PEARL OFFICE BUILDING
| EQUITY | $30MM |
| LOAN | $33MM |
| EB-5 | $5MM |
| TOTAL BUDGET | $68MM |
| UNIT INVESTMENT | $500,000 |
| ADMINISTRATIVE FEE | $50,000 |
| JOBS CREATED | 104 / INVESTOR |
| EB-5 INVESTOR RETURN | 15% |
Exit strategy
Sale / refinance in 5-7 years
Project summary
The project is located at NW 9TH and Northrup in Portland’s Pearl District adjacent to the award-winning Pearl District Residence Inn by Marriott – a Williams/Dame development that opened in April 2014. The Pearl District is the heart for Portland, home to over 5,000 new residential units and filled with parks, outstanding restaurants, local boutiques, and art galleries. The project site is conveniently located next to Portland’s historic Union Station, and enjoys outstanding transportation access to nearby freeways, bridges, Amtrak, light rail and streetcar.
| NEW CLASS “A” OFFICE SPACE | 166.000 SF |
| RETAIL | 9.545 SF |
| ON-SITE PARKING SPACES | 58 |
| ADDITIONAL PARKING SPACES | 99 |
| BUILDING HEIGHT | 8 STORIES |
| LAND PURCHASE PRICE | $7.400.000 |
EB-5 INVESTMENT SUMMARY
5 Stars Global has created a secure path for EB-5 investors to receive their initial investment back within 5-7 years.
The office project will be fully leased, and therefore achieve most of its full value, just as the project is completed.
Investors will receive 115% of their capital investment back through a combination of:
- Net operating income:
Investors will earn at least 70% of the net income distributed to the EB-5 Limited Partnership until they have received their capital investment back along with a 15% return. - Sale / refinance:
The General Partner will seek to sell or refinance the office project 5-7 years from the time of initial investment. Sale/ refinance proceeds (after debt repayment and expenses) will be prioritized to flow to EB-5 investors until they have received their capital investment back, along with a 15% return.
Job creation
The key to success for EB-5 projects is to deliver jobs that secure green cards for investors. The Pearl Office project will deliver 1044 new jobs to the Portland area. This represents 104 JOBS PER INVESTOR – significantly more than the 10 jobs per investor required by the USCIS. The job estimates were established by ECO Northwest, a widely respected economics firm who have worked with 5 Stars Europe on their previously approved projects.
REQUIREMENT
10 jobs / investor
Pearl Office Delivers
104 jobs / investor
FINANCIAL PROJECTIONS
| 2016 | 2017 | 2018 | 2019 | |
| Vacancy rate | 7.5% | 7.5% | 7.5% | 7.5% |
| Total revenue | $6,617,940 | $6,816,478 | $7,020,972 | $7,231,601 |
| Netoperating income | $4,086,302 | $5,150,688 | $5,305,208 | $5,464,364 |
| Debt service | $2,257,568 | $2,257,568 | $2,257,568 | $2,257,568 |
| Cash available for distribution | $1,828,734 | $2,893,120 | $3,047,640 | $3,206,796 |
| Return on costs | 4.29% | 7.56% | 7.79% | 8.02% |
WELCOME TO PORTLAND
The 2nd lowest office vacancyrate in the U.S.
The most livable city in the U.S. Portland, Oregon is a world-class city surrounded by a stunning landscape of rivers, snow-capped mountains and verdant forests. The city, renowned for its livability and affordability, has built a thriving high tech industry which is openly welcoming to new businesses and residents alike. A perfect place to realize your American Dream. Portland attracts more new graduates than other major cities.
New graduates moving to Portland increased 37.3% between 2000 and 2012 – higher than Seattle, New York, Boston and San Jose.
- San Francisco – 11.4%
- New York – 25.3%
- Seattle – 26.5%
- Portland – 37.3%
- The #1 choise for expanding tech companies
- Lowest cost of doing business
- Lowest cost of living
The Pearl
The Pearl district the best office location. Portland’s highest rent. Pearl office spaces command a 14% rent premium.
The location of the Pearl Office is a huge asset for companies looking to recruit new employees. The dynamic urban location is the first choice for employees, and one of the many reasons why the Pearl District commands a 14% rent premium in the Portland office market.
The 2nd lowest office vacancy rate in the U.S. Portland office market vacancy rates have been steadily decreasing since 2010.
The best office location Live. Work. Play.
