Project Consultants for North America Archives

Mixed-Use Redevelopment Entitlement and Permits

The EB-5 Program is Reauthorized

President Biden signed legislation today with the effect that the EB-5 program is reauthorized, in particular its Regional Center component, effective now through September 30, 2027. The program is part of the EB-5 Reform and Integrity Act of 2022 (the “Act”), which itself is part of the Omnibus spending bill signed by the President.

The reauthorization of the Regional Center program follows an almost 9 month lapse, when prior efforts failed to extend the program beyond July 1, 2021. The Regional Centers aspect of EB-5 have allowed foreign investors a special opportunity to invest in high-profile developments that they likely would not otherwise find accessible. The EB-5 program had its controversies and numerous parties had worked to place safeguards to prevent fraud and encourage investment in areas that followed from the original intent of the program.

The EB-5 program allows foreign investors to invest a specified amount of capital into a U.S. enterprise that creates American jobs, in return for permanent residency. With passage of the EB-5 Reform and Integrity Act of 2022, changes were made to the program to presumably improve its implementation. The new legislation emphasizes compliance with EB-5’s intent along with enforcement procedures. Program sponsors under EB-5 will face greater scrutiny in recordkeeping, investment types, audits, and investor communications. The minimum EB-5 investment amount now increases to $800,000 from the current $500,000 for Targeted Employment Areas and Rural Areas, and, changes to $1.05 million from the current $1.0 million for Non-Targeted Employment Areas. These changed minimum investments apply to both regional center and direct EB-5 investments.

With the news that the EB-5 Program is reauthorized, a backload of foreign investors who were in the midst of processing last June, will hopefully soon see progress in the processing of their investment / visa applications.

The EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990.

Planned Community Consultants - Transaction Consultants and Negotiators

Master-Planned Community – Builder Sales

15.02.2019 Golf course redevelopment and adaptive re-use, Master Planned Community Developments, Project Consultants for North America, Residential Housing & Apartments, Transaction and Dealmaking Projects

Acted as a master-planned community consultant to JMB Realty in connection with ongoing build-out of this major Orange County planned residential golf community. Focused residential product and financial analysis in support of ongoing builder sales program, at this resort-style master-planned golf community in Orange County, California. Financial analysis in support of residential product concepting, subdivision build-out, for Owner’s land development team involved with planning and developing this master-planned Orange County community.

Working with project team members including land planning, civil engineering, entitlement representatives, and in-house client project management and financial staff, the various financial analysis included builder residual calculations to support land sale negotiations to third-party home builders.

Coto de Caza is one of Orange County’s leading master-planned communities. The MPC includes golf courses, equestrian facilities, horse trails, and extensive pathways and hiking trails for residents, all in one of Orange County’s more rural settings.

Disposition Valuation for Residential Assets

01.01.1985 Due Diligence Consultants, Project Consultants for North America, Residential Housing & Apartments

Disposition valuation for residential assets as part of a capital recovery plan in connection with a luxury “resort residential” development. Our work included the feasibility analysis of alternative disposition strategies as well as preparation of select due diligence materials for use by 3rd-party buyers. Some operating arrangements of interest to prospective acquirers included community association issues, third-party sales agents agreements, and project permits and entitlement-related matters.

The alternative disposition strategies included: 1) continued hold, build-out, and sales (status quo); 2) same as first alternative but in joint venture with a new capital partner; and 3) the complete sale of the project “as is.”

The Hamilton Cove property is located on Catalina Island, just 26 miles off the coast of Southern California. The resort-residential community is situated within a private cove next to the town of Avalon, the main community of Catalina Island. At the time of our disposition valuation for these residential assets, many of the secluded villas of Hamilton Cove were offered for rent for weekend, weekly, and seasonal occupancy, and this fractional use was part of our valuation.

Catalina Island history goes back well before recorded times. Apparently, the Pimungans of Santa Catalina Island first met European travelers in 1542 – when the native peoples paddled out to greet Spanish explorer Juan Rodriguez Cabrillo and his galleon – just 50 years after Columbus first entered the Western Hemisphere. On this basis, the island was claimed by Spain. Santa Catalina Island was awarded to Thomas Robbins by Mexican Governor Pio Pico, as a land grant in 1846. The land grant by Governor Pico was made just four days before the U.S. invaded California.

Our disposition valuation for these residential assets was part of an overall BCE Development Corp. portfolio sale involving the company’s properties in the western U.S., which included the Hamilton Cove resort-residential community.

Hotel Development Consultants - Due diligence consultants

Huntington Hotel Pasadena

19.08.1982 Due Diligence Consultants, Hotel Development Consultants, Project Consultants for North America, Property inspection services

Feasibility study for required capital improvements program related to the Huntington Hotel Pasadena (subsequently rebuilt as the Ritz-Carlton Hotel Pasadena, now The Langham). The hotel, owned by a major Japanese investment and development organization, was determined to require major life-safety (earthquake reinforcement) upgrades as well as wide-ranging improvement to guest areas including rooms and restaurants.

Our hotel consulting work included a market study, financial projections, capital improvements budget review, and an investment performance evaluation to justify required capital items. The objective was to determine the overall feasibility of various disposition, reconstruction, or substantial renovation alternatives in connection with a pre-litigation evaluation of Owner’s options.

Hotel later rebuilt as the Ritz-Carlton Huntington Hotel.