$100 Million Successful Repayment to New Commercial Enterprise Managed by A&J Capital, Inc.
Source: A&J Capital Inc | Mon June 6, 2022, 07:30:30 EDT
LOS ANGELES, Calif., June 3, 2022 — A&J Capital, Inc. (A&J), a financial services & advisory firm specializing in EB-5, private equity, and investment management, added another milestone to its history as a successful manager of an new commercial enterprises (NCE), an entity with EB-5 capital pooled from immigrant investors seeking lawful permanent residency under the EB-5 Program. The NCE was a senior lender that loaned $100 million to the borrower in connection with a 38-story luxury condominium tower project located in the heart of downtown Los Angeles. This project is a part of a $1 billion master development project known as the “Metropolis”. The completed structure is comprised of 308 condominium units with attractive city views of Los Angeles, a podium level pool, garden, and fitness center located on a resident-only amenity deck, all together spanning approximately 417,955 square feet of enclosed building area. Total buildout costs including land were approximately $300 million, of which $100 million was EB-5 capital managed by A&J. The project was substantively completed in March 2017.
The borrower repaid the $100 million of this senior loan in November 2021, at the maturity of the loan. A&J serves as a manager of the NCE and oversees its day-to-day operations, including the administration of the EB-5 loan.
Under the successful management by A&J, 200 EB-5 investors who invested in the NCE created 3,375 new jobs, an estimate provided by the economist for the project, not only fulfilling the “ten job creation per investor” requirement under the EB-5 Program but also adding additional1,375 jobs to benefit the economy. All jobs were generated from construction related activities of the project and the NCE has fulfilled its requirements of returning capital back to those EB-5 investors who have met their immigration objectives, and NCE will continue to fulfill the requirements needed under the new EB-5 rules and guidance. As of the date of this news release, the majority of the EB-5 Investors in the NCE have received their capital back from their initial investment.
A&J currently administers and manages a number of NCE’s that have EB-5 invested capital in EB-5 qualifying real estate development projects across the United States, including in California, Florida, Louisiana and Texas. These projects at their respective completions are set to create over 15,000 new jobs for the US workforce and revitalize the communities in which they are located.