Posted on 11/05/2009 10:15:40 AM PST by whitedog57
Hot Money HIGHLIGHTS New Financing Source Tied to Immigration Providing "Cheap Equity" for Development Projects in LA This program was started by congress in 1990 to allow high net worth foreign individuals to invest in the US and thereby qualify for citizenship. Segregated by industry and geography. “Pilot” program allows for a regional center to pool these investors. Equity wants only 5-8% yield, so is priced like debt. Program Highlights: LA County only; Census tracts with 150% of national average unemployment rate Construction is best; Hotels, manufacturing, retail, medical office/hospital, and ALF/SNF; This zone specifically targets medical and ALF/SNF; Multifamily projects are not eligible (does not create jobs); Project must create at least 10 long-term jobs, either directly or indirectly; Can fund projects with 100% equity, or levered.
Transaction Size: $1,000,000-$30,000,000 Geography: LA County
Technically, it is to build health-care related facilities.
But given Congress’ corruption and ineptitude, what are the odds that housing will slip into the mix?
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