Lakeview Landing (Equity): A Compelling Rural EB-5 Project

Lakeview Landing is a 289-unit market-rate apartment community. The project will include four four-story residential buildings within a 48-acre master-planned mixed-use waterfront development in Granbury, Texas. Within the larger mixed-use development, residents are expected to benefit from access to a wide range of amenities, including a clubhouse, resort-style pool, fourth-floor sky lounge overlooking Lake Granbury, co-working spaces, fitness amenities, pickleball courts, a two-acre riverfront park, a marina, walking trails, restaurants, and retail space.

Lakeview Landing follows an almost identical structure to EB5AN’s successful Boynton Beach Multifamily, Terra Ceia Multifamily, and Brandon Multifamily projects, which have all received Form I-956F approval.

This article demonstrates why Lakeview Landing (Equity) is one of the most compelling rural EB-5 projects available today.

Overview of the Lakeview Landing (Equity) EB-5 Project

Preferred Return Structure With 4.0% Annual Return. The Lakeview Landing (Equity) offering is structured as an equity investment with a preferred return. This structure provides EB-5 investors with an above-market 4.0% annual return.

Short 3-Year Target Investment Repayment Timeline. The expected duration of the investment is only 3 years.

High-Growth Location. Lakeview Landing is located in Granbury, Texas, a rural town within Hood County. Despite the project’s rural location, Downtown Fort Worth is accessible within a 45-minute drive. U.S. Highway 377 and connected major highways, including I-35W and I-30, provide Granbury with convenient access to Fort Worth (35 miles), Dallas (60 miles), both Dallas Fort Worth International Airport and Dallas Love Field Airport, and major employment hubs across the metroplex.

Excellent Developer Track Record. Lakeview Landing is being developed by Realty Capital Residential (RCR), the residential development division of Realty Capital Management. RCR specializes in developing and operating high-quality multifamily communities across Texas and Colorado. The firm has successfully delivered a range of projects, from garden-style and high-rise apartment buildings to mixed-use developments with retail and clubhouse amenities. RCR has developed, or is in the process of developing, nearly 2,000 units with a total development cost of over $500 million. Leveraging a proven track record of on-time project delivery, successful sales, and strategic retention of key assets, RCR integrates expert development, affiliated property management, and disciplined investment execution to generate long-term value for both residents and investors.

Leading Property Manager. The project is expected to be operated by Greystar, a global leader in multifamily rental housing property management.

Rural TEA Designation. The project is in a rural targeted employment area (TEA). Investing in a rural TEA project qualifies EB-5 investors for a reduced minimum investment of $800,000. Investors in rural TEA projects also qualify for priority processing of their I-526E petition and access to EB-5 visas that are reserved for rural TEA investments. These set-aside rural EB-5 visas make up 20% of the total EB-5 visa supply.

I-526E Approval Refund Guaranty. If an EB-5 investor’s Form I-526E petition is denied by USCIS, the project provides for faster repayment of that investor’s $800,000 investment.

Job Creation Guaranty. The project has a guaranty from RCR that all EB-5 capital will be spent on qualifying expenses that create EB-5 eligible jobs.

Independent EB-5 Oversight. EB5AN controls the regional center that is sponsoring the project as well as the general partner of its EB-5 investment fund. EB5AN is 100% independent from RCR. Independent oversight of the EB-5 project prevents a conflict of interest between the EB-5 investment parties and the developer. This structure helps reduce risk for the project’s EB-5 investors.

Third-Party Fund Administration. PRXY Fund Services will serve as the project’s third-party fund administrator. Third-party fund administration adds a layer of security and transparency for EB-5 investors.

Significant Job Creation. Lakeview Landing is expected to create a total of 659 jobs for EB-5 investors, far more than are needed to satisfy the 10-jobs-per-investor requirement.

With these features, Lakeview Landing is a best-in-class rural EB-5 project that stands out in today’s changing market. These top features are examined in greater detail below.

