BETHESDA, MD—Locally-based Phillips Realty Capital expects to end this year with $1.4 billion or so in transactions. A few of these deals were financed with EB5 capital, an intriguing new source of funding for commercial real estate projects.
One example is MRP Residential and Florida Rock Properties' Capitol Riverfront mixed-use project, which has closed on a total of $82 million of construction financing for their Capitol Riverfront mixed-use project. Of that amount, $17 million in the form of preferred equity has been provided via EB5 capital, arranged by Phillips Realty.
Another example is Doug Jemal's spec project at 1000 F St., CFO Joe Tilley tells GlobeSt.com. "Our EB5 capital group will be providing that funding for that project as well," he says.
Phillips Realty launched the group at the beginning of 2013, and has since raised and deployed more than $120 million in transactions, explains John Sieber, principal. The company has relationships with some 250 foreign investors under this program, he tells GlobeSt.com. "We have term sheets in various stages of raising capital for another $100 million."
Indeed the company's pipeline is filled through 2015 and now the company is looking for transactions in the latter part of 2015 into 2016. "Demand is very strong for this product," Sieber says.
For a look at Phillips Realty's entire platform read part 1 of this article.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
