Monthly Project Report November 2015

Monthly Project Report
November 2015
Project Summary
Manhattan, West 57th between 11th and 12th Avenue
• 41-story mixed-use tower
• 944,339 square footage
• 711 residential apartments
• 44,857 square feet of retail space
• 78,428 square feet of lobby space and residential amenities
• 285 below-grade parking spaces
• Views of the Hudson River
Job Creation: 4.896 jobs
Total Investment: $685 Million
EB-5 Mezz Loan
Project Immigration Status Update
26%
Approved Including Family
$180 Million
TOTAL
BUDGETED
COSTS
$685 MILLION
60%
14%
Developer's Equity
I-­‐526 Petitions Approved
$98 Million
I-­‐526 Petitions Filed
Investors Subscribed
$407 Million
Total EB-­‐5 Investors
Senior Loan
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Construction Update
Residential Construction:
• Self-leveling and kadex operations continued on the North side of the building
• BMU Track installation continued on the North, East, and South ridges.
• Con Edison’s underground street work on 58th street is complete in the direction of 11th avenue. The
smaller portion of work to 12th avenue is still pending NYSDOT approval.
• ·Con Edison has energized the second feeder of permanent power to the building.
• ·Mechanical coordination is ongoing and is currently signed-off through the 29th floor and floors 32
through 34. We are on hold for redesign of the 30th floor.
• Boiler Room and 16th floor mechanical room MEPS overhead installation andvequipment connections are
substantially completion.
October 2015
• Plumbing, HVAC Air and Sprinkler risers are substantially complete.
• MEPS horizontal work continues and is substantially complete on the south side through the 23rd floor.
• Fire alarm overhead work is roughed in to the 20th floor. Power to the system wasvenergized and vertical
check out of Fire alarm control panels and Data gathering panels is underway.
• Flushing of the hot water system is ongoing.
• MEPS commissioning meetings are being held regularly. Equipment start-up is underway.
• Mechanical installation is ongoing on the cooling towers and TOH mechanicalvrooms. Mechanical piping is
substantially complete on these floors.
• Apartment framing continuing through the 25th floor.
• GWB installation is ongoing through the 12th floor on the north side and the 9th floor on the south side.
• Taping installation is ongoing through the 9th floor on the north side.
• Self-leveling is ongoing through the 9th floor on the north side.
• Tile installation is ongoing through the 9th floor on the north side.
• Primed painting is ongoing through the 9th floor on the north side.
November 2015
• Kitchen cabinet installation is ongoing through the 9thd floor on the north side.
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Amenities Construction
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MEPS overhead work substantially complete on north side 2nd floor
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MEPS overhead work substantially complete south side 2nd floor
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GWB framing substantially on 2nd floor
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GWB installation ongoing on 2nd floor
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GWB ceiling ongoing on 2nd floor
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Courtyard concrete protection slab at path complete
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Courtyard landscape build up (sand) ongoing
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Courtyard plumbing and drainage work substantially complete
Facade
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Vertical wall
o Currently installing panels in Release TOH at the top of house.
o Continued installation of interior head and stool trim.
o Continued effort on addressing punchlist.
•
Sloped wall
o Currently installing panels in the following releases; 6 & 7.
o Continued effort on addressing punchlist.
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Construction Photos
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Construction Photos
October 2015November 2015
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Construction Photos
October 2015
November 2015
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In the News
Durst wants auto dealers to kick the tires at pyramid building
Developer requests zoning change to allow full-service dealership at Bjarke Ingles project
The Bjarke Ingels-designed pyramid building on the Far West Side is surely a draw to renters looking to lease an apartment, and soon it may draw those in the market to lease a new
car.
Developer the Durst Organization is the latest landlord to court a dealership as a retail
tenant in its Automobile Row-area apartment building at 625 West 57th Street. The company is looking to lease 35,000 square feet on the western side of the building – officially
dubbed Via 57 West – along Twelfth Avenue between 57th and 58th Streets.
The decision mirrors similar moves made by developers such as Two Trees Management,
which put a well-known German brand at the base of its Mercedes House at 54th Street and
Eleventh Avenue, and TF Cornerstone, whose site at 660 Twelfth Avenue will be home to a
300,000-square-foot Toyota dealership.
Douglas Durst and a rendering of the retail at 625 West 57th Street
The Moinian Group is also having auto salesman kick the tires at its 60-story Sky rental
building at 605 West 42nd Street, where the landlord has 70,000 square feet of retail space
available.
