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AIG Presentation

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EB-5 CAPITAL A Complete EB-5 Capital Solution for Real Estate Development
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Page 1: AIG Presentation

EB-5 CAPITALA Complete EB-5 Capital Solution for Real Estate

Development

Page 2: AIG Presentation

About Us

A merican Immigration Group, LLC (“AIG”) is pleased to present an EB-5 capital solution to real estate developers for projects throughout the US. AIG presently has offices in Hong Kong, Palm Beach, Florida and New York and is responsible for managing all facets of the United States Citizenship And Immigration Services (“USCIS”) approved EB-5 Regional Center Immigrant Investor Program.

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Our Team Members David FinkelsteinManaging Principal & CEO

Jacqueline Finkelstein-LeBow Managing Principal & COO

Blake FifeAnalyst & Investor Relations

Qendrese SadriuDirector of Investor Relations

American Immigration’s Managing Principals have over 50 years combined real estate experience.

Brandon FifeDirector of Project Development

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Andrew KingstonSecurity Counsel

KINGSTON PETERSEN

Andrew Kingston is managing partner with Kingston Petersen and has over 27 years’ experience providing financing, transactional and corporate law services to select clients throughout the world. Mr. Kingston gained extensive securities law experience as general counsel to publicly traded companies and technology start-ups. Since 2009, he has acted as securities law counsel to a large number of successful EB-5 private placements across the Country.

David Hirson, Esq.Immigration Counsel

David Hirson & Partners, LLP

With more than 30 years of experience in the practice of immigration law, David was previously the partner in charge of Fragomen's Consular Practice. He has been certified as a Specialist in Immigration and Nationality Law by the State Bar of California, Board of Legal Specialization continuously since 1990. David Hirson & Partners, LLP’s EB-5 practice group is headed by David. Having been involved in the EB-5 program since its inception in 1991, David filed and received green card approval for one of the very first EB-5 investors. David receives recognition year after year as one of the top EB5 lawyers in the Country.

Our Professionals

Page 5: AIG Presentation

James Arata, CPA

AccountantManaging Director

RSM McGladrey

James Arata is Managing Director at RSM McGladrey. McGladery is a leading provider of assurance, tax and consulting services in the US. McGladrey is a member of the global accounting network; RSM International. McGladrey has more than 6,700 professionals in 75U.S. cities and access to more than 32,000 people in 100 countries through their membership in RSM International.

Our Professionals

Dr. Michael K. EvansEvans, Carroll & Associates, Inc.

Chief EconomistEvans, Carroll & Associates, Inc.

Dr. Michael K. Evans is Chairman of Evans, Carroll & Associates, Inc. Evans, Carroll & Associates is an economic consulting firm, specializing in EB-5 immigration analysis, and economic impact studies of development projects and new construction. Winner of Blue Chip Economic Indicator Award for most accurate macroeconomic forecasts, Dr. Evans received Ph.D. in Economics at Brown University.

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Relationship with Pearl BayPearl Bay Consulting is the strategic partner of AIG in China. The Director of

Pearl Bay has had a working relationship with the CEO of AIG, David Finkelstein for nearly 5 years.

AIG identifies and develops suitable and secure EB-5 projects in America. Pearl Bay gives AIG projects full support in China and is the liaison to our network of immigration consultants.

Pearl Bay Consulting Ltd. is an international leader in EB-5 services, offering advice and solutions to our clients in China and the United States of America.

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Relationship with Pearl Bay

Tyrone W. SirenDirector of Pearl Bay Consulting, Ltd.

Tyrone has lived in Asia for nearly 20 years. He originally came to Asia as a Fulbright-Hayes Scholar to study immigration issues in Cambodia and Thailand.

Joanne LiuHunan Normal UniversityBachelor of LawProject Manager

Stella HuangBeijing Institute of Technology, ZhuhaiBachelor of Engineering Document Manager and China Consultant Liaison

Hector ChanBeijing Normal University, ZhuhaiBachelor of eCommerce (BBA).Digital Marketing Manager

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Project Experience

HARBOURSIDE PLACE JUPITER, FLORIDA $100 Million EB5 Funding Located on the Intracoastal Waterway,

the Town Center

VIA MIZNER BOCA RATON, FLORIDA

$160 Million EB5 Funding Located on the northeast corner of the

intersection of South Federal Highway and East Camino Real in Boca Raton, Florida.

