Funding

Funding Needed
$67.2 (Mio)
EB5 Funding
$15 (Mio)
Amount Subscribed
$11 (Mio)
EB-5 Investors
30
Investment Amount
$500,000
Subscription Fee
50,000
Discount Fee
15,000

Jobs

Job Creation per Investor
19.5
Job Creation (Total)
585.2
Category
Construction
Sub-Category
New Multifamily Housing Construction (except For-Sale Builders)

Investment

Structure
Loan
Amount of EB-5 investors anticipated for this phase?
Up to 36 for Phase 1. No minimum number required.
Expected Maturity
5 Years
Expected Return
Class A EB-5 investors entitled to preferred return of 2% P.A. plus 60% of net remaining profits after Fund expenses (Pre-tax)
Principal equity in project?
Yes

Immigration

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

Location

State
Maryland
Location
3807 & 4100 Rhode Island Avenue in Brentwood, Maryland

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Deepa RamchandranMichael KolodnerMichael SearsuserPeter  S. SiegelInanc KirgizErin GuanAlessandro RosanioSiddhartha JonnalagaddauseruserGautam PuserGurnimrat Kaur

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Artists Row: Studio 3807 and The Artisan

Verified Project Crowd check verified seal small Impactdatasource verification logo small

Opened: February 16, 2017

Closed: February 01, 2021

Funded: 16.4%


Developer Name
LANDEX DEVELOPMENT LLC

Project Description

Artists  Row  (also  known  as  Studio  3807  and  The  Artisan)  will  be  a  mixed-use  community located  in  the  Washington,  DC  metropolitan  area.  The  two buildings  are  being  developed  as part  of a Public-Private  Partnership  (PPP)  between  the government  of  Prince  George’s County,  Maryland and Landex Development,  LLC  (Landex), a  well-capitalized,  30  year  old real   estate   development   company   that   specializes   in   public-private   partnerships (the “Developer”). Landex was selected by the government through a competitive process, over other development  companies  because  of  its  experience,  capitalization, and  commitment  to  strong community partnerships.

Artists  Row  will  be  a  multi-phased  development.  Phase  1  (Studio  3807)  is  located at  3807 Rhode  Island Avenue  in  Brentwood,  Maryland  in  the  center  of the Gateway  Arts  District. The site preparation work for Studio 3807 began in September 2016, and the vertical construction is underway and progressing according to plan. When completed, Studio 3807 will consist of the following:

  • 147 apartment units
  • 193 garage parking spaces
  • Approximately 6000 square feet of retail space
  • Approximately 3000 square feet of artisan space

Phase 2 (The Artisan) is located at 4100 Rhode Island Avenue and is scheduled to start in the 2nd quarter of 2017.

The Artisan will consist of the following:

  • 84 apartment units
  • 137 parking spaces (covered and surface parking)
  • Approximately 5000 square feet of retail space

These  two  properties  will  be  the  first  new  developments  in  the Gateway  Arts  District.  The Gateway Arts District is adjacent to Washington, DC and encompasses the four communities of Hyattsville,  North  Brentwood,  Brentwood  and  Mt.  Ranier.  Gateway  is  a  central  point  for  art activities  of  all  types  and has  quickly become  a  popular  site  for  socializing,  entertainment, dining,  shopping,  and  living.  The  renaissance  of  the  Gateway  Arts  District  signals  a  dynamic growth  for Prince  George’s  County  and  the  surrounding  area,  which  offers  much  beauty  and function  to  its  current  and  new  residents. Artists  Row will build  on  the growth  of  the  area  by creating a new, unique opportunity for an artisan and residential experience. The artisan lifestyle and environment that is already present will be enhanced by these two developments

UPDATE- FEBRUARY 2019

Phase I of the Artists Row Project, known as Studio 3807, was substantially completed in Q4 2018 as schedule, and is currently in rent up. The lead development partner, The Landex Organization, reports that rent up and absorption of the retail, commercial and residential units is ahead of schedule.

