Luxury living by Fairmont at the gateway to the Blue Ridge Mountains. A world-class, full service Residential Condominium on 3½ mountain-view acres in the heart of historic Hendersonville, Western North Carolina.
This $21,000,000 EB-5 offering will provide 20 investors and their families the opportunity to obtain lawful permanent residency in the United States. The offering proceeds will be used to fund construction of the Fairmont Heritage Place The Cedars in Hendersonville, North Carolina.
Specifically, this EB-5 Project will consist of the construction of two six story towers (Pisgah and Dupont respectively) featuring a total of 130 Fairmont branded residences, and the renovation and restoration of the historic Cedars Hotel located on-site, which will feature signature Fairmont amenities.
The Fairmont branded residences will consist of impeccably designed units ranging from studios of approximately 500 SqFt to Penthouses of up to 3,635 SqFt.
This world class property is designed as a private resort and will house a signature Fairmont operated restaurant, multiple pools, a spa, and more. Fairmont Heritage Place The Cedars is being developed by Cedars Lodge & Spa, LLC which is managed by well known real estate developer Gregg Covin.
Fairmont is an iconic hospitality brand known for exceptionally elegant hotel properties in many of the world’s most extraordinary cities and vacation destinations. It is owned by Accor, which is the sixth largest hospitality company worldwide, operating in 5,300 locations in over 110 countries.
Branded-Residence Ownership
Ownership of a branded residence by Fairmont provides value and benefits resulting from its long, global experience in the hospitality and real estate sector. Owners can live in their units, rent them independently, or place them in the Fairmont managed short term rental program, allowing Fairmont to rent the units as traditional hotel rooms.
Unit owners enjoy:
- Distinction as a property by a known and respected brand
- VVIP status in the Accor Ownership Benefits Program
- Assurance of privacy, exclusivity, luxury, and prestige
- Excellence in design and innovation
- Professional management
- 24/7 on-demand services
The World of Accor
Hospitality brands owned by Accor span the globe and set a level of excellence and innovation
that is appreciated by the world’s most discriminating travelers.
Fairmont Heritage Place – The Cedars (“Residential Project”) is not owned, developed, or sold by Accor Hotels & Resorts (Maryland) LLC or its affiliates. Cedars Lodge & Spa, L.L.C., a North Carolina limited liability company (“Licensee”), is independently owned and operated and is solely responsible for the ownership, development, and operation of the Residential Project. Licensee uses the Fairmont Brand and certain Fairmont trademarks pursuant to a limited, non-exclusive, non-transferable and non-sub licensable license from Accor Hotels & Resorts (Maryland) LLC.
Return of Capital in Three Years
USCIS has confirmed the shortened investment sustainment period described in the EB-5 Reform and Integrity Act of 2022. This has enabled the Fairmont Heritage Place—The Cedars EB-5 project to provide a three-year loan term to EB-5 investors—one of the shortest EB-5 loan terms on the market.
Due to (i) strong presales; (ii) an executed 3-year loan agreement; and (iii) an intercreditor agreement signed by the senior lender, this is one of the few EB-5 projects on the market in a position to return EB-5 capital in three years.
Annual preferred Return
The Fairmont Heritage Place—The Cedars EB-5 project offers investors a 5.0% annual preferred return, one of the highest returns in the industry.
This project provides (i) an expedited return of capital; (ii) an above average rate of return; and (iii) the safety of a globally renown hospitality brand.
Compared to the 6+ year investment terms and minimal annual returns—often less than 0.5% per year—offered by most Regional Center EB-5 Projects, this project will return the $1,050,000 investment after 3 years and additionally pay a total preferred interest of $157,500.
Please see the investment simulation below:
Capitalization Table
The developer estimates that the condominium sales in the first two buildings will exceed $120 million. This is sufficient to complete construction and pay back the Senior Loan, EB-5 Loan, and Mezzanine Loan. All unsold units (if any) will operate as traditional hotel rooms managed by Fairmont, creating additional revenue for the EB-5 project.
* The developer has secured a senior revolving construction loan with a maximum balance of $32mm. The developer will use the first $32mm to partially fund construction of the Pisgah Tower. Once the $32mm is paid back (through condo sales/operations), the developer will have access to an additional $32mm of senior loan proceeds. Because this is a ‘revolving’ loan, there will never be more than $32mm of senior loan proceeds ahead of the EB-5 loan.
Project Security
Senior Loan
The project has secured a senior revolving construction loan from Fuse Group Funding with a maximum balance of $32.0 million.
