EB-5: The Intersection of Real Estate and Immigration

1 The Practical real Estate Lawyer | Spencer Compton and Diane Schottenstein As an alternative way to finance real es-tate projects, EB-5 is gaining ground. But be careful the program s rules can be hard to follow THERE ARE MANY ways for foreigners to get green cards to work in the United States and there are numerous paths to citizenship. The rules are intricate, the options vary depending on the ap-plicant s national origin, and the cases tend to be fact sensitive. Unbeknownst to many, the EB-5 Visa has become an Intersection of real Estate and Immigration . More and more foreigners, primar-ily Chinese nationals but also investors from Rus-sia, France, and Egypt, are attaining citizenship through the EB-5 programs, which have become the financing sources for an increasing number of real Estate projects.

2 The EB-5 program was established in 1990 by the Immigration and Nationality Act, found at 8 1153 (b)(5), as a mechanism to encour-age foreign investment in the United States and to create new jobs for workers. EB-5 stands for employment-based 5th category, one of many categories on which to base a green card or citizenship application. Initially, the foreign ap-plicant had to create an entirely new commercial Spencer Compton is a Vice President and Special Counsel at First American Title Insurance Company. He is also Senior Counsel to First American s Eagle 9 Cooperative Apartment Insurance Division, and Senior Vice President at First American Exchange Company. Mr. Compton is the Budget Officer of the New York State Bar Association real Property Law Section. He has lectured and published articles about commercial real Estate law and practice as well as title insurance, UCC insurance and 1031 exchanges.

3 Prior to joining First American Title, he was a practicing real Estate attorney, with an emphasis on commercial leasing and financing transactions, for eleven years in New York Schottenstein has been practicing law in New York City for over twenty years. Diane has a practical approach to law. She understands personal and business issues and has counseled clients on a broad range of matters. She has a particular expertise in real Estate matters. Diane has experience in leasing, financing, and the acquiring and selling of real Estate . Her clients have included major national and international banks and corporations, pension funds, REITS, developers, owners, tenants and a broad range of individuals. Her real Estate transactions range from the purchase of a cooperative apartment to the leasing of a 160,000 square foot New York headquarters for a major international bank to a $750,000,000 loan financing.

4 Before embarking on solo practice Diane was associated with the nationally known law firms Cahill Gordon & Reindel LLP and Seward & Kissel LLP, as well as and the New York City real Estate law firm Goldberg Weprin Finkel Goldstein, LLP. She received her from Cornell University and her and in Taxation from New York University School of Law. She is admitted to the bar in New York, New Jersey, and Florida. Currently she is member of the City Bar Association s real Property Law Committee and the Small Law Firm Committee. She also teaches a CLE program on negotiating a commercial lease for the National Law : The Intersection of real Estate and Immigratio