Newbury Complex - Pittsburgh Regional Investment Center

U.S. EB-5 Immigration
Pennsylvania
Newbury Complex
Multi-Phase Retail Building Project
Pittsburgh Regional Investment Center | www.pittsburghric.com
It is my pleasure
... to introduce to you the Newbury Complex, the region's newest multi-phase EB-5 project and one chosen carefully to meet
the needs of today’s EB-5 investors.
As the only approved Regional Center working exclusively in
Pittsburgh and its surrounding area, we offer only the most reliable and low-risk projects for our investors. The Newbury Complex is a mixture of residential and business components that
will create a new community. The Complex will benefit the local
economy and provide employment opportunities above and beyond those required by the EB-5 Investor Program. Moreover,
the multi-phase structure of the project provides more flexibility
to our investors applying for their green cards.
The Pittsburgh Regional Investment Center will facilitate the EB-5 process for you, ensuring
access to all the information and support needed to make this investment.
On behalf of the Pittsburgh Regional Investment Center, I am excited to provide to you this
comprehensive brochure to assist in your understanding of the Newbury Complex project and
my hometown – Pittsburgh. Our knowledgeable staff is available to discuss this project with
you in detail and answer any questions you may have. You will also find the latest information
at www.pittsburghric.com.
The Pittsburgh Regional Investment Center will be with you every step of the way, from making
your initial investment decisions to fulfilling your unique American dream, we are here to help.
Sincerely,
Michael Matesic
Pittsburgh Regional Investment Center
CEO, Idea Foundry
Table of Contents
1. Pittsburgh Regional Investment Center ....1
Overview ..............................................................1
Benefits to Investor...............................................2
2. Newbury Complex .......................................3
Overview...............................................................3
EB-5 Investment....................................................4
Project Advantages................................................5
Phase Details........................................................6
Job Creation Report .............................................7
Developer: EQA Landmark Communities ............9
Co-Lender: Thistle Financial Group....................10
3. The Commonwealth of Pennsylvania ......11
4. The City of Pittsburgh ...............................13
5. Appendix .....................................................17
Appendix A: USCIS Approval Letters...................17
Appendix B: Support Letters.................................21
Appendix C: Government Grant Letters................24
Pittsburgh Regional
Investment Center (PRIC)
Overview
Located in Pittsburgh, Pennsylvania, the Pittsburgh Regional Investment Center (PRIC) is a
federally approved EB-5 Regional Center, the only one that covers Southwest Pennsylvania,
exclusively. As an EB-5 Regional Center, the PRIC coordinates foreign investment in Southwest
Pennsylvania in compliance with the U.S. Citizenship and Immigration Services (USCIS) EB-5
statutes, regulations, and established precedent. (See USCIS approval letter in the Appendix A)
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As a Program of Idea Foundry – our parent company, PRIC promotes Idea Foundry’s primary
objective of regional economic development, choosing only those large-scale projects that we
believe will encourage sustained economic growth in Southwestern Pennsylvania. As a regional
center dedicated to providing investors with outstanding information, service and support, we
provide both:
• EB-5 Investment Selection, and
• EB-5 Business Management
Idea Foundry, the parent company of PRIC
Founded in 2002, Idea Foundry is a not-for-profit organization funded by local foundations and
the Commonwealth of Pennsylvania. It has invested in over 90 technology businesses and created over 550 high-wage jobs since its inception, helping to drive the regional economy in southwestern PA.
Portfolio of Idea Foundry, Inc.
Including Life Sciences / Healthcare IT, Energy Efficiencies / Green Tech, Advanced Materials, Entertainment Technology, Education, and Information Technology
Benefits to Investors
• Less investment capital required. All current PRIC investment opportunities are located in a Targeted Employment Area (TEA).
Our investors qualify for a lesser investment of
$500,000.
• No management required. PRIC will manage all investment projects. Investors are
not required to manage their investment on
a daily basis so they may pursue other personal and professional ventures.