This loan is being used to fund construction of the Pisgah Tower.
Then, revenues generated through sale/operations of the Pisgah Tower will be used to repay the drawn balance.
Once repaid, the Developer will use the senior revolving loan to fund construction of the Dupont Tower. Once again, sales/operations from the Dupont Tower will be used to repay the drawn balance.
Senior Loan and EB-5 Loan Security
The Senior Loan is secured by a first recorded security interest on the property in favor of Fuse Funding. The EB-5 Loan is secured by the second recorded security interest on the property.
The benefit of the ‘revolving’ loan is that there will be at most $32 million ahead of the EB-5 loan’s second-lien position.
An Appraisal Report prepared by CBRE, Inc. estimated The Fairmont Heritage Place The Cedars to be worth $164,500,000 at completion, far exceeding the debt on the property.
Revenue generated by Dupont tower sales will be used to repay remaining senior and EB-5 loans.
EB-5 Step-By-Step Process
Step 1: Choose an EB-5 Project
The required EB-5 investment amount is either (a) $1,050,000 or (b) $800,000 if the project is located in an area of high unemployment (TEA). By investing in a non-TEA project, investors do not have to rely on ever-changing TEA requirements. ﾠThis project is intentionally located in an area of low unemployment, so the investment amount is $1,050,000.
An area with a strong local economy was chosen to increase the likelihood of project success and repayment.
This project provides a Completion Guaranty and a I-526E Denial Guaranty for the benefit of EB-5 investors.
Step 2: Submit the I-526E Petition, Immigrant Petition by Regional Center Investor
The applicant executes the subscription agreement and wires his/her EB-5 investment capital to escrow. The investor, with assistance from his/her immigration attorney, files the I-526E Petition. If the EB-5 applicant is physically present in the United States and meets eligibility requirements, he/she can file for U.S. residency concurrently with the I-526E.
Step 3: After I-526E Petition Approval, an Investor Files to Become a U.S. Conditional
Permanent Resident
If the Investor is Inside the U.S. and has not Concurrently Filed: I-485, Application to Register Permanent Residence or Adjust Status. If the Investor is Outside the U.S.: DS-260 (consular processing) in the investor’s home country (or third country).
Step 4: The EB-5 investor is a U.S. Conditional Permanent Resident for two years,
with all of the same rights as a Permanent Resident
At the end of the two year period of conditional residency, the EB-5 investor files an I-829, Petition by Investor to Remove Conditions on Permanent Resident Status.
Step 5: U.S. Permanent Residency and Naturalization
Once the I-829 Petition is approved, the investor becomes a U.S. permanent resident and may petition for naturalization
4 years and 9 months after acquiring conditional residence.
Job Creation
To qualify for an EB-5 visa, the EB-5 project must create ten jobs for each EB-5 investor.
As a Regional Center sponsored project, direct, indirect, and induced jobs may be counted towards this job creation requirement.
The EB-5 Economic Impact Analysis performed states that the Fairmont Heritage Place
The Cedars will generate 686.2 permanent and full-time jobs as a result of its construction and operations.
Each EB-5 investor will be assigned approximately 34.3 jobs, more than 3x USCIS requirements.
Concurrent Filing - Explained
The EB-5 Reform and Integrity Act of 2022 (RIA) significantly improved the EB-5 process.
For the first time, a qualifying individual present in the U.S. may simultaneously file his/her Form I-526E (EB-5 petition) and Form I-485 (application to adjust status). This means that EB-5 investors present in the U.S. can now live in the U.S. while awaiting adjudication of their EB-5 petitions.
EB-5 investors (and their spouses and dependents) present in the U.S. admitted in valid
non-immigrant visa categories such as H-1B, E-2, F-1, or L-1 can now (i) remain
in the U.S., (ii) obtain work authorization, and (iii) obtain travel permits.
For instance, F-1 students can now remain in the U.S. after graduation without the obligation to find training or an employer sponsor. This provides them with unprecedented freedom to engage in entrepreneurship and not be tied to one specific employer.
EB-5 Benefits
An EB-5 visa provides U.S. permanent residency to the investor, his or her spouse, and their children under 21.
U.S. permanent residency presents numerous opportunities for a better future.
Some examples are:
Employment Flexibility
Change jobs as often as you like. Travel Flexibility Leave and enter the U.S. freely, without a visa.
Education
Lower college and graduate school tuitions.
Social Security
Receive retirement benefits after contributing to the
U.S. Social Security program.
