The commercial real estate industry as a whole saw over $1 trillion worth of transactions globally in 2013. Higher tax rates spurred an increase in the volume of 1031 exchange activity.
The EB-5 sector continued to experience explosive growth, with over 140 Regional Centers being approved by the USCIS. As a result, it is safe to say that EB-5 investment funds are now viewed as a mainstream source of capital, driving a growing number of large marquee real estate developers to take advantage of this alternative. This rate of growth has also led to an increased emphasis on regulatory compliance and oversight.
As a result, EB-5 issuers are implementing solutions that support industry best practices and improve operational efficiency. NES Financial’s purpose-built EB-5 escrow and fund administration solutions (that track funds through the life cycle of an investment) were well received in the market. The 1031 exchange industry continued to value our commitment to security, transparency, and compliance. Having safely processed more than $80 billion in exchange funds in 2013, we maintained our position as the largest independent qualified intermediary (QI) in the country.
Some key achievements in 2013 include:
- Industry recognition. NES Financial was selected as the 2013 EB-5 Service Provider of the Year by Artisan Business Group.
- Reinforcement as EB-5 market leader. We announced our 150th EB-5 project this past July, a milestone that is unmatched in the industry.
- Expansion of product line. We supplemented our EB-5 Escrow solution with a comprehensive EB-5 Fund Administration solution that enables the tracking of funds throughout the entire immigration process. The resulting solution suite has already been widely deployed and is setting the industry benchmark.
- Strong presence in the 1031 exchange market. NES Financial is the leading independent QI in the industry, having conducted more 1031 exchanges for Fortune 500 companies than any other QI. In 2013, we safely processed more than $80 billion in 1031 exchange funds.
- Ongoing commitment to compliance. We successfully completed and received our 8th consecutive compliance audit certification.
2014 is off to a strong start. NES Financial has already introduced another EB-5 solution, EB-5 Immigration Workflow, which was introduced to rave reviews in our recent cross-country seminar series for EB-5 issuers, and we already signed our 200th EB-5 project earlier this year.
As always, we appreciate the opportunity to work with each of our clients and look forward to mutual success again this year.
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NES Financial welcomes your questions and opinions. Allow us to address your business needs by contacting us. We look forward to hearing from you!