EB-5 Boom: Behring's 39-Story Tower Spurs 300% Investor Surge

Key Takeaway

• Colin Behring's EB-5 projects, including a 39-story tower in Oakland, show strong growth with a nearly 300% increase in investor interest post-litigation victories.
• EB-5 financing is gaining traction again as a crucial source of funding amidst financial uncertainties, with Behring Companies leading with a solid track record.
• Future legislative policies expected post-2027 could further boost the EB-5 program's contribution to job creation and capital investment.

EB-5's Resurgence and the Future of Urban Development

Colin Behring, a prominent figure in the EB-5 investment world, has recently made headlines by successfully challenging the U.S. government's attempts to curtail the EB-5 program, a critical pathway for foreign investors to gain U.S. residency through substantial investment in job-creating projects. This victory not only revitalized the EB-5 program but also significantly boosted Behring Companies' visibility and operations, with their latest project, 1900 Broadway in Uptown Oakland, showcasing the potential of EB-5 investments in transforming urban landscapes. Behring's strategic litigation has led to a nearly 300% growth in their program, highlighting the critical role of EB-5 financing in urban development and the broader implications for the real estate market.

A Generational Investment in Oakland

The 1900 Broadway project, a 39-story tower located strategically above the 19th Street BART Station, represents a long-term vision for urban development, emphasizing the importance of location and infrastructure in real estate investments. Despite initial rent projections being off by 15 to 20% due to the unforeseen impacts of COVID-19, Behring remains optimistic about the project's future, citing the lack of new constructions and the inevitable push towards higher rents due to supply and demand dynamics. This perspective underscores the resilience and potential for growth in the urban real estate sector, even in the face of global disruptions.

The EB-5 Program: A Catalyst for Urban Transformation

Behring's insights into the EB-5 program's evolution post-financial crisis and its current trajectory suggest a maturing market with increased barriers to entry, favoring established players with a proven track record. The program's resurgence, particularly in the context of recent economic uncertainties, positions EB-5 as a vital source of financing for urban development projects. Behring's emphasis on the program's role in job creation and economic impact, coupled with legislative improvements in 2022, points to a promising future for EB-5 investments in contributing to urban growth and development.

Mixed-Use Developments: A Trend Towards Urban Integration

Parallel trends in urban development, as seen in the transformation of South Florida malls into mixed-use havens, align with Behring's vision for the EB-5 program and urban real estate investment. The shift towards creating integrated living, working, and leisure spaces reflects a broader market evolution towards multifunctional urban landscapes. Projects like the Southplace City Center in South Florida exemplify this trend, offering a blend of residential, commercial, and leisure spaces that cater to modern lifestyle demands and contribute to the vibrancy and sustainability of urban centers.

Management Quotes

• Colin Behring, CEO of Behring Companies:

  "It was a little nerve racking for our investor base and the entire EB-5 industry as a whole." "A lot of new investors that saw the program open again knew exactly who we were, because we were the reason the doors were open again. Our program and our platform probably grew nearly 300 percent after that." "We’re about 25 percent full on 452 units after six weeks of effort, and rents are 15 to 20 percent off what we expected when we first started planning the project." "The world has changed since COVID, that’s easy to identify. However, we were the tail end of the cycle when we started construction at the end of 2019 and everything after us was effectively put on hold. There is nothing new coming. What you have is what you get, and once that’s filled up, supply and demand will push rents higher." "When you have certain products that are quick to build, quick to just prop up and quick to deploy, you can be a little more focused on trying to time the market. But we have a 39-story tower..." "I think the whole market is actually going to see rent increases soon across the board. We are not building enough housing and there’s still economic growth." "2025. I think that’s where you start seeing headlines about the supply crisis." "We never launch an EB-5 project that doesn’t have ability to stand on its own...EB-5 helps you do it faster..." "...the EB-5 world has grown tremendously and matured...Now it's hard want try somebody new when you have group track record like ours..."> "I was living in China in 2010...So after enough those projects not being able help anybody...Eventually ended creating regional center [promote program]."> "There different ways actually start program less than $800000...our company affiliate lends money for EB-5 investment if they need it."