AMERICAN IMMIGRATION GROUP, LLC’s Managing Partner, David Finkelstein as the former Chief Financial Officer for the Florida Regional Center and US Immigration Fund was responsible for the financial controls of many EB 5 projects. He coordinated the financial structuring and EB5 documentation of all projects with seasoned SEC & Immigration Attorneys and Economists all specializing in EB5, USCIS (United States Citizenship & Immigration Services) programs. Both these Regional Centers brought to the China market the following projects:

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Project Experience THE CHARLES, NEW YORK,

NY

$22 Million EB5 Funding Located at 1355 First

Avenue off of 72nd Street

BRYANT PARK, NEW YORK, NY

$52 Million EB5 Funding Located at 20 West 40th Street,

between Fifth and Sixth Avenues

65 BAY STREET, JERSEY CITY, NEW JERSEY

• $65 Million EB5 Funding • Located at 65 Bay Street, Jersey

City

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Project Experience AVENUE OF AMERICAS , NEW YORK,

NY

$80 Million EB5 Funding Located at 855 Avenue of

Americas, NY, NY

WEST 57th SREET , NEW YORK, NY

$180 Million EB5 Funding Located at 625 West 57th Street,

NY, NY

Page 11: AIG Presentation

Current Projects

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281 Fifth Avenue New York, NY Six parcels of land

13,936 square feet

A tower of between 55 and 60 floors

Approximately 145 high end residential condominium units

Approximately 174,601 square feet

Approximately 12,199 square feet of retail space.

Developer: Victor Homes and Lend Lease

Experienced developer with previous successful EB-5 project

EB-5 loan: $ 89,000,000

EB-5 unit: 178 investors 

Job Creation:

Required job creation: 1,780

Actual job creation: 2,190

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The Godfrey, Chicago, Illinois Location: 127 W Huron St, Chicago, IL 16 story, 221-key full service style hotel Downtown Chicago Approximately 15,000 sq. ft. indoor/outdoor rooftop lounge

and event space Approximately 2,200 sq. ft. of meeting space Approximately 1,300 sq. ft. of spa/fitness space Developer: Oxford Capital, one of the largest hotel

developers in the United States 50 Investors Phase 1, SOLD OUT 22 Investors Phase 2 EB-5 Funds (Loan I): $ 25.0 million EB-5 Funds (Loan II) : $ 11.0 million

Job Creation: Required job creation: 720 Actual job creation: 904

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• Located: 7667 International Drive, Orlando, Florida

• An indoor hybrid arcade/theme park space

• Features the tallest roller coaster in Central Florida

• A brand name hotel, a 300 foot long zip line, retail, adult and family style gaming, indoor high speed go-kart racing, restaurants, bars, private event rooms, live entertainment, Central Florida’s tallest structure, out of this world fine dining, and the most thrilling rollercoaster rides in the world.

• Developer: Robert and Bernard Friedman third generation of real estate developers

•EB-5 Funds (Loan) $190,000,000

•Job Creation:

•Required Job Creation: •Actual Job Creation: 6,391

Skyplex, Orlando, Florida

Page 15: AIG Presentation

Kingsbridge National Ice Center, Bronx, NY

Located: 29 West Kingsbridge Road, Bronx NY

Developing a 525,000 sq. ft. Armory into a 750,000 sq. ft. facility with food and beverage service, retail facilities and 5,000-seat state-of-the art arena.

50,000 sq. ft. dedicated community center, a 15,000-square foot health and training facility, 5,000 locker rooms with varying sizes, 9 ice sheets, onsite parking for over 420 cars, equipment storage, maintenance and cleaning services as well as a pro shop for all ice sports.

Developer: KNIC Properties LP, headed by Mark Messier, John Neary, Sarah Hughes , Stephan Butler, Ryan Hughes and Kevin Parker

EB-5 Funds (Preferred Investment) $250,000,000

Job Creation:

Required job creation: 5,000

Actual job creation: 6,127

Page 16: AIG Presentation

Le Meridien Hotel, Orlando, Florida Located: 9431 Universal Boulevard, Orlando, Florida

The hotel portion consists of 365 keys and a total of 330,000 sq. ft.

Hotel will include meeting and convention space, food and beverage between two restaurants, a lobby bar and a nightclub, amenity space and a 775 car garage.

4/4.5 star standards

The site, which is zoned as of right, is located in the Convention Center district of the International Drive submarket of the Orlando Hotel Market.

