Cold temperatures and snow of early December did not deter the crowds from the ICSC New York Dealmakers Conference at the Jacob K. Javits Convention Center in New York City. Over 9,000 business professionals came to secure leases, review site plans, and seek capital for new retail developments. Keynote Speaker Donald Trump observed that “brick and mortar” retail is still the dominant sales venue and posited that growth in online sales appears to simply supplement physical retail sales – not compete.
Our team from NES Financial met with clients and prospective clients at a booth in the Finance Pavilion, where we were able to discuss a broad range of subjects – including EB-5 and 1031 exchanges.
Hot topics voiced by attendees at our booth included:
1) Retail developers are interested in utilizing the EB-5 program as a capital source but are seeking favorable escrow structures from NES Financial and banking partners. A percentage of EB-5 capital subscriptions must be available within a reasonable time period after fund raising to cover soft costs of a project. The timing of capital flow is a balancing act and requires using collaborative banking partners and experts in EB-5 Administration like NES Financial.
2) Must a project sponsor use a ‘Regional Center’ in order to utilize EB-5 capital? Our team explained that the short answer is no. While the Regional Center model is the most popular EB-5 model, direct investment is also an option if the project generates enough jobs. Our team offered to connect project sponsors and developers with economists who can help ascertain the best approach for their project.
3) Texas growth is unabated. Several drivers of Texas economic expansion are fueling development, recapitalization, and retail expansion. While the energy sector is certainly one source of growth, manufacturing, shipping, and healthcare are also major employers.
4) Developers who had never used EB-5 capital were excited to read our article by Reid Thomas and learn that EB-5 can lower the total cost of capital in a job-creating project. As a result of the ICSC meetings, NES Financial is helping several developers facilitate their first EB-5 project.
5) Some attendees noted they are conducting 1031 exchanges but don’t necessarily know where their money is being held. Our team noted that several people describe having open 1031 exchange transactions but don’t know the Qualified Intermediary (QI) for the transaction, or more importantly – why having a good QI matters. NES Financial’s in-house 1031 expert William Lopriore, Esq., was in attendance, and suggested that clients should conduct research about their QI beforehand but that NES Financial can provide some help “midstream.” William noted that the QI can – and often is – the difference between a successful 1031 exchange and an unsuccessful one.
6) New York is magical in December! Our team visited the Macy’s on 34th Street and holiday trees at Rockefeller Center and Bryant Park. We were enamored and highly recommend a shopping visit to New York for the holidays. Alright ICSC team, we truly get why you chose New York in December.
Whether raising capital for real estate development through the EB-5 program, addressing broad fund administration needs, or managing complex 1031 transactions, NES Financial delivers the expertise and customized solutions to meet the business needs of real estate owners and developers. Our services increase transparency, facilitate security of investor capital, and increase compliance with regulatory requirements – all of which reduce risk.
NES Financial welcomes your questions and opinions. Allow us to address your business needs by contacting us. We look forward to hearing from you!