GROUP 1 – Spring Garden
INTRODUCTION
ARCFE Group 1 is formed to fund the development of a residential condo building, located at 70-32 Queens Blvd, Queens, New York City. It’s a 12-story mixed-use building that includes residential and retail spaces. The project started construction in March 2013 and has completed in 2021. Currently waiting for the CO approval. I-526 and I-829 has been Approved.
PROJECT PICTURES
PROJECT DEVELOPER
70-32 Queens Boulevard LLC is the developer of the project. The developer company is led by an experienced developer Steve Cheung. The project will be developed in cooperation with the following professionals:
Architect Designer – Michael Kang, Michael Kang Architect PLLC
Michael Kang is the founder of Michael Kang Architect PLLC, an international practice offering comprehensive architecture and interior design services, with offices in Flushing, New York. Mr. Kang has worked on projects including office buildings, hotels, residential towers, and mix‐use developments. His strong engineer background allows him to design functional, economical and attractive spaces and environments. Mr. Kang specializes in high‐rise building design, and has won architectural competitions and awards. He is a licensed architect in New York State.
General Contractor – Hua Yang Inc
Hua Yang Inc is a full-service construction firm based in Queens, New York. Its business scope includes indoor and outdoor design and construction; residential villa construction, expansion, and restructuring; decoration and renovation for large restaurants, shops and offices; and building consultation. Hua Yang Inc aims to exceed clients’ expectation and requirements for environment, function and visual experience. Hua Yang Inc has established its superior reputation in the areas of Queens, Brooklyn, Nassau County, etc.
PROJECT STRUCTURE
Queens County is the second most populous borough of New York City. Queens Blvd is the busiest major road in Queens County. Currently, newly built condo units with 2 bedrooms and 2 bathrooms along the Queens Blvd (about 1,000 square feet) are sold at an average of price of $600,000/unit.
PROJECT CAPITAL STRUCTURE
Total project investment | $22,270,000 |
|---|---|
Developer investment | $14,670,000 (66%) |
Land loan | $1,600,000 (7%) |
EB-5 Loan | $6,000,000 (27%) |
JOB CREATION
12 | 120 | |
Total investor | Required jobs to be created | Expected jobs created |
HIGHLIGHTS
1
EB-5 funds have first-order rights to the collateral provided by the borrower
EB5 funds will get real real estate as collateral. These properties are also located in Queens, New York City. The transportation is very convenient. Supermarkets, banks, doctors and clinics are all within 5 blocks. You can walk to the two subway lines L in 5 minutes. And M line, take the subway nine stops to reach Manhattan, the commercial center of New York City. In addition, the collateral is a property newly built by the developer in the summer of 2011, and it is currently leased.
2
EB-5 collateral has the following advantages over other similar projects
In addition to the project assets, the collateral for the project also includes the personal assets of the developer, including existing apartment buildings. The collateral of some projects is indivisible and difficult to dispose of assets, such as plant and equipment. In some large-scale projects, the borrower uses public land or plant equipment as collateral, and when the loan cannot be repaid, these assets can only be disposed of by the invested limited partnership through legal procedures. Since these assets are difficult to find a buyer and cannot be divided, it is difficult to dispose of them even after being recovered.
The collateral for some projects is real estate or hotels that have not yet been built. There are certain uncertain factors in using a non-existent project to mortgage, and if the project cannot be carried out as scheduled or completed smoothly, the mortgage itself will also become of no actual value.
In addition, some projects also use actual real estate as collateral, but due to geographic location, there is no strong demand in the market, which is not conducive to disposal.
3
The geographical position of the project is superior and the business prospect is good
The Queens District of New York City is the second most densely populated administrative district in New York City. Queen’s Road is the most prosperous main road in Queens. At present, the average price of a new two-bedroom, two-bathroom apartment (about 1,000 square feet) on both sides of Queen’s Road is about US$500,000.
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