Firm taps into immigration program to fund D.C. project

By Jonathan O'Connell             http://tinyurl.com/26sqp6t
Monday, August 16, 2010; 4

Underdeveloped D.C. neighborhoods are on the verge of reaping millions
of dollars in new investments from an unlikely source: wealthy
foreigners in search of visas.

A federal immigration program that grants foreigners immigration visas
in exchange for investments in American businesses is bringing $5
million to a long-awaited new Giant grocery store and mixed-use
development in the city's Shaw neighborhood and also plans to finance
the creation of a locally backed food store in Anacostia.

The EB-5 program grants visas to foreign individuals who make
investments of $500,000 to $1 million that produce at least 10 American
jobs. Though created in 1990, interest in it has soared recently, with
74 enterprises nationally and three in D.C. registered to accept
investments. The resulting number of EB-5s issued nationally jumped from
1,443 in fiscal 2008 to 4,218 in fiscal 2009.

One of the local enterprises was founded by Angel Brunner, previously an
official in the city's former public-private development arm, the
National Capitalization Revitalization Corp., and at Fannie Mae, where
she managed investments in underserved communities.

Brunner has assembled at least $5 million in commitments from foreigners
interested in emigrating that she is putting into Roadside Development's
CityMarket at O, a $260 million, 1 million-square-foot development
planned for the two-block area between 7th and 9th streets and O and P
streets in Northwest D.C. With that commitment, and a more than $100
million housing loan from the Department of Housing and Urban
Development, Roadside has scheduled a groundbreaking for the project
Sept. 1, after years of delays. The first phase will include 395
apartments, a new 71,000-square-foot Giant store and a 180- to 190-room
limited-service hotel.

"We provide capital that can put projects over the finish line," Brunner
said. The responsibility of her and her partner, immigration lawyer
David M. Morris, once construction starts will be to ensure that the
project creates jobs at the Giant and the hotel, so her investors will
receive their visas. She said she expects the project's grocery store
and retail components to create 400 jobs and indirectly lead to another
1,500 in the area.

Armond Spikell, a partner at Roadside, said Brunner was providing early
stage equity, which is not easy to come by for new construction in
emerging markets. After researching the program, he said he realized it
made sense for the Shaw development and was surprised not to have heard
of it before. "If we're going to grow immigration, why not do it in a
way that brings jobs and investment to the country?" he said.

Brunner -- whose company is named EB-5 Capital, after the visa program
-- began with a $20 million investment in a Vermont ski resort but is
now focused on job-producing projects in the District. She said she
could ultimately place up to $100 million locally and that when she
travels the world talking to investors, there is intense interest. "My
constraint right now is qualified projects that are ready to break
ground; that's what I'm looking for," she said.

She is on the verge of her next deal already. She and the Anacostia
Economic Development Corp., a nonprofit that is another registered
regional EB-5 center, are working on a plan to bring a locally grown
foods grocer to Anacostia. Negotiations for a property and operator are
underway.

"Grocery stores are ideal projects, especially in Washington," she said.
"Washington residents have half the number of grocery stores that our
suburban neighbors have. Any time there is a grocery store in play, it's
a good opportunity for us."

https://www.washingtonpost.com/wp-dyn/content/article/2010/08/13/AR201008130
5463_pf.html



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