Funding

Funding Needed
$45.5 (Mio)
EB5 Funding
$13.5 (Mio)
EB-5 Investors
27
Investment Amount
$500,000
Subscription Fee
60,000+
Discount Fee
60,000+

Jobs

Job Creation per Investor
23.4
Job Creation (Total)
633 (2.34:1) Jobs Coverage Ratio
Category
Real Estate and Rental and Leasing
Sub-Category
Lessors of Nonresidential Buildings (except Miniwarehouses)

Investment

Structure
Loan
Expected Maturity
5 Year( 60 Month)
Expected Return
1 % annually (.20% Independent Fund Management & Reporting Fee, .25% Annual Yield to Investor and remainder for Accounting Expense & Fund Manager )
Principal equity in project?
Yes

Immigration

Does this project have approved I-526's?
No
Does this Regional Center have approved I-526's?
No
Does this Regional Center have approved I-829's?
No

Location

State
Indiana
Location
21200 Greenfield Road Oak Park, MI 48237

1 like

Michael Hart

21 followers

Igor KasyanchukMichael GibsonKate KalmykovJennifer HermanskyLaura ReiffJeffrey CarrChris WhiteDave  SnyderMatt  HufferChad  BaileyKarl  KrauterThomas  DakichKieu Anh DoJames  LeLaura RuggieroJackie LeeRAHUL DAVESonal ChoksiMichael HartuserAndre Voget

Last Update: September 07, 2016 11:20 PM

Your Project was viewed 429 times (totally).

For the last 7 days 0 times.

FedEx Ground Facility

Level 1 full opacity small

Verified Project Crowd check verified seal small Impactdatasource verification logo small

Opened: February 15, 2016

Closed: September 01, 2016


Developer Name
Scannell Properties

Project Description

A state-of-the-art treatment facility in Oak Park Michigan, a suburb of Detroit. Detroit is the Midwest's 4th largest city and the largest city on the US/Canadian Border. 100% Leased to FedEx Ground and guaranteed by FedEx Corporation (S&P Investment-Grade Rating of BBB) (NYSE:FDX) Primary Lease Term 15 Years with 3 - Renewal Options - Occupancy & Lease Commencement - June 1, 2016 Build to Suit Single Tenant Occupancy; FedEx Ground Package System, Inc.; Construction Commencement-Completion: June 2015 - May 2016; Federal Express Occupancy & Lease Commencement: June 1, 2016; Site 54 Acres; Building Size 303,485 sf; Annual Rent: $2,928,318

Project Timeline

Under Construction and Scheduled for Completion May 1, 2016
Architectural & Engineering Design - January 30 - April 1, 2015
Order Metal Building - April 1, 2015 - N/A
Site Clearing & Rough Grading May 1 - August 31, 2015
Excavate Foundations August 15 - September 15, 2015
Pour Footings September 1 - October 15, 2015
Form/Pour Foundations September 1 - October 15, 2015
Stone & Grade Yard/Parking Areas September 1 - November 1, 2015
Deliver Metal Building September 15 - October 1, 2015
Steel Erection September 15 - November 11, 2015
Pour Slab on Grade September October 15, 2015
Roof and Wall Construction November 1 - December 1, 2015
Install Overhead Doors November 14 - January 1, 2016
Install Exterior Concrete November 1 - December 15, 2015
Material Handling Installation Commencement January 1, 2016N/A
Drywall/Finishes January 1 - April 1, 2016
Telecommunications Requirements January 30 - April 1, 2016
Fine Grading/Landscaping April 1 - May 31, 2016
Finish Work April 15 - May 31, 2016
Certificate of Occupancy May 1 - June 1, 2016
Rent Commencement June 1 - End of Lease - May 2031

Reports

FedEx Ground Facility: Contact Information

Chad Bailey
Contact Person
Chad Bailey
Address (contact)
8555 North River Road Ste 220
Phone
317-410-8363
Email
info@AmericanVIP.us
Web Site
www.americanvip.us