Phase II of Artists Row, known as The Artisan, began construction as planned in Q2 2018, and is progressing on schedule. Financing for both phases is beeing provided through a combination of developer cash equity, including cash contributions from Prince Georges County, a JV partner in the project, together with conventional construction loan financing and bridge loans being provided by a regional commercial bank.

EB-5 loan proceeds being provided by Capitol Area Regional Center's CARc Job Fund-The Artists Row Project Loan Series, LLC, will be used to repay a portion of the bridge loans. Global Capital Markets Advisors, as manager of the CARc Job Funds, is continuing to accept new subscriptions for this USCIS pre-approved project from accredited EB-5 investors. Inquiries should be directed to either Michael Sears (msears@gcmafunds.com) or Michael Kolodner (mkolodner@gcmafunds.com). 

 

The project is EXEMPLAR APPROVED.

Project Timeline

The Project developer, Landex Development, has already secured first mortgage and bridge loan financing sufficient to fully fund Phase 1 of the Artists Row Project which, based on the independent econometric analysis of projected new job creation, can support new EB-5 visa petitions aggregating up to $18,000,000 for as many as 36 EB-5 investors. Phase 2 of the Project is projected to create additional jobs sufficient to support at least an additional 15 EB-5 investor petitions. Construction of Phase 1 of the Artists Row Project, at 3807 Rhode Island Avenue, began in September 2016, is progressing according to plan, and is expected to be substantially completed in Q1 2018. Phase 2 of the Project, located at 4100 Rhode Island Avenue, is expected to be similarly financed, is scheduled to begin construction in June 2017 and be substantially complete by Q4 2018.


Conversations

user
Need Additional Info.
Need additional info on this project. I am looking for verified EB5 investment projects.
Rahul Shah, November 13, 2017 12:45 PM [Answered] 1
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President / CEO
Our investment firm and partners would like to place a cash for this (EB5PROJECT-944) approved EB-5 visa commercial...
Larry Higgins, Presidnet / CEO The Investment Group, Inc., October 29, 2017 12:27 PM [Answered] 1

Reports

Artists Row: Studio 3807 and The Artisan: Contact Information

Michael Kolodner
Contact Person
Michael Kolodner
Phone
631-423-4290
Email
mkolodner@gcmafunds.com
Web Site
www.eb5dc.com

Project Management

First NameLast NameTitle
Michael SearsManaging Principal
Michael KolodnerManaging Principal

