It’s no secret that New York City developers have over the past few years been tapping the EB-5 spigot. Giant builders like Macklowe Properties,Extell Development, the Witkoff Group and the Related Companies have all helped themselves to the relatively cheap capital they can access through the program.
But now, the relative affordability of EB-5 cash compared with traditional financing — the main draw of the program — is being compromised by strong developer demand, increased competition for Chinese investors and a rise in the fees charged by intermediaries, sources told The Real Deal.