Healthcare
Receive superior healthcare and Medicare health
insurance benefits.
U.S. Citizenship
Eligible for U.S. citizenship after 4 years and 9 months.
Developer Experience
Gregg Covin is the Manager of Cedars Lodge & Spa LLC.Over the last 25 years, he has set the standard for cutting edge developments in the region. His portfolio highlights include:
One Thousand Museum
In 2012, Covin and his partners acquired the last remaining
waterfront skyscraper site in Downtown Miami and commissioned renowned architect Zaha Hadid to design her first tower in the Western Hemisphere. The 709-foot-tall One Thousand Museum was completed in 2018 and has been seeing price records including a $20 million penthouse sale to soccer star David Beckham.
Ten Museum Park
In 2007, Covin completed development of the world famous Ten Museum Park mixed use tower on the Downtown Miami waterfront. This 50-story crystalline tower was designed by Chad Oppenheim and sold out all 200 condominiums in nine days. The tower features an outpost of the number one ranked spa in the world and was developed in conjunction with the world-famous Clinique La Prairie of Switzerland.
Kimpton Angler’s Hotel
Covin’s Angler’s Hotel was a massive urban revitalization project as it encompassed the entire 600 Block of Washington Avenue in Miami Beach. This hotel was designed by the world-famous designer of the Versace Mansion, the late Wallace Tutt, and was awarded the Dade Heritage Award for Historic Preservation. It is now known as the Kimpton Angler Hotel.
construction team
General Contractor—Turner Construction, LLC
With a staff of over 10,000 employees in over 20 countries, the company completes $12 billion of construction on 1,500 projects each year. Representative projects include the 73-story Wilshire Grand Hotel in Los Angeles, California, and The Terranea Resort in Rancho Palos Verdes, CA, a 360-room luxury hotel tower with 102 acres of infrastructure.
Architect—RBA Group, Inc.
Formed in 1999, the firm has worked on projects in 26 states, including the Hyatt Place in Asheville, NC; Homewood Suites in Charleston, SC; and other breweries, restaurants, and medical parks.
Civil Engineer—Civil Design Concepts, PA.
Headquartered in Asheville, NC, Civil Design Concepts has completed over 1,700 site development projects throughout Western North Carolina, Eastern Tennessee, and upstate South Carolina.
EB-5 Fund Management Team
Bennett Blachar, Co-Manager of the NCE Manager
Bennett Blachar, an attorney licensed in Florida and New York, gained his initial experience in the EB-5 industry while working at Saul Ewing Arnstein & Lehr LLP, a reputable firm that represents developers and EB-5 investors. Currently, he is the general counsel for both EB5 for Florida Regional Center and EB5 Restaurants, LLC. These organizations are trailblazers in the restaurant sector of the EB-5 industry and have successfully raised EB-5 investment capital for renowned chefs and brands that have received James Beard and Michelin Star awards. As general counsel, Mr. Blachar provides advisory services to three distinct EB-5 investment funds.
Jennifer Zawid, Co-Manager of the NCE Manager
Jennifer Zawid, a Florida-barred attorney, possesses extensive experience in the EB-5 field. She previously held the position of VP at LCR Capital Partners, where she played a key role in legal and compliance matters, governmental affairs, and business development. Prior to her tenure at LCR, Ms. Zawid worked as a lawyer for Fort Partners, focusing on real estate acquisitions, EB-5, and general legal matters. Ms. Zawid has served as a Senior Enforcement Attorney with the U.S. Securities and Exchange Commission, and as a Staff Attorney at the U.S. Department of Justice/Civil Division/Office of Immigration Litigation. Recently, Ms. Zawid obtained an LLM in Real Estate Development from the University of Miami School of Law.
Michael Conaghan, Co-Manager of the NCE Manager
Michael Conaghan is a seasoned real estate professional with a career spanning over 37 years. He has an extensive background in residential, hospitality, and mixed-use real estate properties, as well as extensive expertise in development, debt and equity finance, acquisition, disposition, and asset management. Throughout his career, Mr. Conaghan has successfully handled significant debt and equity transactions totaling over $4.5 billion. He was a founding partner at Fort Partners, LLC, where he oversaw all property acquisition, financing, structuring, and dispositions, and was instrumental in the development of their award winning luxury hotels and condominiums, including renowned properties such as the Four Seasons Hotels in Surfside, Palm Beach, Miami, and Fort Lauderdale, Florida. Prior to that, he held prominent positions in development, finance and asset management for notable companies such as GreatWolf Resorts and life insurance companies.