Developer: Empire Equities is one of the fastest-growing most dynamic real estate firms in the country. Empire Equities owns, operates, and manages 2600 residential units throughout Brooklyn, the Bronx and Queens NY; 6 Hotels situated throughout the northeast; 200,000 sq. feet of retail; and 21 gas stations throughout the state of Florida.

EB-5 Funds (Loan): $63,000,000

Job Creation:

Required job creation: 1,260Actual job creation: 1,710

Page 17: AIG Presentation

Banyan Cay Resort, West Palm Beach, FL Located: at 200 Presidential Way, West Palm Beach, Florida

Banyan Cay has teamed up with Noble House Hotels & Resorts

153 acres that includes 130 acres of an existing golf course that will be renovated to include a new clubhouse

199,961 gross sq. ft. resort hotel contiguous to the golf course, which will be the area’s first 4+ star, 150 keys boutique hotel consisting of a full service restaurant and bar, outdoor dining space , fitness and spa facility, convention/meeting space, golf course club house which will be connected to the hotel via a breezeway, 204 parking spaces and a great lawn of approximately 3 acres

Noble House hospitality portfolio encompasses 17 independent properties across the United States, covering each of the corners of the Country, and occupying some of the most coveted real estate in the Nation.

EB-5 Funds (Loan) $ 35,000,000

Job Creation:

Required job creation: 700 Actual job creation: 990

Page 18: AIG Presentation

Funding Process

Aig or its agents travel to foreign countries to recruit local investor brokers

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EB5 Program In 1990, under section 203(b)(5) of the Immigration and Nationality Act (INA), 8 U.S.C. § 1153(b)(5) the

US Congress created the fifth employment-based preference (EB-5) immigrant visa category.

The program is monitored by the US Government within the control of Homeland Security to assure that all investors meet very strict requirements relating to the background of the entire family and the source of funds used to invest in the USA.

Flexible and low-cost EB-5 financing can play a key role in the project capital stack for Developers of large scale construction projects such as hotels, apartments, office space, restaurants and healthcare facilities even during periods of lack of liquidity in the credit markets.

The EB5 loan will be fully non-recourse and subordinated only to the senior acquisition/construction financing.

The cost of the EB-5 loan is considerably less than a typical market Mezzanine loan and is an attractive vehicle to replace expensive equity in a Project typically offered by other institutional partners.

The EB-5 loan carries a term of five years with possibly two - 12 month extensions. We offer flexible terms to redeploy the Funds for Projects having a shorter life span than five years.

Page 20: AIG Presentation

Funding Process HOW THE PROCESS BEGINS

The process begins with a full understanding of your Company’s business, your track record and the purposes for which you will use the EB-5 Loan proceeds. We will analyze the project’s capital structure and other critical financial information (pro forma, business plans and proposed use of the EB-5 Loan proceeds). Upon completion of our review we will make a determination as to the fitness of your project within the EB-5 Program. An outside economist will prepare a complete econometric study predicting the number of jobs that will be created based on the budgets provided to us. Based on this information, we will determine the amount of funds that will be funded under the EB-5 Program.

• FUNDING TIMELINE

Generally, the time line to obtain funds for the project from the time the Developer executes a full term sheet is about 6 months, possibly less for smaller loans, or a bit longer for larger loans.

• CAPITAL STACK

The capital stack of a typical EB-5 project would be as follows:

Senior Financing ………60%

Developer’s Equity .… 20%

EB-5 Funding …………. 20%

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EB5 Immigration Procedure

Interested investors will have to sign and Investor Suitability Questionnaire and provide legible copies of certain identification documents.

When AIG confirms that the investor may proceed then AIG issues a set of confidential offering document so the investor can evaluate the investment opportunity with their advisers

Investor will provide contact information for their attorney to AIG. The Company will provide your immigration attorney with documentation to support your I-526 Petition.

Page 22: AIG Presentation

EB5 Immigration Procedure The investor has to deliver the signed documents to the Managing Member together with $500,000 Subscription amount and the Administrative fee to the

Escrow Agent.