The Pearl District is Portland’s most dynamic neighborhood. Filled with the city’s best known restaurants, world class art galleries, and vibrant shops and boutiques, the Pearl has earned a worldwide reputation for urban renaissance.Companies ranging from finance and real estate to advertising to software are proud to call the Pearl home. Nestled among family-friendly parks, the Pearl District seamlessly integrates a thriving business community into its rich cultural fabric, making it the ideal place to Live. Work. Play.
PERFECTLY CONNECTED
Access to the Pearl Office is unmatched. The Portland Streetcar and Light Rail enable employees to easily commute to work with public transportation. The Pearl Office also supports Portland’s bike culture, providing commuters with locked storage for bikes and shower amenities onsite.
THE VISIONARIES BEHIND THE PEARL DISTRICT
Williams & Dame Development (WDA) not only developed 13 of the Pearl District’s premier properties, but they also were the Master Developer for the entire district. WDA collaborated closely with the City of Portland on every aspect of the district, including: transportation routes for the streetcar, the parks and common spaces, and housing and commercial tenant mix. The results are exceptional. The Pearl District has become an icon for urban development and is featured in case studies around the world.
5 Stars Europe is focused on the acquisition and development of nationally branded hotels, office buildings, and multi-family housing located in Targeted Employment Areas. In partnership with best-in-class immigration attorneys, immigration networks, and regional centers, 5 Stars Europe oversees and protects immigrant investor portfolios with a hands-on management approach. 5 Stars Europe maintains its corporate offices within the Pearl District of Portland, Oregon.
WILLIAMS & DAME
Williams, Dame & Associates (WDA) has been developing real estate on behalf of investors for over 40 years. WDA has delivered over $2 Billion of real estate projects and has been one of the most prolific and successful real estate companies in the Pacific Northwest. From the reinvention of Portland’s Pearl District to the rebirth of downtown Los Angeles, WDA has become a trusted leader in the creation of vibrant urban communities. This is the partnership’s 5th EB-5 project.
PARTNERS
Hacker Architecture has been designing some of the most loved architectural work of the Pacific Northwest for over 30 years. Founding Principal Thomas Hacker created a design practice based on clearly articulated principles; with a goal of creating spaces uniquely suited to the people they serve. Hacker was the recipient of the 2013 AIA Northwest & Pacific Region Firm of the Year award, and has been recognized for maintaining the highest standards of design, service to the community and the planet, and having a sustainable approach to the long term success of the firm.
GBD, a multi-disciplinary architecture and design firm, offers clients expertise in integrated architecture, urban design and planning, and interior design.The firm was founded in 1969 in Portland, Oregon. GBD has a tremendous amount of experience with the Portland Building Department and local codes.
Howard S. Wright With over 125 years of experience in the construction industry, Howard S. Wright Construction is one of the oldest continually-operating building contractors in the western United States. HSW has completed over 100 hotel projects, including a large portfolio of upscale hotel properties and possess specialized knowledge regarding the ground up construction and renovation of hotels.
KEY TAKEAWAYS
100% track record of i-526 approvals
5 Stars Europe and WDA have a 100% success rate for USCIS approval of I-526S on 500+ investors and a 100% success rate for USCIS project approval all four of our EB-5 projects.
This project creates 1,044 jobs, delivering 104 jobs per investor – 10х the USCIS requirement. The job analyses and report were prepared by ECO Northwest and employ the same successful methodology as our previously approved projects.
Guaranteed-maximum-price construction contract
The project will employ a guaranteed-Maximum-Price construction contract with Howard S. Wright (HSW). This will ensure that construction prices will not rise during construction. HSW has been in business for over 128 years and was also the contractor for 5 Stars Europe Pearl District Marriott Residence Inn and River Place Hyatt House hotels.
This page summarizes certain of the information contained in the offering circular of EB5 Pearl Office Building investment limited partnership (the “partnership”), together with its exhibits, as it may be amended from time to time (the “offering circular”). This is not an offering to sell securities or solicitation of an offer to purchase securities, which is made solely by means of the offering circular.
Investors may not rely on any information regarding the offering that is not contained in the offering circular. Investors are strongly urged to review the entire offering circular, including in particular the descriptions of risks that apply to an investment in the partnership, before making an investment. Investors should consult with their own independent advisers regarding the risks of an investment in the partnership. The information contained herein is confidential and may not be reproduced or distributed to any other party without the express written consent of the partnership. The offering is made solely to Non-U.S. persons who are qualified investors as described in the offering circular. No offering is made, and no investors will be accepted, from any jurisdiction in which it is unlawful to make the offering.