Spencer Berstein, Co-Manager of the NCE Manager
Mr. Bernstein holds the position of Managing Director at EB5 Restaurants, LLC, a pioneering company in the restaurant sector of the EB-5 industry. He is also an associate at EB5 for Florida Regional Center. With a Bachelor of Arts degree from Stetson University, Mr. Bernstein primarily focuses on fund administration, sales, and marketing. When the EB-5 Regional Center program lapsed in 2021-2022, he helped EB5 Restaurants, LLC raise over $10 million of EB-5 funds through direct EB-5 restaurant offerings.
Regional Center
Experience
The project is sponsored by EB5 Affiliate Network State of North Carolina Regional Center, part of the EB5 Affiliate Network — the largest EB-5 regional center operator in the U.S.
With more than 10 USCIS approved regional centers covering 20+ states, EB5 Affiliate Network has raised more than $900 million of EB-5 funds, and has sponsored over 1,800 EB-5 investors. Through its Regional Center projects, EB5 Affiliate Network has created more than 34,000 EB-5 qualifying jobs and has a 100% approval rate on USCIS adjudicated projects.
In addition, the EB5 Affiliate Network team has industry-leading EB-5 and real estate knowledge, having been been involved in more than $3 billion of leveraged buyouts, IPOs, and real estate development.
As its Regional Center sponsor, EB5 Affiliate Network will oversee Regional Center compliance for The Fairmont Heritage Place - The Cedars EB-5 project.
EB-5 PROJECT SUMMARY
Project Highlights
- $21,000,000 EB-5 offering ($1,050,000 for 20 investors) to fund construction of a Fairmont branded residence nestled between
the Blue Ridge Mountains and the Great Smoky Mountains in Western North Carolina. - EB-5 investors will receive a 5.0% annual preferred return on their investment—one of the highest in the industry.
- 3-year loan term ensures fastest possible repayment of capital.
- Job creation figures are estimated at 34.3 jobs per EB-5 investor, more than 3x USCIS requirements.
EB-5 Loan Payback & Security
- EB-5 payback will come principally from condominium sales and hotel revenue. More than 65% of the units in the first building are already pre-sold.
- The EB-5 loan is secured by a second mortgage on the property.
- The developer has signed (i) a construction completion guaranty; and (ii) an I-526E denial repayment guaranty.
- $1,050,000 EB-5 investment to fund construction of a Fairmont branded historic hotel with 130 luxury condominium residences in Hendersonville, North Carolina. Units are already being pre-sold at some of the highest price p/s/f in Western North Carolina.
- EB-5 investors are offered a 5.0% annual return on their investment—one of the highest in the industry—and a full return of capital after six years. If permitted by USCIS regulation, the loan term will be reduced to 3 years.
- New EB-5 laws provide more flexibility than ever: Non-immigrants such as H-1B; F-1; E-2; TN; and L-1 visa holders can now file EB-5 petitions and concurrently file to adjust their immigration statuses.
- The EB-5 loan is secured by a second mortgage on the property behind only a senior revolving construction loan. In addition, the developer has provided EB-5 investors with (i) a construction completion guarantee; and (ii) an I-526E denial guarantee.
- Job creation figures are estimated at 34.3 jobs per EB-5 investor, more than 3x USCIS requirements.
- Located 15 minutes from the Asheville Regional Airport, this is the first Fairmont branded property in the Southeastern United States. Fairmont is owned by Accor Hotels, the second largest operator of luxury hotels in North America.
- This Project is not located in an area of high unemployment (TEA). Rather, Henderson County has only a 3.2%unemployment rate. North Carolina boasts the 3rd highest population growth in the U.S. after Texas and Florida, and is currently ranked 2nd in the U.S. for its economic outlook.
Concurrent Filing
- Investors and their family members present in the U.S. on non-immigrant visas may now file EB-5 petitions concurrently with their I-485 Adjustment of Status applications and remain in the U.S. while their EB-5 petitions are pending.
Hendersonville, North Carolina
- This project is the first Fairmont branded residence in the Southeastern U.S.
- Hendersonville, NC is a historic city and part of the Western North Carolina/Asheville corridor. It is a 15 minute drive from the Asheville Regional Airport, in close proximity to Pisgah National Forest and DuPont State Recreational Forest.
- This Project is not located in an area of high unemployment (TEA), as Henderson County has only a 3.2% unemployment rate. Hendersonville is experiencing significant growth, as home prices have increased 55.4% in the past 5 years.