Within 90 days prior to the end of the second anniversary of the date that the investor’s conditional permanent residence status was obtained, AIG will provide them and their attorney with impact study results containing actual job creation numbers

The investor and their attorney must file for I-829 with USCIS before their second anniversary of the date the investor obtained the conditional permanent residence status

Upon approval of I-829 USCIS removes conditions from permanent residence. The investor continues to be a Series A Member and will continue to receive distributions for their investment in accordance with the Operating Agreement

The investor will continue with the process of obtaining US citizenship via consular processing or an adjustment of status application

Page 23: AIG Presentation

Role of American Immigration Group

AIG provides a complete EB-5 capital solution for real estate developments. We perform the following services:

- Perform a rigorous evaluation to determine if the project will satisfy EB-5 requirements and provide for a sound investment- Prepare detailed business plans and econometric studies to satisfy USCIS EB-5 Program requirements.- Determine whether a proposed Project meets the job creation requirements of the EB-5 Program- Report to USCIS on a periodic basis all activities of the Regional Centers that sponsor the Projects- Manage the day-to-day activities of the new commercial business that provides the loan from the EB-5 proceeds and secures all steps necessary to support the Foreign Investor’s application to obtain a US Visa and green card.

Our investment process is a full review. We select businesses and partners who have been determined to hold exemplified and outstanding track records. We perform the following

services:

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Role of American Immigration Group EB-5 BUSINESS MANAGEMENT

A New Commercial Enterprise (“NCE”) is established by AIG for each Project. An Operating Agreement is entered into and an AIG affiliate serves as the manager for that business.

The Manager of the business will perform the following services:

• Monitor the activities of business/Project into which the EB-5 Loan is made to ensure continuing compliance under the EB-5 Program

• Expend the capital and income of the Partnership in accordance with annual budgets established by the General Partner and in furtherance of the business of the Partnership;

• Administer the Loan on behalf of the Partnership and exercise all rights and privileges of the Partnership arising from or relating to the Loan and any Loan documentation;

• Update the Foreign Investors periodically on the status of the EB-5 investment and their respective applications to USCIS

• Maintain appropriate financial and other records

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Role of American Immigration Group REGIONAL CENTER IMMIGRATION SERVICES

AIG manages the EB-5 application process to ensure that the filings with USCIS are thorough and accurate. AIG handle's the full document flow between the Immigration Attorneys, Foreign investor offices overseas and USCIS. Among other things, AIG provides the following documents to the EB-5 investor’s immigration attorney:

• A comprehensive business plan that satisfies USCIS requirements

• A project specific econometric study that fully describes the regional center job-creation

• A signed Operating Agreement for the management of the NCE business into which the Foreign Investor invests

• All Offering Documents

• All Escrow documentation to secure the investment of the EB-5 funds in a third party banking institution

• All documentation detailing the EB-5 loan proceeds in order to establish the feasibility and the completion of the Project

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Press• New USCIS Data Shows Remarkable Growth for EB-5 Program

• “The numbers released by USCIS point to astounding growth of investors participating in the EB-5 Program as well as investors demonstrating jobs created by EB-5-funded projects,” said IIUSA Executive Director Peter Joseph

• Bipartisan Legislation To Permanently Authorize EB5 Program• “the legislation attempts to alleviate annual visa congestion by not having the spouses and

children of immigrant investors to count against the annual visa limit. This will greatly increase the number of available visas….previous 10,000 included family members so if a family of 3 came in on the I-526 petition then that counted as 3 against the 10,000.”

AMERICAN IMMIGRATION GROUP WAS FEATURED ON FRONT PAGE OF THE NYTIMES REAL ESTATE SECTION

“Two or three years ago, the government created a structure that made it much easier for us,” said David Finkelstein, the chief operating officer of the American Immigration Group, which advises developers on the visa program. “Now we can use our construction costs and certain soft costs, like architectural costs, to determine how many jobs we will create, and therefore, how much we can raise from investors.”

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EB5 Visa Statistics

2006 2007 2008 2009 2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

7000

8000

9000

EB5 Visas Issued

793

1,442

4,218

1,885

3,423

7,641

8,567

802

Page 28: AIG Presentation

EB5 Visa Statistics Investor demand and EB-5 capital formation set records in

FY2014, with USCIS receiving 10,928 investor petitions, approving 5,115 and 12,453 pending. This translates into more than $5 billion in capital submitted for intended deployment into the U.S. economy, over $2.5 billion approved for investment and an additional $6.2 billion in capital awaiting federal adjudication.

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EB5 Visa Statistics

Iran2.43%

China60.45%S.

Korea 14.92%Taiwan 4.085%

Great Britain 5.01%

Top Five EB5 Countries 2006-2013

Page 30: AIG Presentation

EB5 Visa Statistics


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