Project Management

First NameLast NameTitle
Scannell PropertiesProject Manager

FedEx Ground Facility: Investments

Reg. D?
Yes
Rule 506
506 (c)
Reg. S?
No
Investment type
Loan
Total amount of estimated funding required for all phases of development(in Millions)?
45.5MM
Number of planned phases (projects) in development?
1
Expected time to complete this project or phase of overall development?
6 - 12 months
Is this a new commercial enterprise or purchase of an existing troubled business?
New commercial enterprise
What ratio of equity to debt would best classify the source of overall funding for the project / development?
less than 25% equity : +75% debt
What percentage of overall funding has been raised to date?
more than 75%
Does the investor need to be accredited to invest?
No
What are the expected financial returns for this project?
1 % annually (.20% Independent Fund Management & Reporting Fee, .25% Annual Yield to Investor and remainder for Accounting Expense & Fund Manager )
On what premise are those projections made?
Contracted in the Subscription Loan Agreement in the Private Placement Memorandum.
Are returns paid on the investment prior to maturity?
Yes
If Yes, when are they paid?
Annually
Can you describe in more detail how returns are paid, and under what conditions? For instance, are they only paid if the project is positive cash flow or profitable. What expenses must be accounted for and paid prior to distributions are paid to investors?
Generally, distributions from the Fund may be made at any time as determined by the Fund Manager. The Fund Manager will be entitled to withhold from any distribution, at its discretion, appropriate reserves for expenses and liabilities of the Fund, as well as for any required tax withholding.
Can you please describe the expected exit strategy and what source(s) of debt or equity are expected to be used to repay the investor’s capital investment?
Refinance existing debt or sale of property.
Can you please describe the procedure for allowing the investor to sell his interest in the investment and who the buyer might be?
Non-Managing Members will not be permitted to transfer, sell, assign, encumber or otherwise dispose of all or any portion of the Interests except under limited circumstances, without the prior written consent of the Fund Manager, which may be granted or withheld in the Fund Manager’s sole discretion.
What is the expected term of the investment?
5 Year( 60 Month)
Can you describe what procedures are in place If the investor needs to liquidate his position before the contracted maturity date of the agreement, and what penalties may be imposed?
If so requested by a Non-Managing Member, the Fund, as set forth in the Fund Operating Agreement, will return (or cause to be returned) his or her Commitment (without interest), and to the extent not already expended, the Fund may, in its sole and absolute discretion, also return the unexpended portion of the Administrative Fee.
How is the value of the investment, once the investment has been made, measured?
Existing Real Estate Appraisal Valuation using the Income Approach subject to the 15 year Lease already in place. Rental installments from Federal Express will commence June 1, 2016.
Have these strategies been used by the Regional Center principals, or project managers in the past and what was the outcome?
This is American VIP Regional Center's introductory EB-5 project but this strategy matches the most credit worthy single tenant strategies in the market. Principals have utilized this strategy in past development projects with a high level of success.
Have all of the permits and permissions for project development been obtained?
Yes
Is there any patented intellectual property essential to this project?
No
Are there any other notes or comments to make regarding this investment that would be important for the Investor to know?
Federal Express ranks number 12 on the Fortune 500 List(as of 2014) They are the Single Tenant in a 15 year already executed lease. Occupancy of this building to commence June 1, 2016. Facility is currently under construction.

FedEx Ground Facility: Fees

What is the fee for subscribing to the investment (Subscription Fee)?
60,000+
Do potential investors need to pay a fee to obtain the operating documents, PPM or other subscription documents?
No
If Yes, Is that refundable in the event the investor decides not to invest?
No
Could you please describe the procedure for the return of any fees, or fees that are withheld?
Fees are returned less any incurred expenses
Could you please describe the procedure for return of escrow in the event of denial of the I-526 by USCIS?
Procedure is in place to return the Commitment plus any unexpended portion of the Administrative Fee. Administrative Fee is subject to petitioner acting in good faith during the process.
Does that include the processing of the I-526, I-829 or any other legal fees associated with the immigration application?
Yes
What is required for escrow payment at the time of submission of the I-526?
$500,000 plus all Project Funding Fees.
What is the policy for reimbursing the escrow payment in the event of denial?
Full Commitment returned plus any unexpended portion of the Administrative Fee.
What fees do you pay to 'finders' or agents?
Negotiable Sales Commission
If there is no finder or agent, would you reimburse that fee to the investor?
No
Do you pay finder’s fees to attorneys?
No
Do you pay fees to unlicensed broker’s or agents?
No

FedEx Ground Facility: Risks

Risk Factors

Risk FactorDescription
MinimalSingle Tenant Occupancy; FedEx Ground Package System, Inc.; Construction Commencement-Completion: June 2015–May 2016; Federal Express Occupancy & Lease Commencement: June 1, 2016; Site 54 Acres; Building Size 303,485 sf;
What strategies are you employing to mitigate those risks?
Creditworthy Single Tenant Facility with Executed Lease.
Can you please describe what conditions could occur that would negatively affect the ability to repay the investors?
Project is currently under construction and Tenant (Federal Express) has already executed the 15 year lease. Strongest ability for successful completion of investment.