Artists Row: Studio 3807 and The Artisan: Investments

Reg. D?
Yes
Rule 506
506 (b)
Reg. S?
Yes
Investment type
Loan
Total amount of estimated funding required for all phases of development(in Millions)?
$67.162
Number of planned phases (projects) in development?
2
Expected time to complete this project or phase of overall development?
more than 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?
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?
Yes
What are the expected financial returns for this project?
Class A EB-5 investors entitled to preferred return of 2% P.A. plus 60% of net remaining profits after Fund expenses (Pre-tax)
On what premise are those projections made?
Loan from CARc Job Fund- The Artists Row Project Loan Series LLC (the "Fund") to developer of the Artists Row Project bears interest @ 5.0% P.A. Interest payable quarterly in advance from developer funded interest reserve held in segregated account of the Fund. Initial Loan closing occurred 2/17/2017. Phase 1 construction began Q3 2016. Phase 1 fully financed with equity from developer and Prince George's County, Eagle Bank 1st mortgage loan and bridge financing. Phase 2 construction expected, subject to completion of construction financing, to begin Q2 2017. Additional Loan advances for Phase 1 to be made by the Fund to developer as additional EB-5 subscriptions received. Maximum Fund Loan for Phase 1 is $18.0 million and up to $25.5 million if both phases constructed, with no minimum amount required.
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?
The Fund is investing in the Artists Row Project Loan, the advances on which accrue interest at 5.0% P.A. with principal due and payable upon maturity (2/14/2022). Upon the initial and each subsequent Loan advance, the developer is required to fund an interest reserve sufficient to pay interest on the outstanding balance of the Loan through the 4th anniversary of the initial Loan closing (dated as of 2/14/17) and thereafter, as necessary, to maintain the interest reserve in an amount sufficient to pay interest through maturity of the Loan. The Fund is entitled under the Loan Agreement to transfer from the interest reserve, quarterly in advance, the amount equal to the full amount of the quarterly interest on the outstanding Loan balance thereafter accruing. The Interest income received by the Fund will first be used to pay Fund Expenses, as defined in the Limited Liability Company Operating Agreement of the Fund, which include the fees and disbursements of the independent Fund Administrator, fees incurred by the Fund, if any, for legal, tax and accounting services, the Management Fee payable to the Manager of the Fund (@.5% quarterly), and other permissible Fund Expenses. Class A Members of the Fund, including all EB-5 Investor Members, are thereafter entitled to a 2.0% P.A. preferred return, payable from the realized income of the Fund net of such Fund Expenses, plus 60% of the income, if any, remaining after such payment (or provision for payment) of Fund Expenses and the 2.0% preferred return, and prior to the payment of any return to the Class B Member. The Class B Member of the Fund is an affiliate of the Fund Manager and is entitled to 40% of such income, if any, remaining after such payment (or provision for payment) of Fund Expenses and the 2.0% preferred return earned by the Class A Members of the Fund. The Fund expects to make distributions to its Members at least annually. The amount of Fund income available to make any such distributions is primarily dependent upon the size of the Fund and the amount of the Loan investments made by the Fund, which will vary as a result of the number of EB-5 investors in the Fund, particularly during the first three years.
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?
The Loan from the Fund is expected to be repaid from the proceeds of the refinancing of the Artists Row Project by the developer, which is anticipated to occur sometime between 3 and 5 years, after the rent-up period and stabilization of the Project. The Loan is not prepayable prior to maturity by the developer. The original maturity date of the Loan is 2/14/2022, but is subject to extension, at the option of the developer upon 90 days prior notice to the Fund and the payment to the Fund of an extension fee and the replenishment of the interest reserve through the extended maturity date, twice for successive 1-year extension periods.
Can you please describe the procedure for allowing the investor to sell his interest in the investment and who the buyer might be?
EB-5 investors are required to maintain their investment in at least the amount of the Minimum EB-5 Capital Requirement ($500,000), through the 5th anniversary of their investment. However, a Class A Member in the Fund who is no longer an EB-5 Member may notify the Fund and request that their Class A Units in the Fund be redeemed by the Fund on the first available date thereafter in accordance with the redemption provisions of the Fund. Any such redemption requests will be processed on a first come, first served, basis and will be subject to the availability of Available Cash and the other restrictions and conditions specified in the Operating Agreement of the Fund.
What is the expected term of the investment?
5 Years
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?
See above procedure for requesting early redemption of Class A Units.
How is the value of the investment, once the investment has been made, measured?
In accordance with the Operating Agreement of the Fund, the Manager is responsible to determine annually the amount of Class A Fund Equity. Each Class A Member of the Fund will own Class A Units in the Fund equal to $100 per Class A Unit, or fractional portion thereof. For example, each Class A Member who is an EB-5 Investor will have a Capital Account in the Fund that will initially be credited with 5,000 Units ( $500,000 Capital Contribution divided by $100/Class A Unit). Thereafter, the number of Class A Units in a Member's' Capital Account in the Fund will increase or decrease to reflect his or her allocable share of the Fund's subsequent Net Income or Loss.
Have these strategies been used by the Regional Center principals, or project managers in the past and what was the outcome?
Yes. Since inception. This is the same fund valuation structure that has been used by one of the principal owners of the Regional Center for many years in private real estate funds managed by such principal as a registered investment advisor. It is the same methodology in the basic limited liability company operating agreement of CARc Job Fund-I LLC, which has been approved by USCIS multiple times since its inception.
Have all of the permits and permissions for project development been obtained?
Yes
Is there any patented intellectual property essential to this project?
No

