Seventeen EB-5 real estate raises sought $432.2 million at $800,000 a check

Seventeen offerings with EB-5 in their names filed or amended Form Ds between Oct. 4 and Nov. 2, asking for $432.2 million combined ^[5]. Every one set an $800,000 minimum, and 16 claimed Rule 506(c) ^[5].

They had sold $143.2 million to 179 investors, exactly $800,000 apiece, by our math ^[5].

USCIS sets the EB-5 investment at $1,050,000, or $800,000 in a targeted employment area or an infrastructure project ^[1]. A targeted area is a rural area or one with high unemployment ^[1].

Two sponsor groups account for most of the money sold

Eight EB5AN multifamily partnerships based in San Juan, Puerto Rico, reported $82.4 million from 103 investors against $191.2 million sought ^[5]. Their funds carry the names of Houston, Granbury, Brandon and Terra Ceia ^[5].

EB5AN Granbury Multifamily Fund 45 has sold $17.6 million of $30.4 million to 22 investors since its first sale in April ^[2].

Three PG EB5 lenders in Atlanta reported $47.2 million from 59 investors ^[5]. The newest, PG EB5 Oconee Lender, made its first sale Oct. 29 and reported $2.4 million from three investors toward $61.8 million ^[3].

Oconee lists Peachtree Hotel Group II as an affiliate of its manager and names Peachtree PC Investors as its paid seller, soliciting in all states and abroad ^[3].

Four EB-5 funds had reported no sales

EB5 Capital Jobs Fund 48 in Bethesda, Md., filed Oct. 14 for $40 million under Rule 506(b) and reported no sales ^[4]. Two EB5AN Houston funds, numbers 51 and 52, and San Bruno EB-5 Fund in California also reported none ^[5].

How to use this

For developers weighing EB-5 capital

1. Size the raise in $800,000 units and plan for a long sale. Granbury 45 needs 38 investors to reach $30.4 million and had 22 after about seven months ^[2].
2. Check whether the project qualifies as a targeted employment area or an infrastructure project before you price the raise, because otherwise the required amount is $1,050,000 ^[1].
3. Plan your marketing calendar around Jan. 1, 2027, when USCIS says the investment amounts automatically increase ^[1]. The increase could change what a new investor has to commit after that date.
4. Disclose any affiliate that receives the loan or equity, as Oconee did by naming Peachtree Hotel Group II ^[3].

For advisers to EB-5 investors

1. Compare the amount sold with the target on the Form D. These 17 offerings had sold 33% of their combined target, by our calculation ^[5], so ask how the project is funded until the raise fills and what happens to your money if it never does.
2. Ask whether the fund lends to the project or owns part of it. The three PG EB5 vehicles are set up as lenders, while the EB5AN funds are partnerships named for multifamily projects ^[5], and the two structures put an $800,000 investment in different positions if a project falls behind.
3. Look up the paid seller on FINRA BrokerCheck. Oconee lists Peachtree PC Investors with CRD number 301004 ^[3].