Greystone’s RE Friendly Foray
- Jun 18, 2015
By Keith Loria, Contributing Editor
Greystone has created a new group to provide EB-5 financing for U.S. real estate developers, becoming the industry’s first EB-5 sponsor with the capabilities and financial strength of a full-service real estate lender, investor, fiduciary, servicer, developer, and advisor.
“Despite a handful of large-scale developers that have opted to build their own in-house EB-5 platforms, most developers are not willing or able to invest the time and effort to create the same,” Justin Gardinier, the recently named managing director who will lead Greystone’s EB-5 group, told Commercial Property Executive. “ Greystone offers the latter group of developers a substantially superior level of service and execution certainty relative to the vast majority of regional centers in the market currently. We see a real opportunity in raising the bar for the industry and becoming the model for the next generation of EB-5 sponsors.”
The EB-5 market has experienced substantial growth since the market downturn and has become an increasingly attractive form of financing for real estate developers across the country. As the EB-5 market has evolved and matured over the last several years, offerings have increased in number, size and complexity.
“With over 670 approved regional centers in the market today, and with increasing scrutiny of the EB-5 program and EB-5 offerings by various regulators, it has become increasingly important for developers to align themselves with an EB-5 sponsor that can provide institutional quality execution for their EB-5 offerings,” Gardinier added. “Greystone offers developers a way to access EB-5 capital with more certainty and less risk than the average regional center in the market today can provide.”
Gardinier has more than 15 years of real estate and finance experience as an advisor and principal and previously worked for CIM Group L.P., where he established a successful EB-5 capital-raising platform that raised EB-5 funds for CIM’s development projects.
According to Gardinier, providing EB-5 capital is a natural extension of Greystone’s existing product offerings, and allows the company to provide a complete financing solution including construction financing, bridge financing, EB-5 financing and permanent financing for projects of all sizes and complexities.
“We are actively building a pipeline of EB-5 offerings from new and existing clients across Greystone’s various lending businesses,” he concluded. “We are in active discussions with developers in markets across the country, both large and small, about raising EB-5 capital for the development of multi-family, hotel and healthcare properties.”