Artists Row: Studio 3807 and The Artisan: Fees

What is the fee for subscribing to the investment (Subscription Fee)?
50,000
Do potential investors need to pay a fee to obtain the operating documents, PPM or other subscription documents?
Yes
If Yes, Is that refundable in the event the investor decides not to invest?
No
If so, what is that Document fee?
$15,000 if Direct (No Agent), otherwise $50,000. Non-Refundable
Could you please describe the procedure for the return of any fees, or fees that are withheld?
N/A
Could you please describe the procedure for return of escrow in the event of denial of the I-526 by USCIS?
There is no escrow for the current Artists Row Project Loan offering. All subscriptions and payment of the full $515,000 (direct/ $550,000 if through Agent) go directly to the Fund and will thereafter be used to fund additional Loan advances to the developer.
Does that include the processing of the I-526, I-829 or any other legal fees associated with the immigration application?
No
What is required for escrow payment at the time of submission of the I-526?
There is no escrow for the current offering
What is the policy for reimbursing the escrow payment in the event of denial?
N/A.
What fees do you pay to 'finders' or agents?
Registered foreign agents and US registered B/D's Only- Up to $40,000 per investor
If there is no finder or agent, would you reimburse that fee to the investor?
Yes
What would be the procedure for reimbursing this fee?
Reduced Subscription Price from $550,000 to $515,000
Do you pay finder’s fees to attorneys?
No
Do you pay fees to unlicensed broker’s or agents?
No

Artists Row: Studio 3807 and The Artisan: Risks

Risk Factors

Risk FactorDescription
General Real Estate and market event related risksAs described in the Supplement & Private Placement memorandum relating to the offering of Class A units of limited liability company interest in CARc Job Fund- The Artists Row Project Loan Series, LLC
Can you please describe what conditions could occur in the market that would negatively affect profitability and commercial operations or job creation?
As described in the Supplement & Private Placement memorandum relating to the offering of Class A units of limited liability company interest in CARc Job Fund- The Artists Row Project Loan Series, LLC
What strategies are you employing to mitigate those risks?
As described in the Supplement & Private Placement memorandum relating to the offering of Class A units of limited liability company interest in CARc Job Fund- The Artists Row Project Loan Series, LLC
Can you please describe what conditions could occur that would negatively affect the ability to repay the investors?
As described in the Supplement & Private Placement memorandum relating to the offering of Class A units of limited liability company interest in CARc Job Fund- The Artists Row Project Loan Series, LLC
What strategies are you employing to mitigate those risks?
As described in the Supplement & Private Placement memorandum relating to the offering of Class A units of limited liability company interest in CARc Job Fund- The Artists Row Project Loan Series, LLC

