EB5AN is pleased to announce that the Boynton Beach urban EB-5 project successfully completed the land closing process as scheduled on April 30, 2024.
Ownership of the project site has now been officially transferred to the project’s job creating enterprise (JCE) managed by the developer, The Kolter Group. The terms of the land purchase agreement have been met, with all the relevant transactional documents signed by both parties.
With land closing complete, Kolter can now begin construction of the Boynton Beach apartment complex.
The Boynton community will feature 210 apartment units for active adults aged 55 and up.
The project is offering two distinct investment funds for EB-5 investors: an equity fund and a loan fund.
Construction is scheduled to be fully underway by the summer of 2024. All the pre-construction stages of the Boynton Beach project have been completed on schedule thus far.
The Boynton Beach project’s land closing is significant for EB-5 investors. With the pre-construction phase of the project complete, Boynton Beach has moved significantly closer to creating the required EB-5 jobs and repaying its EB-5 investors.
The land closing demonstrates that the Boynton Beach project is progressing on schedule and in line with its business plan. It also demonstrates the developer’s strong financials for completing the project.
“Completing the land closing process is an important milestone in every real estate project,” explains Sam Silverman, managing partner of EB5AN. “The Kolter Group has advanced the Boynton Beach project’s pre-construction phase right on schedule. This event brings us closer to creating the EB-5 jobs for our investors, which will qualify them for permanent U.S. Green Cards.”
In this article, we explain the importance of land closings for EB-5 projects and review several features that make Boynton Beach an exceptional urban targeted employment area (TEA) EB-5 project.
The Importance of Land Closings in EB-5 Projects
Boynton Beach: A Low-Risk EB-5 Project
- The Kolter Group’s Impeccable Track Record
- Significant Job Creation
- High Demand for Active Adult Communities in Florida and Boynton Beach
- Safety Features for EB-5 Investors: Job Creation and I-526E Repayment Guaranties
Learn More About the Boynton Beach Urban EB-5 Project
The Importance of Land Closings in EB-5 Projects
Every EB-5 investment involves a degree of financial and immigration risk. This means that EB-5 investors are not guaranteed to be repaid their funds or to qualify for U.S. Green Cards.
Many EB-5 projects on the market today carry a high level of both financial and immigration risk. But, if they do their due diligence, EB-5 applicants do not have to invest in risky projects.
By choosing a project that is already making progress and has strong financials, EB-5 investors can significantly reduce their risk. Such low-risk EB-5 projects are more likely to repay their EB-5 investors on time and create all the required EB-5 jobs for their investors to get U.S. Green Cards.
Land Closing Reduces Risk for EB-5 Investors
If an EB-5 project has completed land closing, this means that the JCE already owns the land on which the project will be constructed. This is often a sign that the developer is financially stable and committed to completing the project, as purchasing the land can be one of the largest expenses in an EB-5 project.
Land closing also shows that the developer has likely completed the initial regulatory and development approval steps. These include applicable government permits and zoning approvals.
With the land already purchased and these regulatory steps completed, the project is much more likely to start construction on schedule.
But if the developer is unable to close the land purchase, the project may be canceled altogether. Or the EB-5 project may be delayed by several months or years.
Any delays in an EB-5 project would negatively impact EB-5 investors.
In the meantime, the developer could run into financial difficulties, or the project’s industry could go through major changes that make the project unfeasible. Manufacturing-based EB-5 projects are at a particularly high risk in this scenario.
Delays often result in increased project costs and may affect EB-5 investors’ returns. Crucially, EB-5 investors’ repayment may be delayed by many months or years if the project is behind schedule.
If an EB-5 has not even purchased the land where the construction will occur—or if the construction is not expected to start for several months or even years—a lot can go wrong before construction begins.
Additionally, EB-5 projects that do not own the land may not be able to acquire the land or obtain the required government approvals. Once again, this could either delay the project or result in the project being canceled altogether.
And if an EB-5 project has not yet purchased the land, this could be a red flag that the developer is not fully committed to completing the project.
Conversely, an EB-5 project that has already purchased the land and is ready to immediately begin construction is a safer option.