• Job creation requirement surplus. PRIC
qualifies for an accounting of both direct and
indirect employment creation.
• Freedom to travel abroad. Investors may
travel outside of the United States and return
without a visa.
• No quota backlogs. There are no quota
backlogs like those found in many other employment and sponsorship visa programs.
• More affordable tuition. Students may
attend public and private schools, colleges,
and universities at the same costs as U.S.
residents.
• No language or experience requirement.
Foreign investors are not required to speak
English, have related business experience, or
achieve minimum education requirements.
• Approval for whole family. Investors and
his/her full families (spouse and unmarried
children under 21 years) will be granted, upon
approval, U.S. Lawful Permanent Residency at
the same time.
• Safe way in, safe way out. As part of our
partnership with EB-5 investors, we will minimize the risk of EB-5 investments, and ensure compliance with the stated exit strategy
for each Investor’s funds.
More Information about PRIC:
w w w. p i t t s b u r g h r i c . c o m
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Newbury Complex
Overview
The Newbury Complex will rest on approximately 305.5 acres located in South Fayette Township, one of the fastest growing municipalities in western Pennsylvania. The site has excellent
visibility and easy access to the Interstate 79 highway. The EQA Landmark Communities led
partnership, Newbury Development Associates, LP (“NDA”), purchased the site in 2007 and the
construction of Newbury Complex is currently underway. When completed, this development will
be a high quality, integrated, walkable community where both families and individuals will live,
work and play.
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The Newbury Complex follows a mixed-use master plan that, at full build out, will include over
950,000 square feet of retail/commercial space, around 200 for-sale homes, and 250 multifamily rental apartments. As a main street destination located along Interstate 79, and a unique
neighborhood, the Newbury Complex will be a vibrant gathering space and community, bringing
together the wide variety of people and cultures in western Pennsylvania.
The total financial cost of the Newbury Complex is $416 million, including $62 million for horizontal land development and $354 million for vertical construction. The horizontal land development
began in September 2008 and has been completed using both government funds and private
fundings, including a $5 million Infrastructure and Facilities Improvement Program grant from the
Pennsylvania Department of Community and Economic Development, and a $11.0 million loan
from the Pennsylvania Infrastructure Investment Authority, with over $42 million in development
loans from Thistle Financial Group, LLC.
The vertical construction is comprised of eleven phases: Single-Family Residential I, Entrance
Parcel Development, Single-Family Residential II, Newbury Village, Power Center A Development, Main Street Development, Outparcels, Anchor 1, Anchor 2, Power Center B Development
and Anchor 3. Single-Family Residential I has been completed and, by June 2012, all 55 lots
were sold, 20 lots in Single Family Residential II have been sold as well.
EB-5 Investment
EB-5 Investments will total $50 million for the Newbury Complex. The investment will be structured as a loan, and will be used in 6 separate vertical construction phases. The Thistle Financial
Group, LLC as co-lender, will match the EB-5 investment in these phases. NDA, the developer,
will provide the remainder of the funds. The EB-5 term by phase is below:
Entrance Parcel
Power Center
A
Main Street
Anchor 1
Anchor 2
Power Center
B
Total
Total Project
Costs
$16,771,899
$31,468,261
$26,574,546
$11,260,706
$20,454,333
$19,217,279
$125,747,024
Total EB-5
Investment
$6,000,000
$12,500,000
$10,500,000
$4,500,000
$8,500,000
$8,000,000
$50,000,000
Number of EB-5
Investors
12
25
21
9
17
16
100
Fund per Investor
$500,000
$500,000
$500,000
$500,000
$500,000
$500,000
Administration
Fee per Investor
$45,000
$45,000
$45,000
$45,000
$45,000
$45,000
Estimated EB-5
Investment
Return
Over1%
Over1%
Over1%
Over1%
Over1%
Over1%
Each phase will be funded by a separate EB-5
funded loan. EB-5 funds will be invested on a
phase-by-phase basis, as soon as the loan amount
for the first phase has been met, that money will
be invested into the project. Additional funds will
then go towards the second phase. When that
loan amount is reached, those funds will immediately be invested into the project, and so on. Each
loan will have a maturity term of five years from
the date it is invested in the project.