Landing a full-service dealership for Durst, however, isn’t as easy as the real estate equivalent of “sign and drive.” While an auto sales floor is allowed at the tetrahedron-shaped
building as-of-right, the developer needs the city to approve a zoning amendment that will
allow a tenant to include a service and repair shop to go along with it.
The Department of City Planning is currently reviewing Durst’s application. The landlord
recently signed the Livanos Restaurant Group to 7,000 square feet at the base of the starchitect-designed building, which will offer 709 rentals when complete next year.
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In the News
New Look: 625 West 57th Street, Bjarke Ingels’ West Side
Tetrahedron
Bjarke Ingels’ dramatic, tetrahedron-shaped rental building is already making its
mark on the far west side, and we have some fresh renderings to go along with a
new teaser site for the project at 625 West 57th Street, known as VIA 57 West.
The structure will reach 32 stories and 460 feet into the air, and developer Durst
Organization expects to finish installing exterior cladding by the end of the month.
The building will host 709 apartments, 142 of which will rent for below-market
prices through a lottery. Durst predicts that they’ll receive 20,000 applications for
the affordable units, but that seems low after 91,000 people vied for 234 below-market units at Sky, Moinian’s West 42nd Street tower. Optimistic readers who meet the
income requirements can download applications here and send them in by November 20th.
Ingels called the 800,000-square-foot building “the lovechild of a courtyard building and a skyscraper,” and these new images give us a better look at the irregularly
shaped outdoor space and its attractive landscaping. They also offer a close-up view
of the angled, protruding facade, which almost conveys the feeling that the exterior
is moving. The facade will feature sloping cutouts for terraces, the central courtyard
(which opens up to the Hudson River), and a pool on the lower floors.
Besides the signature courtyard and pool, the project will come with a slew of amenities, including a basketball court, fitness center, golf simulator, screening room,
and shared “living rooms” equipped with fireplaces, chef ’s kitchens, dining rooms
and outdoor terraces.There will also be 45,000 square feet of retail on the ground
floor.
Leasing is set to begin early next year, and residents are expected to begin moving
in sometime in the spring.
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In the News
New Look: 625 West 57th Street, Bjarke Ingels’ West Side
Tetrahedron - Continued Photos
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In the News
Durst Organization celebrates 100 years of development
in New York City
The Durst Organization hosted a reception last night (Wednesday) commemorating its 100-year
anniversary in the lobby of 4 Times Square.
The exhibit, which opened on August 26th, takes visitors through the history of both New York City
and The Durst Organization from the turn of the 20th Century to present day.
“It has been a privilege for The Durst Organization and my family to contribute to the development
of New York City over the past 100 years,” said Jonathan (Jody) Durst, president of The Durst Organization.
“My grandfather, Joseph Durst would have delighted in sharing our family history with New Yorkers
and all the City’s visitors. We have been blessed by New York City for a century and we look forward
to contributing to the architecture, development and culture of our City for the next 100 years.”
The exhibition traces the history of New York City over the last 100 years and the role that The
Durst Organization has played in the development of New York City’s skyline. It recounts the story
of Joseph Durst and his progeny from immigrant tailor, to clothing manufacturer, to real estate trader to his family’s transformation of Third Avenue in the 1950 and 1960s and their innovative and
trail brazing construction and development of sustainable buildings.
Three generations of Durst Family
Displays include rare photos from the company archives, time lapse videos and architectural models
from Emery Roth & Sons midcentury skyscrapers, to One Bryant Park and Bjarke Ingels’ VIA 57
WEST. Also on display are select artifacts and papers of the “Old York Library,” the personal collection of Seymour Durst, now housed at Columbia University’s Avery Architectural and Fine Arts
Library, that tell the history of New York and the Durst family through a unique collection of books,
postcards and New York City memorabilia and ersatz.
“As we move into the next 100 years, The Durst Organization will be opening three residential
buildings in 2016 that exemplify our commitment to sustainable construction and design,” said
Helena Durst, chief administrative officer of The Durst Organization.
“And we will close out 2015 with the groundbreaking of our first project outside of Manhattan, in
Astoria, Queens. The exhibit is an opportunity for us to commemorate our history as well as share
our plans for future development in New York City.”
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In the News
Durst Organization celebrates 100 years of development
in New York City - Continued
“I appreciate learning the business from the ground up – it has worked for all of us for 100 years,”
said Lucas Durst. “I’m sure that The Durst Organizations portfolio today would make my great
grandfather’s head spin. But, I know, if I listen closely, patiently learn the business from my colleagues, and adhere to the values that have defined our business from its inception; my great grandchildren will take the organization to unimaginable heights and celebrate its 200th anniversary.