Artists Row: Studio 3807 and The Artisan: 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?
Best efforts Reg D private placement offering of Class A units of limited liability company interests in CARc Job Fund- The Artists Row Project Loan Series LLC (the "Series Fund"). Proceeds of the offering, net of Fund Expenses, are used, pursuant to the terms and conditions of the limited liability company operating agreement of the Fund (the "Operating Agreement") to invest in a Loan to LDX Brentwood, LLC (the "Borrower"), a special purpose affiliate of the developer (Landex Development- www.landex.org- "Landex") and owner of a 71% controlling interest in MM Brentwood LLC, the managing member of Brentwood Development LLC, the owner of the property located at 3807 Rhode Island Avenue, Brentwood, Maryland, the site of Phase 1 of the Project being developed thereon (the "Owner"). Through LDX Brentwood and another of its controlled affiliates, Sea Eagle 3807 LLC, Landex owns the controlling interests in both the equity Owner of the Project and its managing member, and similarly owns or will own the controlling interests in Phase 2 of the Artists Row Project. Peter S. Siegel, the CEO of Landex, is the sole member of both LDX Brentwood, LLC and Sea Eagle 3807 LLC. Brentwood Development LLC is a public/private partnership between Landex and Prince Georges County Maryland which has made a cash investment in the Owner. The Borrower is required to invest the Loan proceeds received from the Fund in the development of the Artists Row Project, as more fully provided in the Loan Agreement, Promissory Notes, and Pledge and Security Agreement, between the Fund and the Borrower, all dated as of 2/14/2017 (collectively, the "Loan"). Under the terms of the Loan, the Borrower is required to borrow any and all amounts received by the Fund from EB-5 investors, up to the maximum Loan amounts of $18.0 million if only Phase 1 of the Project is developed in accordance with the business plan, and up to a total of $25.5 million, if both Phase 1 and Phase 2 are developed as contemplated in the business plan. The Loan bears interest at 5.0% per annum from the date of each Loan advance until the date of repayment thereof; is scheduled to mature (unless extended) on 3/1/2022. The Borrower has two one year extension options, as provided in the Loan, to extend the original maturity date for successive one year periods. The Loan is not subject to prepayment at the Borrower's option any time prior to the original maturity date. The Loan obligation is evidenced by Promissory Notes of the Borrower, in the amount of up to $18 million with respect to Phase 1 of the Project, and up to $7.5 million with respect to Loan advances, if any, over $18 million, and are further secured by a first priority lien and security interest in, and assignment to the Lender of, all of the Borrowers right, title and interest to Member distributions from the limited liability companies that own (or will own) both Phases of the Artists Row Project, and all proceeds from the disposition of the Borrower's membership Interests, however realized. Should there be an Event of Default, as defined under the Loan, the interest rate thereafter would accrue at 18% per annum until such time as the Event of Default is cured.
What will the funds be used for (ie. infrastructure development of existing military base, development of a film studio, etc)?
Development of the Artists Row Project as described in the business plan and in accordance with the terms and conditions of the Loan Agreement between the Fund and the Borrower.
Are financial statements or records available from the borrower?
Yes
Is collateral on the investment or loan provided?
Yes
If Yes, can you specify what the collateral is?
The Notes are secured by a first priority lien and security interest in, and assignment to the Lender of, all of the Borrowers right, title and interest to Member distributions from the limited liability companies that own (or will own) both Phases of the Artists Row Project, and all proceeds from the disposition of the Borrower's membership Interests, however realized.
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
If other, or a combination, can you provide details on who is overseeing the capital investment, job creation and ongoing operations?
Global Capital Markets Advisors, LLC, is the Manager of the Fund and is responsible for the origination of the Loan on its behalf and for the marketing, management of the Fund and oversight of the Borrower and its affiliates in connection with the Loan and the development of the Artists Row Project . Woodfield Fund Administration, LLC, 3601 Algonquin Rd., Rolling Meadows, IL 60008 (www.woodfieldllc.com), is an independent third party fund administrator and has day-to-day responsibility for overseeing the custody of Fund assets, including the capital contributions received from Fund investors, interest earning and other Fund Revenue received with respect to the Loan or otherwise, and for overseeing that all such Fund assets are administered strictly in accordance with the terms and provisions of the limited liability company operating agreement of the Fund.