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Project Advantages
The advantages of the Newbury Complex project are as follows:
• Project Progress. The Complex is well underway with the initial residential components completed. EB-5 funding is less than 15% of the total project cost.
• Job Surplus. For the 6 phases funded in part by EB-5 investment, 4,706 jobs will be generated, a 370% job surplus for EB-5 investors.
• Government Support. The Township of South Fayette, Allegheny County, and the Commonwealth of Pennsylvania have all expressed support for the project through tax abatements and
government grants. Support letters and government award letters are provided in the Appendix
B and C.
• Powerful Developer. EQA Landmark Communities is a national real estate development company with a proven track record of successfully developing complex projects.
• EB-5 Investment Flexibility. With smaller individual loans being invested into separate phases, prompt applications to USCIS will result in faster visa decisions.
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• Investment Protection. EB-5 investors in a shared position with a high quality lender, hold a
first lien over the collateral.
• Lease first, Loan second. Each loan commitment will be subject to receipt, review, and acceptance of the individual lease or group of leases exhibiting a minimum initial term of 10 years.
The investor can be assured
that the building will be leased
before his/her investments
are put into the project.
• High demand for retail
development in this area.
Overall, the average occupancy rate of retail centers
located in this trade area is
98%. Recent large-scale developments similar to Newbury are experiencing occupancy rates in excess of 92%.
EB-5 Project Buildings
Phase Details
• Entrance Parcel
The Entrance Parcel is located along 5 acres
of the northerly side of PA Route 50. The construction of the building will begin in the 4th
quarter of 2012, and will open for business
in the 3rd quarter of 2013. The gross lease
area will be 48,000 sq. Ft, with estimated
total annual rent revenue at $1,824,000*.
Proposed tenants include Starbucks, Dollar
Bank, Chipotle, and Cheddar’s.
• Power Center A
Power Center A will cover 11.21 acres. The
construction of the building will start in the
2nd quarter of 2013, opening for business
in the 1st quarter of 2014. The gross lease
area will be 132,500 sq. Ft, with estimated
total annual rent revenue of $2,782,500*.
Proposed tenants include Staples, TJ Maxx,
Marshall, and PetSmart.
• Main Street
The site of the Main Street will stretch over
5.97 acres. The construction of the building
will start at the 3rd quarter of 2013, opening for business at the 2nd quarter of 2014.
The gross lease area will be 97,176 sq. Ft,
with estimated total annual rent revenue of
$2,769,516*. Proposed tenants include AT&T
Wireless, Panera Bread, Vitamin Shoppe,
and Hallmark Cards.
• Anchor 1
The site of Anchor 1 will cover 5 acres, suitable for wholesale or a department store. The
construction of the building will start at the 4th
quarter of 2013, opening for business at the
3rd quarter of 2014. The gross lease area will
be 64,000 sq. Ft, with estimated total annual
rent revenue of $1,056,000*. Proposed tenant
is Kohl’s, a Fortune 500 company and, in terms
of revenue, the 20th largest retailer in the U.S.
in 2011.
• Anchor 2
Anchor 2 will cover 7.9 acres. The construction of building will start at the 2nd quarter of
2014, opening for business at the 1st quarter of
2015. The gross lease area will be 117,000 sq.
Ft, with estimated total annual rent revenue of
$3,042,000*. Proposed tenants include Target,
JCPenny and BJ’s Wholesale Club.
• Power Center B
Power Center B will cover 6.1 acres. The construction of building will start at 3rd quarter of
2014, opening for business at the 2nd quarter
of 2015. The gross lease area will be 60,000
sq. Ft, with estimated total annual rent revenue
of $1,740,000*.
*Retail tenants will pay all real estate taxes and
utility costs for their leased space. They will
also pay a common Area Maintenance fee to
off-set costs for maintenance of common amenities.
