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Capital United, Greystone, and NES Financial Launch EB-5 Redeployment Program

Full-Service Redeployment Program Provides an “At-Risk” Capital Option for NCEs, Investors and Project Developers; Addresses EB-5 Investor Retrogression

/EIN News/ -- NEW YORK, July 27, 2017 (GLOBE NEWSWIRE) -- Capital United, Greystone, and NES Financial announced today they have joined forces to develop an EB-5 Redeployment Program at the EB-5 Investors Magazine’s EB-5 Investment & Immigration Convention in San Francisco, CA. The three firms, each with a unique specialty in the EB-5 industry, are working together to address risk due to mounting backlog issues as a result of the EB-5 program’s popularity, including retrogression of Chinese investor visa applications.

The comprehensive redeployment investment opportunity is designed specifically to help New Commercial Enterprises (NCEs) with efforts to satisfy USCIS’s “at-risk” requirements as presently defined, while protecting EB-5 Investors until the permitted return of their initial EB-5 investments. On June 14, 2017, USCIS clarified that redeployment does not create a material change as long as the redeployment occurs after the necessary job creation in the original Job Creating Entity (JCE). The EB-5 Redeployment Program provides for redeployment of funds at any time after creation of required jobs, which gives JCEs the flexibility to take advantage of market cycles and sell or refinance their assets whenever they deem appropriate. It also gives NCEs the ability to fund shorter term projects like for-sale condominiums.

The EB-5 Redeployment Program will include investment in Greystone’s Real Estate Short Term Debt Fund (NCE), which will be an actively managed, diversified portfolio of first mortgage loans collateralized by commercial real estate assets. NES Financial will provide Fund Administration Services, Investor Reporting and fully compliant financial reporting. Capital United is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940.

Key highlights of the redeployment program include:

  • NCEs receive 4% current pay, net of fees;
  • Liquidity and security for EB-5 investor capital;
  • Preferred investment, Greystone’s capital investment is subordinated, and Greystone takes first loss;
  • Short term debt underwritten to Government Agency permanent financing programs;
  • First mortgage short term loans secured by commercial real estate assets;
  • SEC-Registered Investment Adviser (Capital United);
  • Institutional-quality third-party fund administration, optimized for EB-5 redeployment; and
  • Built-in compliance and transparency for NCEs, investors and agents.

“As the EB-5 program gains popularity, the visa backlog continues to grow and legislative reform remains on the horizon, we wanted to create a redeployment program that would alleviate concerns for NCEs, investors and Migration Agents while maintaining compliance, security and transparency,” said Allison Berman, Head of Greystone EB-5. “With Greystone’s diverse range of lending platforms, it made sense to utilize our dynamic short term loan program to support this redeployment program. It is critical to have a secure, short term, liquid option to address the redeployment needs of EB-5 investors. We are excited to partner with NES Financial and Capital United – both best-in-class providers in their industries – in creating The EB-5 Redeployment Program.”

“The popularity of the EB-5 program created a need for a program like this,” said Reid Thomas, Executive Vice President & General Manager, NES Financial. “Left unchecked, EB-5 stakeholders including NCEs, Investors and their Migration Agents were exposed to significant risks. Anticipating this need is what prompted us to extend our industry leading fund administration to support EB-5 redeployment.”

“The EB-5 concept is a valuable tool for developers and sponsors, but it must also be approached with smart advisement, looking beyond the initial loan term and to ongoing, long term requirements regarding the investment of the capital tied to the visa application process,” said Brad Stedem, President, Capital United. “Capital United’s role as an investment adviser helps to steward NCEs along the path of EB-5 compliance and redeployment.”

About Cap United
Capital United is a SEC-Registered Investment Adviser and real estate financial services firm whose principals have navigated various market cycles, and possess a proven track record in the EB-5 industry having raised more than $370M over the past 5-years, and delivered over $4 billion in career commercial real estate dispositions and real estate developments. Capital United has extensive relationships within the EB-5 industry, including personal relationships with many Chinese immigration agencies, that are constantly nurtured through extensive international travel and a fulltime network relations team member in Beijing.

About Greystone
Greystone is a leading national commercial real estate lending, investment, and advisory company with nearly 30 years’ experience providing innovative financing solutions for multifamily and healthcare properties. They are experts in creativity and execution across multiple lending platforms including Bridge, CMBS, FHA, Fannie Mae, Freddie Mac, Mezzanine and other proprietary loan programs. Greystone’s total loan origination volume in 2016 was over $7.1 billion. Greystone has originated nearly $3 billion in bridge loans using its own equity with no incurred losses since 2011. Established in 2015, Greystone EB-5 provides developers a sophisticated, fully integrated and full-service approach to accessing EB-5 capital for their projects, while offering EB-5 investors access to best-in-class EB-5-compliant investment opportunities and investment servicing. For more information visit www.greyco.com/lending and www.greystoneEB5.com.

About NES Financial
NES Financial is a Silicon Valley financial technology (FinTech) company providing technology-enabled solutions and services for the efficient back and middle office administration of complex financial transactions. Serving private equity, commercial real estate, and Fortune 1000 clientele, we offer industry-leading fund administration, loan servicing, specialized EB-5 administration, and 1031 tax deferred exchange services. Our unwavering commitment to data security, operational redundancy, and compliance reporting is evidenced by 11 consecutive years of successful independent audits of our technology, processes, and financial controls. Today, NES Financial services over 190 funds, administers over $75B of 1031 transactions annually, and has worked with over 550 EB-5 projects. For more information, visit NES Financial.

PRESS CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@Greyco.com

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Distribution channels: Real Estate & Property Management