Capital Stack Table

TypeName of Financial InstitutionAmountTerms
EquityPrince Georges County (MD) Revenue Authority$3,708,625 CommittedPhase 1 equity contribution was funded in cash prior to the start of Phase 1 construction
EquityPrince Georges County, MD Redevelopment Authority$805,000CommittedPhase 1 equity contribution was funded in cash prior to the start of Phase 1 construction
EquityBrentwood Development LLC$3,958,385CommittedFully funded in cash and deferment of development fee of $760,708 upon closing of the Phase 1 construction loan
DebtPrivate Mezzanine Lender {Confidential- will be disclosed to investors subject to confidentiality agreement$6 millionCommittedFully funded upon closing of the Phase 1 construction loan
DebtEagleBank$27.6 millionCommittedPhase 1 construction lender. Construction loan was closed and advances thereon have been funded in accordance with the loan agreement between Brentwood Development LLC, as borrower, and EagleBank. Project is under construction and met all conditions precedent required by EagleBank for the construction loan closing.
DebtCARc Job Fund - The Artists Row Project Loan Series LLCUp to $18 million- Phase 1 and up to $7.5 million - Phase 2ExpectedInitial Artists Row Project Loan closing occurred on 2/17/2017., whereupon the Fund advanced the initial $1.2 million to the Borrower. The Borrower is required to accept additional Loan advances of up to an aggregate of $18 million with respect to Phase 1 only of the Project, and up to $25.5.million if certail Loan conditions precedent relating to the development and start of construction of Phase 2 are met, after notice from the Fund, as additional EB-5 investors subscribe, with no minimum amount of such Loan advances required.
EquityPrince Georges County (MD) Revenue Authority$3,708,625 CommittedPhase 1 equity contribution was funded in cash prior to the start of Phase 1 construction
EquityPrince Georges County, MD Redevelopment Authority$805,000CommittedPhase 1 equity contribution was funded in cash prior to the start of Phase 1 construction
EquityBrentwood Development LLC$3,958,385CommittedFully funded in cash and deferment of development fee of $760,708 upon closing of the Phase 1 construction loan
DebtPrivate Mezzanine Lender {Confidential- will be disclosed to investors subject to confidentiality agreement$6 millionCommittedFully funded upon closing of the Phase 1 construction loan
DebtEagleBank$27.6 millionCommittedPhase 1 construction lender. Construction loan was closed and advances thereon have been funded in accordance with the loan agreement between Brentwood Development LLC, as borrower, and EagleBank. Project is under construction and met all conditions precedent required by EagleBank for the construction loan closing.
DebtCARc Job Fund - The Artists Row Project Loan Series LLCUp to $18 million- Phase 1 and up to $7.5 million - Phase 2ExpectedInitial Artists Row Project Loan closing occurred on 2/17/2017., whereupon the Fund advanced the initial $1.2 million to the Borrower. The Borrower is required to accept additional Loan advances of up to an aggregate of $18 million with respect to Phase 1 only of the Project, and up to $25.5.million if certain Loan conditions precedent relating to the development and start of construction of Phase 2 are met, after notice from the Fund, as additional EB-5 investors subscribe, with no minimum amount of such Loan advances required.

Artists Row: Studio 3807 and The Artisan: 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?
The foreign national is free to choose their own attorney with no review from 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?
Yes
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?
No
Amount of EB-5 investors anticipated for this phase?
Up to 36 for Phase 1. No minimum number required.
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?
Yes
If so, what is the expected ratio of EB-5 to non EB-5 investors expected to be?
3:1 or greater
Can you please explain if EB-5 and non EB-5 investors treated equally in the distribution of dividends and profits?
Yes. All investors in CARc Job Fund- The Artists Row project Loan Series LLC are Class A investors in the fund and treated equally as to dividends and profits.
Under what circumstance(s) would EB-5 investors be expected to contribute additional capital to the partnership or the project?
None. There is no obligation to provide additional capital after making the required initial capital contribution.

Project Exemplar Approval

Does this Project have Exemplar Approval?
Yes
2017-11-22
Date of Exemplar Approval:

Requests for Evidence

Does this Project have Exemplar Approval?
No
Please describe the issues brought up in the RFE and response to the Request
N/A

I-526

I-526 Approved:
0
Date of first I-526 Submission:
2013-02-01
Date of first I-526 Approval:
2014-02-10
I-526 Revoked:
0

I-829

I-829 Denial:
0
I-829 Revoked:
0

This data was last updated on:December 14, 2017 12:26 PM

Artists Row: Studio 3807 and The Artisan: EB-5

Has this project been the subject of a USCIS/SEC/FBI/DOJ/AAO Review, Notice, Investigation or Action
No
The result of the review, investigation and action
I-924 was submitted to USCIS on 9/30/2016 requesting pre-approval of the Artists Row Project. No response from USCIS as of 3/1/2017.