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Job Creation Report
By Wright Johnson, LLC
As stated in PRIC approval letter issued by USCIS
on July 11, 2011, Pittsburgh Regional Investment
Center is approved to use IMPLAN 3.0 econometric model to analyze the employment created from
invested projects to meet I-829 requirements to remove the conditions.
The following is a summary of economic analysis performed by Wright Johnson for Newbury
Complex. IMPLAN Pro v3.0 was utilized. The entire report is available upon request.
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This impact economic analysis report was prepared to evaluate the economic impacts of a specific project located within a contiguous four-county area within the State of Pennsylvania, which
will be developed under the sponsorship of the USCIS-approved Pittsburgh Regional Investment
Center, LLC (“PRIC”). The project involves the construction and operation of multiple developments consisting of retail, food and beverage, office space and accommodations located in
South Fayette, Pennsylvania. This project’s activities will be collectively referred to as the “Newbury Development Project”.
This report has been prepared for the Pittsburgh Regional Investment Center, LLC by Richard
March, PhD. Dr. March holds a PhD in econometrics and has worked for several governmental
agencies and prepared a multitude of studies for clients such as the State of Florida and the
Chesapeake Bay Commission. Dr. March has completed analysis of over 100 EB-5 related projects in dozens of U.S. states.
Entire Newbury Development Project Employment
Direct
Indirect
Induced
Total
Construction
820.71
217.4
491.9
709.3
Operations
5838.9
635.9
1699.4
8174.2
Total
5838.9
853.3
2191.3
8883.5
Phase Employment
Year 2
Construction
Year 3
Annual
Total
Entrance Parcel
Direct Jobs
Indirect Jobs
Induced Jobs
Total Entrance Parcel Employment
66.21
17.5
39.7
57.2
230.2
71.1
104.3
405.6
230.2
88.6
144.0
462.8
Power Center A
Direct Jobs
Indirect Jobs
Induced Jobs
Total Power Center A Employment
112.31
29.8
67.3
97.1
721.9
39.8
141.9
903.6
721.9
69.6
209.2
1000.7
Main Street
Direct Jobs
Indirect Jobs
Induced Jobs
Total Main Street Employment
105.31
27.9
63.1
91.0
443.4
97.9
190.2
731.5
443.4
125.8
253.3
822.5
Direct Jobs
Indirect Jobs
Induced Jobs
Total Anchor 1 Employment
34.71
9.2
20.8
30.0
278.9
16.2
64.3
359.4
278.9
25.4
85.1
389.4
Anchor 2
Direct Jobs
Indirect Jobs
Induced Jobs
Total Anchor 2 Employment
63.41
16.8
38.0
54.8
1189.7
69.0
274.3
1533.0
1189.7
85.8
312.3
1587.8
Power Center B
Direct Jobs
Indirect Jobs
Induced Jobs
Total Power Center B Employment
36.61
9.7
21.9
31.6
338.3
15.3
57.6
411.2
338.3
25.0
79.5
442.8
Anchor 1
1 No direct jobs can be counted for projects that last less than two years per USCIS policy.
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Developer: EQA Landmark Communities
EQA Landmark Communities (“EQA”)
is a development team based in
Pittsburgh, Pennsylvania, and work
nation-wide create some of the best
mixed-use communities in America.
EQA is comprised of researchers,
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architects, engineers, and environmental experts, partnering with private developers, municipalities, and
land-owners to help a town, a community, or a neighborhood rediscover
its natural assets.
EQA Sfaff
From left to right: Kelly Smith, Brett Malky,
Eric Newhouse, Rachel Hinish, Bill Palmer
EQA’s expertise in creating and implementing a realistic multi-phased development plan,
along with its strong relationships with the country’s best architects, engineers, financial
institutions, and building manufacturers allows it to build communities of the highest quality.
It primarily focuses on projects that can fundamentally change an entire area, uncovering
unmet wants and needs and exploring geographic areas that have been overlooked. Currently, EQA Landmark Communities’ development partnerships are developing sites totaling
over 2,000 acres, 6,500 residential units, and 7 million sq. Ft of commercial space.
