MG3 scores EB-5 funding for charter school west of Delray
Funds came from 60 investors and almost entirely cover project’s $34.5M cost
October 17, 2016 04:35PMBy Sean Stewart-Muniz
Rendering of the charter school and MG3 Development Group Principal Hernan Leonoff
Financing the development of charter schools with EB-5 funds may just be the next big thing in real estate.
MG3 Development Group recently scored a $30 million loan from an affiliate of GreenAccess, an EB-5 investment facilitator, to help fund the construction of a charter school west of Delray Beach.
County records show the loan covers roughly 24 acres of agricultural land along Lyons Road, north of Happy Hollow Road in unincorporated Palm Beach County.
This is the first and perhaps last round of financing for the school from MGS3. According to GreenAccess’s website, the funds — sourced from 60 foreign investors — cover nearly the entirety of the project’s expected $34.5 million cost. A request for comment from MG3 was not immediately returned.
The lender has put together EB-5 financing packages for 10 charter schools in the past. Other sections of the GreenAccess’s lending portfolio are password protected on its website.
MG3’s planned 153,000-square-foot charter school campus is expected to have room for 2,245 K-12 students and has an opening date slated for August 2017. County commissioners approved the project early last year.
Under the EB-5 program, foreign nationals can invest $500,000 in a job-producing project stateside in exchange for an immigration visa. Though controversial, Congress recently extended the program without reforms until December.
Source: The Real Deal