Understanding EB-5 Investment Financial Risk

For EB-5 investors to qualify for Green Cards, their money must be considered “at risk” by USCIS. To be at risk, an EB-5 investor’s entire $800,000 investment must be subject to loss. In other words, an EB-5 project cannot be 100% risk free and compliant with the EB-5 program.

Meeting the at-risk requirement, however, does not mean the financial risk to EB-5 investors has to be high. In fact, many EB-5 projects are much more financially risky than necessary.

Unfortunately, EB-5 investors are often unaware of how risky projects are before they invest. Projects with high levels of financial risk are more likely to result in EB-5 investors not only losing their investments but also failing to secure their permanent Green Cards.

While EB-5 projects ought to be transparent, EB-5 investors must conduct thorough due diligence before investing. Only a small number of projects provide substantial financial safeguards for EB-5 investors.

Following are some key features offered by safer EB-5 projects:

Financial Transparency. A project should provide any prospective investor with access to documents that verify its financial claims. For instance, if a project says it has a large number of sales, it should give prospective investors access to sales data before they invest. If an EB-5 project is unwilling to share financial documents, it may be hiding important information from potential investors. EB-5 investors should be wary of any project that is not transparent.

I-526E Approval Refund Guaranty. If USCIS denies an EB-5 investor’s Form I-526E immigrant petition, he or she will be unable to secure a Green Card through the EB-5 program. But an I-526E denial does not mean that the investor’s $800,000 will be returned right away. The investor’s principal investment may be locked up for years. The best EB-5 projects, however, offer their investors approval refund guaranties that allow denied investors to be repaid sooner than otherwise possible in the event of a denied immigrant petition.

Clear Exit. One of the key financial risk factors of any investment is the timing and likelihood of repayment. A project should clearly state when and how it plans to repay its investors. But these claims are only as good as the company making them. The exit plan should be supported by the track record of the developer.

Every project’s risk profile is different, and EB-5 investors should carefully consider all project risks before investing. By understanding these risks and asking the right questions, EB-5 investors can make informed decisions and avoid unnecessary risk.

Understanding Rural TEA Designation

What Qualifies as a TEA?

To qualify as a TEA, an area must be rural or have a high unemployment rate. Certain public infrastructure projects also qualify for TEA benefits.

To qualify as a rural TEA, a project should not be located within a metropolitan statistical area (MSA) as defined by the U.S. Office of Management and Budget and not be on “the outer boundary of any city or town having a population of 20,000 or more.”

Benefits of Selecting a Rural TEA EB-5 Project

EB-5 projects in rural TEAs qualify EB-5 investors for significant benefits.

First, the minimum EB-5 investment for TEA projects is $800,000 instead of $1,050,000.

Second, foreign nationals who invest in rural TEA projects qualify for set-aside EB-5 visas.

These set-aside EB-5 visas are not currently subject to any backlogs, meaning fewer delays for investors from countries where the demand for EB-5 visas exceeds the supply (known as visa retrogression). Foreign nationals with set-aside EB-5 visas can often immigrate to the United States years before those without reserved visas.

Under the EB-5 Reform and Integrity Act of 2022, 32% of the total number of yearly EB-5 visas are set aside. Of these, 20% are set aside for rural TEA investors.

Evaluating Rural EB-5 Projects

Some basic research can help EB-5 investors avoid risky projects.

EB-5 investors should carefully vet project developers. Investors should confirm that the development team has experience with similar projects and that these projects were successful.

Another factor to consider is the project type, its location, and its feasibility in the market. Every type of project carries its own unique risk profile. EB-5 investors need to research each potential project to learn whether the project is viable under current market conditions and is a good match for their investment goals.

EB-5 investors should not consider a project unless the regional center sponsor has a strong reputation. A regional center sponsor should be led by experienced industry professionals with extensive knowledge of the EB-5 program, its regulations, and current USCIS policies. The regional center should be 100% independent from the developer. With the EB-5 program in a state of transition, having a skilled, trustworthy regional center sponsor is more important than ever. An inexperienced or poorly run EB-5 regional center poses significant risks to EB-5 investors.