EQA Landmark Communities Projects
151 First Side
Edgewater
Summerset at Frick Park
Co-lender: Thistle Financial Group, LLC
Thistle was founded by a group of experienced commercial lenders, including Robert L. Rogers, Christopher T. Mowery and Amy
M. Shifko, who saw an opportunity to more efficiently address market demand for financing through syndication rather than through
a single bank. As a syndicating agent, Thistle focusses primarily
on commercial real estate lending, creating a network of community banks to engage in the origination and servicing these loans; Thistle develops, underwrites, analyses, and subscribes commercial loans for its member banks, servicing the loan
and solving any problems that may arise during the life of the loan.
Thistle Sfaff
From left to right: Robert L. Rogers,
Amy M Shifko, and Christopher T.
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The name of Thistle comes from Thistle flower which demonstrates the great beauty that
can result from what some may view as humble soil. Thistle has successfully concluded
syndicated loans with 22 community banks located in Pennsylvania, West Virginia, Ohio and
Maryland. Notable past projects include:
Heinz Loft Apartments
2 Galleria Mall
Regional Learning
Alliance – North Hills
Mermaid, LLC.
The Commonwealth
of Pennsylvania
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Geography
Situated in the eastern United States, Pennsylvania is also known as the Keystone State. It
connects the transportation arteries of the North, South, East Coast and Midwest in United
States. Pennsylvania is bordered by New York and Lake Erie to the north. In the south, Pennsylvania shares borders with West Virginia, Maryland, Delaware, and New Jersey. To the
east, New York and New Jersey line up on the Pennsylvania border. And on the west, Pennsylvania meets Ohio and an arm of West Virginia.
Pennsylvania covers 46,058 square miles, making it the 33rd largest of the 50 states. It is the
6th largest US State when ranked by population, with an estimated total of 11,785,000. Harrisburg is the state capital.
History
Before the Commonwealth was settled by Europeans, the area was home to Native Americans. In 1681, King Charles II granted William Penn the land, which he called Sylvania.
“Penn” was added later in honor of William’s father. On December 12, 1787, Pennsylvania
became the second state among the original 13 states to ratify the Federal Constitution.
Climate
The climate of Pennsylvania is diverse due to its multitude of geographic features. In the
southeast, the low-lying southwest Ohio Valley and the Monongahela valley have the warmest temperatures and the longest growing seasons. Weather in the region bordering Lake
Erie is moderate. The rest of the state, at high elevations, has cold winters and cool summers.
Economy
Pennsylvania’s 2010 total gross state product (GSP) of $570 billion ranks the state 6th in the
nation. If Pennsylvania were an independent country, its economy would rank as the 18th
largest in the world.
Pennsylvania is home to fifty Fortune 500 companies, six based in Philadelphia, and eight
residing in Pittsburgh. Erie is also home to GE Transportation Systems, which is the largest
producer of train locomotives in the United States. As of July 2011, the state’s unemployment
rate is 7.4%.
Agriculture and Industries
In the 19th and early 20th century, Pennsylvania’s oil, coal, steel and other heavy industries
developed rapidly, absorbing many immigrants and leading to vibrant population growth. The
main industrial sectors of Pennsylvania are metallurgy, textiles, chemicals, machinery manufacturing, metal processing, shipbuilding, electronics, etc. Pennsylvania is rich in coal, whose
production second only to West Virginia in the United States.
Agricultural land accounts for 30% of the state’s area while dairy revenues accounted for 50%
of agricultural income. The major crops are corn, hay, mushrooms, apples, potatoes, winter
wheat, oats, vegetables, tobacco, grapes and peaches.
Education
Pennsylvania has one hundred and forty-five universities, ranking third in the United States.
Four of the country’s top 50 universities are located here.
Major public universities include: Pennsylvania State University, Temple University and Pittsburgh University. Major private universities include: University of Pennsylvania, Carnegie
Mellon University and Lehigh University.
