Funding represents Lightstone's sixth successful hotel EB-5 raise with seventh and eighth raises already underway
NEW YORK, July 18, 2019 /PRNewswire/ -- National real estate investor and developer Lightstone announced today the completion of its sixth round of successful EB-5 investment funding. In one of its largest rounds to date, Lightstone raised $70 million for the development of the company's 286-key Marriott Moxy hotel in Manhattan's East Village neighborhood. Fundraising for two other Lightstone Moxy hotels is already underway for Miami's 202-key Moxy South Beach and the 744-key Moxy Downtown Los Angeles, which represents Lightstone's single largest EB-5 funding project.
Executed by Lightstone's global team, the Moxy East Village fundraise marks the third completed EB-5 raise within Lightstone's portfolio of Moxy hotels, following $70 million raised for the 612-key Moxy Times Square and $63 million raised for the 349-key Moxy Chelsea.
"We're pleased that global investors are recognizing the value of our Moxy East Village development and our strong, sound EB-5 investment platform," said Lightstone President Mitchell Hochberg. "Lightstone's global team was instrumental in raising our sixth successful round of funding, and we look forward to our ongoing partnership as we undertake our next two raises."
Located just blocks from Union Square and New York University and directly across from Webster Hall, Moxy East Village is set to open this fall. Conceived by Rockwell Group as a vertical timeline, each floor of the hotel draws inspiration from a different era in East Village history, from the earliest settlers to the punk era to today. Moxy East Village offers 286 design-driven bedrooms, co-working spaces, tech-savvy amenities, and cultural programming that reflects the richly diverse fabric of the neighborhood. The hotel features four new eating and drinking concepts by TAO Group, including a lobby bar and café, rooftop bar, subterranean lounge, and French-Mediterranean restaurant from chef Jason Hall.
Moxy East Village adds to Lightstone's growing hotel development portfolio, which includes Moxy Times Square, which opened in fall of 2017, and Moxy Chelsea, which opened earlier this year. In addition to Moxy East Village, Lightstone is currently developing Moxy hotels in New York City's Lower East Side and Williamsburg neighborhoods, South Beach, Miami, and Downtown Los Angeles.
The EB-5 Immigrant Visa Program offers high net worth foreign nationals the opportunity to invest in a US commercial enterprise and receive permanent residency through job creation.
The EB-5 visa process involves a minimum investment of $1,000,000 (or $500,000 if the investment is made within a Targeted Employment Area (TEA) - a rural area or one with high unemployment). This qualified investment must be made into a new commercial enterprise that creates at least 10 full-time jobs. If a qualifying investment is made, the EB-5 investor, spouse and unmarried minor children may apply for a conditional green card, may later apply for a permanent green card and eventually, U.S. citizenship.
Lightstone, founded by David Lichtenstein, is one of the largest and most diversified privately held real estate companies in the United States. Lightstone is active in 28 states across the country, developing, managing and investing in all sectors of the real estate market, including residential, hospitality, commercial, and retail. With over 178 existing properties, Lightstone's over $6 billion portfolio currently includes over 4.5 million square feet of office, retail and industrial commercial properties, over 15,000 residential units, and 4,300 hotel keys. Lightstone also owns over 12,000 land lots across the country.
Headquartered in New York City, Lightstone continues to grow its development portfolio with over $3.5 billion currently under development in the residential and hospitality sectors spread across New York City, Los Angeles, and Miami.
Teddy Simmons Wilson