This data was last updated on:December 14, 2017 12:26 PM

Artists Row: Studio 3807 and The Artisan: Job Creation

Is Regional Center located within a Targeted Employment Area (TEA)?
Yes
Is this a Public / Private partnership?
Yes
Job creation methodology
RIMS II
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)
316.3
How many jobs are expected to be created in total? (Indirect & Induced)
268.8
How many jobs are expected to be created in per investor? (Direct)
6.2
How many jobs are expected to be created in per investor? (Indirect & Induced)
5.27
How are jobs allocated to the pool of investors?
in order of Fund subscription date on a 1st come, 1st allocated basis. All numbers above based on maximum $25.5 million Loan with 51 EB-5 investors in the Fund. Lower number of Fund subscriptions and EB-5 investors will increase jobs created per investor ratio.
Can you describe the job creation model? For instance, is it based on capital injection, or on a direct job creation and indirect job multiplier, or other?
Report, dated May 2016, by Dr. Paul Sommers, Ph.D., based on total development costs and projected operating revenues for the Project, as described in the business plan for the Artists Row Project, using appropriate RIMs II multipliers and adjustments.
Can you please describe what role a Public sector entity or government body has, if any, in overseeing has in overseeing the commercial operation, the accounting or tracking of the job creation, funding, issuing bonds, or any other investment or audit role that they might perform?
After soliciting and reviewing competitive proposals from private developers, Prince Georges County, Maryland, acting through it Revenue Authority and its Redevelopment Authority (collectively, PG County"), chose the development plan submitted by Landex Development LLC for the redevelopment of the two Artists Row project sites, 3807 and 4100 Rhode Island Avenue, and thereafter made substantial cash equity contributions to Brentwood Development, LLC, the Owner of Phase 1 of the Artists Row Project, as part of its ongoing plan to invigorate the Brentwood Arts District in which the Project is located. PG County is thus an equity partner, together with Landex controlled affiliates, in the Artists Row Project.

Artists Row: Studio 3807 and The Artisan: 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
If performed by a third party firm, can you please provide details of the scope of the audit and what the report released entails?
Annual reports on Form K-1 will be distributed by the independent Fund Administrator, Woodfield, to all Fund investors, which will be prepared by an independent accountant. Periodic reports and/or notices relating to the progress of the development of the project and any material events affecting the Project or the Fund, will be distributed to all Class A investors, as and when necessary or appropriate.
Do you have a third party firm that performs employee payroll & HR record keeping services for the project?
No
Do you have a third party firm that performs I-9 verification?
No
If No, do you perform I-9 verification of the employees?
Yes
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 No, could you please describe what notice you would require as well as any procedures that would need to be followed for performing the audit?
The Loan documents require the Project developer to provide such information to the Fund as it deems reasonably necessary to meet the evidentiary requirements of the EB-5 program on behalf of its EB-5 investors.
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?
Yes
If Yes, could you describe what notice you or they would require as well as any procedures that would need to be followed for performing the audit?
The Loan documents require the Project developer to provide such information to the Fund as it deems reasonably necessary to meet the evidentiary requirements of the EB-5 program on behalf of its EB-5 investors.

Files & Documents

  • Download: Artists_Row_TEA_Census_Tract_Map.pdf

    Artists Row TEA Census Tract Map

    Showing census tracts referred to in the Artists Row TEA designation letter from the State of Maryland.

    Created: March 02, 2017 01:08 PM
  • Download: TEAVerificationGCMA_5-11-16.pdf

    Artists Row TEA Designation Letter

    Letter from the state of Maryland officially designating the Artists Row Project sites as within a Targeted Employment Area.

    Created: March 02, 2017 01:08 PM

Artists Row: Studio 3807 and The Artisan : Escrow

Escrow: No

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