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The City of Pittsburgh
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Located in southwestern Pennsylvania, Pittsburgh is the second largest city in the state and
the 22nd largest urban area in the United States. The population of the city in 2010 was
305,704, while that of the seven-county metropolitan area stood at 2,356,285. Pittsburgh is
known as “the City of Bridges”, featuring 446 bridges across Allegheny and Monongahela
rivers.
Historically viewed as an industrial giant in the production of steel, iron, aluminum and glass,
Pittsburgh has gone through a major renaissance to become a business center, with its economy diversifying into largely based on healthcare, education, technology, and financial services. Pittsburgh is home of eight Fortune 500 companies, including U.S. Steel, PPG Industries and H.J. Heinz. The region is the nation’s center for nuclear engineering and an overall
attractive energy resource from coal to gas.
In 2010, Pittsburgh was ranked as “America’s Most Livable City” by Forbes. And it is now
considered one of the most attractive larger cities in which to live and conduct business.
Recently, there has been a resurgence of some of Pittsburgh’s major industrial corporations
(such as U.S. Steel, Westinghouse and Consol) as well as growth of many small and midsized companies. Because of this diversified economy, analysts are predicting an incremental
population increase in Pittsburgh over the next 20 years, gaining 126,000 residents by 2030.
Excellent Business
Environment
1. A Highly Skilled Workforce ——
Nation’s 2nd most educated area
- 35 institutions of higher education produce
32,600 graduates each year.
- Carnegie Mellon University and University
of Pittsburgh consistently rank among the nation’s best.
2. Commercial Access ——Within a day’s
drive/500 miles or a 90-minute flight of nearly
half of all U.S. and Canadian citizens
18 railway system, more than 1,000 motor
carrier service providers, 200 river terminals,
the second-busiest inland port in the nation.
3. Security ——Second-lowest crime rate
among the top 50 U.S. metro areas
Low risk of natural disaster; Redundant
business and utility infrastructure that
reduces service disruption.
4. A Climate of Innovation
120 corporate and federal R&D centers, plus
dozens at our various renowned academic
institutions.
5. Short Commutes
One of the shortest average daily commutes
(25 minutes) among major metros (U.S.
Bureau of Census)
Ideal Living Environment
1. World-class Health Care System
University of Pittsburgh Medical Center
(UPMC), is leading it position in the US with
the most technologically advanced facilities.
2. Beautiful Urban Environment
Green, clean and beautiful – among the “Top
10 Cleanest Cities in the World” (Forbes)
and also get LEED-certified. The city ranked
the second-best view in the U.S. from atop
Mt. Washington.
3. Culture
Pittsburgh is well-known for its varied and colorful culture. There are more than 500 arts,
cultural and heritage organizations, worldclass museums and architecture. The most
renowned among them are Carnegie Museum of Art, Gothic architectural styled Cathedral of Learning, Falling Water and etc. The
number of theaters in Downtown Pittsburgh’s
Cultural District rivals most cities outside of
New York.
4. Sports
Pittsburgh is being called the “City of Champions” since it has three very famous professional sport teams. Pittsburgh Steelers is the
first team in U.S. history that won National
Football League (NFL) “Super Bowl” championship for six times. For hockey, the Pittsburgh Penguins 3 times ruled the roost in
North America. For baseball, Pittsburgh Pirates MLB five times clinched the crown.
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Appendix A:
USCIS Approval Letter
15
16
17
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Appendix B-1: Support Letter from Allegheny County
19
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Appendix B-2: Support Letter from South Fayette Township
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Appendix C-1: Allegheny County GEDF approval letter
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Appendix C-2: Allegheny County RLF & EPA Award Letter
23
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PITTSBURGH Regional Investment Center
Address：4551 Forbes Ave, Suite 200
Pittsburgh, PA 15213, US
Tel：001-412-682-3067
Fax：001-412-682-3068
Email：[email protected]
Web：www.pittsburghric.com

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