Boynton Beach: A Low-Risk EB-5 Project
The Boynton Beach EB-5 project offers a high level of investor safety with an experienced, well-capitalized developer, significant job creation, a thriving real estate sector, and several safety features designed specifically with EB-5 investors in mind.
The Kolter Group’s Impeccable Track Record
The Kolter Group is one of the largest real estate developers in the Southeast United States.
Since its founding in 1997, Kolter has never failed to repay a loan or execute on the development of one of its real estate development projects.
Kotler has invested in over 180 real estate projects with a total expected value of over $29 billion. At the end of 2023, Kolter had over $1.5 billion in loan commitments from lenders, including Wells Fargo, PNC, and Regions Bank.
Kolter’s other active adult projects, including single-family home communities, have been highly successful in Florida and throughout the Southeast.
In the past, EB5AN and Kolter have worked on over 15 EB-5 projects. All the EB-5 funds in these projects have already been repaid or are in good standing and on track toward completion.
Significant Job Creation
Every EB-5 project must create at least 10 jobs per EB-5 investor. This qualifies each EB-5 investor and their families to receive permanent U.S. Green Cards.
Some EB-5 projects aim to create the minimum of 10 jobs per investor and then fall short. Investors in these projects are often left without their U.S. Green Cards.
Boynton Beach only needs to create a minimum of 740 qualifying EB-5 jobs for its investors. But the project is expected to create at least 859 such jobs.
This “job cushion” greatly lowers the immigration risk for EB-5 investors.
High Demand for Active Adult Communities in Florida and Boynton Beach
South Florida is a hub for retirees and active adult communities. In 2022 alone, 12% of retirees who moved to a different state chose Florida.
The state of Florida has no income, estate, or inheritance tax, making the state a prime location for retirees, who have built a strong community throughout South Florida.
The city of Boynton Beach itself is an ideal retirement hub, with access to amenities and healthcare along with waterfront residences and recreational opportunities.
In addition to this high demand, the Boynton Beach project faces limited competition, with no other existing or planned active adult communities within a five-mile radius around the project.
Safety Features for EB-5 Investors: Job Creation and I-526E Repayment Guaranties
Both the equity and loan investment funds in the Boynton Beach project offer multiple safety features that protect EB-5 investors’ funds and help them qualify for Green Cards.
Kolter has also provided the EB-5 investment fund for Boynton Beach with a job creation guaranty.
Moreover, EB-5 investors in Boynton Beach enjoy an I-526E repayment guaranty. This means that, if an investor’s I-526E petition is denied, they qualify for a faster repayment of their fund than the standard repayment period.
Features of Boynton Beach’s Equity Fund
Boynton Beach’s equity investment fund offers an annual preferred return rate of 5.0% for its EB-5 investors. This return rate is significantly above the market average for EB-5 projects.
EB-5 investors in Boynton Beach’s equity fund will be eligible for high returns while enjoying the safety features described above. This combination of high returns with low risk is particularly rare in the EB-5 market.
One EB-5 investor in Boynton Beach’s equity fund was approved for work and travel permits in only 87 days, which further shows the benefits of investing in this project.
Additionally, the target repayment timeline for equity investors is only 3.75 years.
Features of Boynton Beach’s Loan Fund
The loan fund for the Boynton Beach project has a short repayment term of only three years with a single optional one-year extension.
In addition, investors in the loan fund will have an added layer of safety: The EB-5 loan is backed by a repayment guaranty from a Kolter Group parent company. The parent company has a significant level of equity and owns substantial assets.
Learn More About the Boynton Beach Urban EB-5 Project
With a variety of EB-5 projects on the market today, it’s challenging to decide which one is best for you. Each project has a unique level of immigration and financial risk that you need to evaluate before investing.
When choosing an EB-5 project, you should also consider factors such as the repayment period, return rate, and the developer’s track record.
“Choosing an EB-5 project is a major decision for any EB-5 investor,” notes EB5AN managing partner Mike Schoenfeld. “With the Boynton Beach project, we believe we have struck a balance between safety and offering high returns with a relatively short investment timeline. Boynton Beach offers the ‘best of both worlds’ to investors. We’re excited that the project is making steady progress and on schedule.”
We invite you to schedule a free consultation with EB5AN to find the best EB-5 project for you.
Further Resources
Boynton Beach (Equity) Project Page