FedEx Ground Facility: Structure

Has the Principal invested their own equity in the project?
Yes
Can you identify the terms and conditions of the offering, including the interest and repayment details?
Interest Only Loan 60 Month Term with 3 12 month options to renew. 1% interest annually. .75% management fee. .25% Yield to Non managing members.
What will the funds be used for (ie. infrastructure development of existing military base, development of a film studio, etc)?
Build to Suit Single Tenant Occupancy. Federal Express Ground Facility.
Are financial statements or records available from the borrower?
Yes
Is collateral on the investment or loan provided?
No
What would best describe the investment structure of the project?
Limited Liability Corporation (LLC)
What percentage of the investment will be made by the General Partners, Regional Center or Project Principals?
10%-25%
What would best describe the Principal's oversight of the project?
Day to Day, direct oversight

Capital Stack Table

TypeName of Financial InstitutionAmountTerms
DebtUS Bank29MM plus Fees and Capital total $33,892,000CommittedInterest Only based on One Month Libor maturity June 5,2017 with a 12 month extension option.

FedEx Ground Facility: EB-5

Is this a loan?
Yes
If the investment into the project is a loan, is the borrower a:
Commercial third party (not related to Regional Center principals)
Can you best describe your operating procedure for the filing of the I-526?
You will select, or offer to the foreign national, an attorney, or list of attorneys that are approved to submit for you
Does this project have approved I-526's?
No
Does this project have approved I-829's?
No
Does this Regional Center have approved I-526's?
No
Does this Regional Center have approved I-829's?
No
Is any of the subscription fee refundable in the event of a denial of the I-526 by USCIS?
Yes
What percentage of overall funding is expected to be sourced from EB-5 investors?
translation missing: en.percentage_funding_from_investors.25_50
Are non EB-5 investor’s allowed to participate?
No

Project Exemplar Approval

Does this Project have Exemplar Approval?
No
Date of Exemplar Approval:

Requests for Evidence

Does this Project have Exemplar Approval?
No

I-526

I-829

This data was last updated on:July 23, 2015 10:15 AM

FedEx Ground Facility: EB-5

Has this project been the subject of a USCIS/SEC/FBI/DOJ/AAO Review, Notice, Investigation or Action
No

This data was last updated on:July 23, 2015 10:15 AM

FedEx Ground Facility: Job Creation

Is Regional Center located within a Targeted Employment Area (TEA)?
Yes
Is this a Public / Private partnership?
No
Job creation methodology
Redyne / REMI
Does the job creation rely on direct jobs, capital expenditure, or a combination?
Combination
How many jobs are expected to be created in total? (Direct)
633
How many jobs are expected to be created in per investor? (Direct)
23.4
How are jobs allocated to the pool of investors?
Jobs will be allocated to the Non-Managing Members in the order in which each Non-Managing Member’s permanent residency commences.

FedEx Ground Facility: Reporting

Do you offer periodic reports to investors on the status of the investment?
Yes
If so, what is the frequency of these reports?
Annually
Are these reports produced by you, or by an independent third party such as a auditing or accounting firm?
Yes
Do you have a third party firm that performs employee payroll & HR record keeping services for the project?
No
If Yes, can you provide the name of that firm?
N/A
Do you have a third party firm that performs I-9 verification?
No
If Yes, can you provide the name of that firm?
N/A
If No, do you perform I-9 verification of the employees?
No
Would you have any objection to an accounting or law firm performing an audit on the payroll, employment or financial records of the project?
No
If you lease space in your facility to third party firms, are they willing to allow an audit of their employment records for the purposes of verifying employment?
No

Files & Documents

FedEx Ground Facility : Escrow

Escrow: Yes

 Peapack-Gladstone Bank, as escrow agent, administered by NES Financial Corp. and its affiliates, and released to the Fund or returned to prospective investors on the occurrence of certain events described in the investor’s subscription documents.

  • $400,000 (representing 80% of the Commitment) will be released from the Escrow Account to the Fund promptly following the Non-Managing Member’s filing (rather than approval) of his or her I-526 Petition with the USCIS (each, a “Pre-Approval Release”); and $100,000 (representing the remaining 20% of the Commitment, the “Holdback Amount”) will be released from the Escrow Account to the Fund promptly following the USCIS’ approval of the Non-Managing Member’s I‑526 Petition; provided that the Holdback Amount shall be subject to possible early release prior to a Non-Managing Member’s I-526 Petition approval.
  • Notwithstanding the foregoing, no Pre-Approval Release will occur until at least thirteen (13) investors have each deposited his or her Commitment of $500,000 in the Escrow Account for an aggregate amount of $6,500,000 (the “Pre-Approval Release Threshold”), except upon receipt of the USCIS’ approval of a Non-Managing Member’s I-526 Petition.

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.