Berkeley Student Housing

TEA HU
Berkeley, California
EB5 Explained

Project nears completion with EB-5 jobs already created

The Berkeley Student Housing project is on schedule for a timely completion in late summer 2024, coinciding with the academic calendar. EB-5 investor capital replaces the developer's bridge financing. Job creation stands at 238 jobs, exceeding the total EB-5 requirements and reducing immigration-related risk. Investors are presented with a repayment plan structured over a 3.5-year period, offering a fixed annual return of 2%. USCIS has approved three EB-5 investors thus far (with the most recent I-526 approval on May 10, 2024), confirming the project's adherence to the requirements of the EB-5 program.

Investment Highlights

Area Invested In

High unemployment

I-526E Processing

Standard

Total EB-5 Raise

$16,000,000

Total Project Cost

$38,820,996

Investment Amount

$800,000

Investment Term

3.5 Years — no extension options

Preferred Return*

2% per year

Jobs Created to Date

238 (all EB-5 jobs created)

Required Jobs

230

Developer Equity

40%

Full job creation for all investors

All 23 EB-5 investors have their qualifying jobs fully created.

Successful I-526 approvals

3 EB-5 investors have approvals thus far (most recent: May 10, 2024).

Fixed 3.5-year repayment plan

EB-5 capital repayment is targeted within 3.5 years, with no extension options.

Why Invest

Berkeley Student Housing is an attractive project in a prime location for investors interested in targeted employment area benefits, offering a lower investment amount and reserved visas. The project is nearing completion, with finishing touches being applied, and it anticipates receiving its certificate of occupancy in time to rent rooms to students at Berkeley starting at the beginning of the Fall 2024 semester. This progress significantly reduces construction risk, providing a sense of security to investors. The developers have contributed $8.8 million plus $11.2 million of their own capital to this project and expect to replace their qualified bridge loan with EB-5 investor capital. This will reduce their cost of capital and provide EB-5 investors with an opportunity to earn a Green Card. Investors benefit from a 3.5-year repayment timeline, which is shorter than the typical 5 to 7-year EB-5 investment periods prevalent with many projects. This shorter timeline appeals to those who prefer not to have their equity tied up for extended periods. With three prior I-526 petition approvals and all the required EB-5 jobs already created, the project poses limited immigration risk. Investors can feel confident about their prospects for immigration success and the potential for their investment to start generating income soon.

$20 Million Developer Contribution

Capital Stack

The developers have contributed over $20 million of their own capital to this project. A portion of the capital stack, representing $11.2 million, was contributed by the project owners and was intended to be replaced by EB-5 investors. This replacement allows the EB-5 investors to benefit from the job creation generated b yreplacing this investment. The developers then plan to use the EB-5 capital to reduce the senior loan, thus maintaining a significant portion of developer equity with a very manageable permanent loan.

Capital Stack
Strategic Location

A hub of education excellence and tech innovation

Strategically located near San Francisco and Oakland, Berkeley is a nexus of academic excellence and tech innovation. This vibrant city is uniquely positioned to offer the best of both worlds: the academic rigor of UC Berkeley and the entrepreneurial spirit of the Bay Area.

A hub of education excellence and tech innovation
Market Demand

A solution for the student-housing crisis

The University of California, Berkeley, suffers from a critical student housing crisis — a problem echoed by headlines from Forbes to The Washington Post. The Berkeley Student Housing project offers a solution for this demand with a prime location, modern units, and amenities and services that meet modern student needs.

A solution for the student-housing crisis
Meeting Student Needs

Ideal proximity to both campus and downtown Berkeley

Just a 15-minute walk from UC Berkeley, our housing project is a student's dream come true as it's also steps away from downtown Berkeley, a bustling hub of culture, dining, and entertainment. This ideal location makes our project a prime choice for students seeking a balanced lifestyle.

Ideal proximity to both campus and downtown Berkeley
Unit Diversity

From studios to two bedrooms

The diverse range of residences at Berkeley Student Housing is carefully curated to suit every preference — a selection from efficient studios to generous two-bedroom apartments, each designed with the modern student in mind.

From studios to two bedrooms
All-inclusive

Furniture, utilities, and housekeeping included

Students value the straightforward and ready-to-use nature of this housing option. Each unit comes furnished, simplifying the moving process, and the rent covers all utilities, streamlining bill payments. Additionally, housekeeping services enhance the attractiveness of these units. For busy students seeking simplicity in housing, this project perfectly meets their needs.

Progress

April 2024, on-site report — nearing completion

In April 2024, Berkeley Student Housing developer Kevin Tsui provided an on-site update showcasing the exciting progress of the project. Watch the video to learn about: Key deal terms, including the 3.5-year investor repayment timeline. Jobs already created for EB-5 requirements. Remaining EB-5 investor spots. The prime location of the project. Building equity and revenue projections. Expected completion date. Unit interiors and building amenities. All-inclusive billing features. Property management experience.

Disclosure

*Preferred returns are part of the deal structure and indicate the sequence of how distributions (from operations or a capital event) are disbursed. They are not guaranteed and should not be considered a financial projection. Actual cash flow and/or distributions from the Company may differ from the preferred return. If the Company's net cash flow falls short of covering the preferred returns owed, any outstanding balance will accrue until there are adequate funds or proceeds from a capital event to fulfill the annual return obligations. The Company's Manager reserves the right to withhold all net operating cash flow earmarked for investors, opting instead to accumulate these funds until the repayment of Capital Contributions. Investors should review the PPM and the respective offering documents from the Company for full details.

Disclaimer

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