Lakeview Landing Is a Best-in-Class Rural EB-5 Project

Lakeview Landing is a unique rural EB-5 project with key features that benefit EB-5 investors while limiting their financial and immigration risks. EB-5 investors enjoy an above-market 4.0% annual return and a short 3-year target investment duration. The project is being developed by RCR, a highly experienced, well-capitalized developer. With growing demand, an independent regional center, significant job creation, and more, Lakeview Landing is one of the most compelling rural EB-5 projects on the market.

Above-Market 4.0% Annual Preferred Return

Lakeview Landing is an equity investment with a preferred return that offers EB-5 investors an annual return of 4.0%. This higher preferred return is relatively rare in the current EB-5 market.

Short 3-Year Target Investment Repayment Timeline

The project has a target investment period of only 3 years. EB-5 investors are expected to be repaid once RCR completes development of the project, operations stabilize, and the project is sold.

High-Growth Location

Lakeview Landing is located in Granbury, Texas, a rural town within Hood County. Despite the project’s rural location, Downtown Fort Worth is accessible within a 45-minute drive. U.S. Highway 377 and connected major highways, including I-35W and I-30, provide Granbury with convenient access to Fort Worth (35 miles), Dallas (60 miles), both Dallas Fort Worth International Airport and Dallas Love Field Airport, and major employment hubs across the metroplex.

Granbury has been named as a Best Historic Small Town and Best Summer Weekend Escape by USA Today. The property is a 5-minute drive away from Historic Downtown Granbury, which is home to additional shops, restaurants, local breweries, and entertainment options. Granbury is also home to several festivals including the Granbury Wine Walk and Harvest Moon Festival, which attracts over 10,000 annual visitors from across the country.

Experienced Developer

RCR, the residential development division of Realty Capital Management, has extensive experience developing communities similar to the project. RCR has developed or is in the process of developing a total of nearly 2,000 units with a total development cost of over $500 million.

Significant EB-5 Job Creation

To qualify for an EB-5 visa, each EB-5 investor must show that his or her investment created at least 10 new, full-time jobs for U.S. workers. As a regional center project, Lakeview Landing can count both direct jobs and indirect jobs that result from construction expenses as well as revenues.

The project needs to create only 480 jobs to support the maximum number of EB-5 investors. Ultimately, Lakeview Landing is expected to create a total of 659 qualifying jobs for EB-5 investors through construction and operations. As a result, investors in Lakeview Landing will have more than enough jobs to meet the EB-5 job creation requirement. By creating an ample supply of jobs, the project reduces immigration risk for EB-5 investors.

Experienced Property Manager

Once operations commence, Lakeview Landing is expected to be managed by Greystar, a global leader in multifamily rental housing property management. Greystar has over 25,000 team members in 249 markets with over 966,700 units under management.

An experienced, successful property manager helps ensure that the project will generate the operational revenue needed to create qualifying jobs for EB-5 investors.

An Experienced, Independent Regional Center

EB5AN is the regional center sponsor for Lakeview Landing. EB5AN is entirely independent from the developer, which means it can focus on meeting the needs of its EB-5 investors without conflicts of interest. EB5AN is an experienced EB-5 regional center operator. It has facilitated more than $1 billion of investment under the EB-5 program, and its total project development costs exceed $7 billion.

More than 2,700 families from over 70 countries have selected EB-5 projects sponsored by EB5AN regional centers.

Lakeview Landing: A Unique, Low-Risk Rural EB-5 Project

No EB-5 project can remove all risks to its investors. Financial and immigration risks are a part of the EB-5 program. But some projects, like Lakeview Landing, are lower risk than others.

Lakeview Landing offers several unique features that mitigate financial and immigration risks to its EB-5 investors.

For more information on the Lakeview Landing (Equity) project or other available EB-5 projects, please schedule a one-on-one call with EB5AN or send an email to info@EB5AN.com.