[Project Background]
This project, covering 7 city blocks, 22 acres, and totaling 7.8 million square feet, has a total investment of $1.448 billion and is located in the central area of Brooklyn, New York City, USA.
The project mainly includes the construction of three parts:
1. The Brooklyn Arena (home of the Nets), also known as the "Barclays Center," broke ground in 2009 with extensive excavation. The Governor of New York, the Mayor of New York City, the Brooklyn Borough President, and stakeholders of the Nets, including the famous musician Jay-Z (husband of singer Beyoncé), participated in the groundbreaking ceremony. It is expected to be completed in the second quarter of 2012, at which point the New Jersey Nets will officially be renamed the Brooklyn Nets after relocating to this arena. The arena can accommodate approximately 18,000 spectators, including 17,103 general seats and 1,179 various luxury box seats, with 4 entrances, 5 premium lounges, and 1 restaurant, among other facilities.
2. Infrastructure construction, including the demolition of buildings on the project site, facility relocation, leveling of parking lot surfaces, and the relocation of Carlton Street Bridge and related work.
3. The construction of a brand new modern railway: a new modern rail line and train service facilities for the Long Island Rail Road.
The construction site is equipped with 24-hour surveillance recording facilities, which can record and view the actual progress of the project online.
[Project Overview]
1. The total investment for the project is $1.448 billion, of which:
A. The New York State government allocates $100 million
B. The New York City government allocates $131 million
C. The New York State government provides $511 million in municipal tax-exempt bonds
D. The developer, Forest City Enterprises, invests $457 million, of which $270 million has been spent, and the remaining funds are held in a construction escrow account for project needs.
E. Funds from EB-5 investors amount to $249 million (only 17% of the total investment, and it is the last tranche of funding for the project, with first priority repayment, making it very safe and reliable)
2. The number of EB-5 investors required: 498
3. The number of jobs to be created: 4,980
[Investment and Returns for EB-5 Investors]
Investment of $538,000 ($500,000 principal + $38,000 fund issuance fee)
U.S. green cards for the entire family
Full return of the $500,000 principal after 5 years
[Background Materials of Borrowers and Development Companies Designated by the New York State Government]
The borrower for this project is AYDC Regional Development Company, LLC, a subsidiary of Forest City Enterprises. Forest City Enterprises is the company selected by the New York State government to be responsible for the development and construction of this project, and it is also one of the shareholders of the Brooklyn Arena (home of the Nets) "Barclays Center."
Forest City Enterprises is one of the largest publicly traded real estate companies in the United States, with total assets of approximately $11.5 billion as of April 30, 2010. Founded in 1920 and publicly listed in 1960, it is a large enterprise with a 90-year history. Forest City Enterprises' business is mainly divided into three major parts: commercial real estate group, residential real estate group, and land development group.
Forest City Enterprises primarily owns, develops, manages, and acquires commercial and residential real estate projects in 27 states and the District of Columbia. Its core markets include New York City, the Philadelphia metropolitan area, Denver, Boston, the Washington D.C. area, the Baltimore metropolitan area, Chicago, and California, among others. It has established offices in Albuquerque, Boston, Chicago, Denver, London (UK), Los Angeles, New York, San Francisco, and Washington D.C., with its headquarters located in Cleveland, Ohio. As of January 31, 2010, the commercial real estate segment of Forest City Enterprises includes:
46 retail real estate projects, comprising nearly 16.9 million square feet of total leasable area;
49 office real estate projects, comprising nearly 14.1 million square feet of total leasable area;
5 hotels, totaling 1,823 rooms;
117 real estate projects, comprising over 33,000 residential units.
Below are some representative projects completed by Forest City Enterprises:
"MetroTech Center" is the third largest central business district in New York, a 16-acre campus with 14 office buildings, located in downtown Brooklyn, comprising 6.5 million square feet of premier office space.
"42nd Street Redevelopment Project" is a 444-room Hilton hotel in Times Square, located in the entertainment complex at the heart of Times Square in Manhattan, covering approximately 300,000 square feet. It is widely regarded as a template project for urban revival and development, and a culmination of 20 years of official cooperation between the State of New York and the City of New York, with its pinnacle symbol being the reform and rebirth of Times Square. This project is located at the "Crossroads of the World," benefiting greatly from the extraordinary tourist traffic attracted by Times Square.
"New York Times Building" is a 52-story landmark skyscraper, approximately 1.6 million square feet, of which about 70,000 square feet is owned by the New York Times and serves as the headquarters for its international company. Completed in 2007, this famous New York skyscraper was designed by the world-renowned architect and Pritzker Prize winner Renzo Piano.
"Atlantic Yards and Atlantic Center" is a development project of approximately 1,165,000 square feet, located across the street from the Atlantic Yards project, encompassing the Atlantic Center building (approximately 395,000 square feet), the Atlantic Yards building (approximately 370,000 square feet), and the Atlantic Yards office building (approximately 400,000 square feet). This unique, urbanized, mixed-use complex is one of the most prosperous and highest-grossing retail development projects in New York City.
"Bikman Tower" is a 76-story skyscraper designed by the renowned architect Frank Gehry, located in downtown Manhattan, south of City Hall Park and the Brooklyn Bridge. This mixed-use building includes 904 luxury rental apartments, a public school from preschool to 8th grade, and two public recreational plazas. Bikman Tower will become Manhattan's largest rental housing building, offering views of the East River, the Hudson River, the Brooklyn Bridge, and the entire New York City skyline.
[Background of the Nets] The New Jersey Nets were established in 1967. They won the ABA championship twice in a row from 1974 to 1976, becoming the "Eastern Power" in the United States. In 1976, the Nets officially joined the NBA, marking a new chapter in their basketball career. In the 2002-03 season, the Nets achieved glory again—once again topping the Eastern Conference and becoming the new champions of the NBA Eastern Conference.
Two significant events in 2008 and 2009 made the Nets a focal point of media attention in China, the United States, and Russia. First, in June 2008, the youngest MVP in CBA history, Yi Jianlian, joined the New Jersey Nets, forming a new "trident" with two other Nets players, Devin Harris and Vince Carter. Then, in 2009, Russian billionaire Mikhail Prokhorov invested heavily to acquire the Nets and participate in the construction of the Barclays Center. This undoubtedly marked the most historic moment in the Nets' NBA career, with the powerful "trio" combined with the generous support of the Russian billionaire, the development potential of the Nets is immeasurable. Furthermore, the Nets will officially be renamed the Brooklyn Nets when their home arena, the Barclays Center, is completed, moving their home base from New Jersey to New York.
[Note]:
1. All project information is subject to the official issuance documents;
2. EB-5 investment carries risks, and applicants should make independent judgments.