And I will have left this place better than I found it.”
The Durst Organization, founded in 1915 by Joseph Durst, is the owner, manager and builder of 13
million square feet of premiere Manhattan office towers and 800 residential rental units, 1,150 under construction and 2,200 in the pipeline. The Durst Organization is recognized as a world leader
in the development of high-performance and environmentally advanced commercial and residential
buildings.
LUCAS DURST, A FOURTH GENERATION MEMBER OF THE DURST FAMILY.
DOUGLAS DURST, CHAIRMAN OF THE DURST ORGANIZATION.
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In the News
Durst signs veteran restaurateur at West 57th superblock
site
The Durst Organization announced that the Livanos Restaurant Group has a signed 20-year lease
for 7,000 s/f at VIA 57 WEST, the anchor building on the 57 WEST residential block.
The restaurant will be in the south east corner of the building adjacent to the main lobby.
“We’re pleased to partner with The Durst Organization on a project that we envision bringing fresh
energy to the area,” said proprietor Nick Livanos. “We’re looking forward to joining forces and playing an integral role in the development of the area by offering our signature hospitality and a place
for residents and visitors to gather.”
“We are proud that the Livanos family has selected VIA 57 WEST for their new endeavor and look
forward to working with Nick and his family on this project,” said Jonathan (Jody) Durst, president
of The Durst Organization.
Livanos Restaurant Group and The Durst Organization were both represented by Lee & Associates’
managing principal Peter Braus and senior managing director Brad Schwarz.
The Durst Organization was also represented in-house by Senior Vice President of Leasing Tom
Bow and Leasing Manager Ashlea Aaron.
VIA 57 West is a 709-unit residential rental building — 567 market rate and 142 affordable — with
44,000 s/f of retail space, a 22,000 s/f courtyard modelled on Central Park, numerous outdoor decks,
a gym, swimming pool, basketball court, party rooms, lounges, a library and game rooms.
Livanos Family
The legacy of the Livanos family began in 1957 when John Livanos immigrated to the United States
from Greece and began his career as a dishwasher, working for his uncle in Manhattan. He purchased his first restaurant three years later, and in 1985 opened the elegant Livanos Restaurant in
White Plains, NY.
Today, John Livanos and his children, Nick, Bill, and Corina, own and manage six successful restaurants.
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Legislation Update:
Capitol Hill Update: Progress of Renewal of the EB-5 Regional Center Program
In the last two weeks, the leadership offices of the Judiciary Committee of the U.S. House of Representatives – led by Chairman Goodlatte –and
the U.S. Senate – led by Chairman Grassley, together quietly circulated a revised draft of Bill S.1501. The revised draft of Bill S.1501 continued to
propose to renew the EB-5 Regional Center Program but in exchange for significant modifications of the EB-5 Regional Center Program’s rules.
At the same time, the revised draft of Bill S.1501 took important steps to improve on some of most controversial proposals found in the original
draft of Bill S.1501 from June 2015.
Among the positive changes included in the revised draft of Bill S.1501 revised draft included a 5 year extension of the EB-5 program, as well as
the introduction of fast processing of EB-5 petitions and pre-approval of EB-5 investment projects. Important rules were also included to add
better management practices to persons operating EB-5 Regional Centers, with the goal of improving investor protections.
The more controversial elements of the revised draft of Bill S.1501 were proposals to introduce key program changes retroactively to June 1,
2015, and to require immediately upon enactment that I-526 visa petitions could only filed if the project had been pre-approved by the USCIS.
Another controversial proposal were new rules to re-draw targeted employment areas to include 1 high unemployment census tract plus 1
more contiguous census tract.
These proposals were recognized as an improvement over the original set of ideas set out in the June 2015 draft of Bill S.1501, which included a
set of new rules prohibiting job creations strategies that would have made projects in urban areas nearly impossible to accomplish.
The revised draft of Bill S.1501 was uniformly met with serious reservations and deep concern for the practical workability of the proposals. The
idea of retroactively changing rules for investors who have filed visa petitions for EB-5 Regional Center Projects during the summer of 2015 was
met with loud voices of concern and rejection.
At the same time, observers and industry representatives recognized that the content of S.1501 could become workable if legislators ensured
that new rules would not be applied with retroactive effect, and the new rules were implemented progressively after a reasonable transition
period for existing projects to finish finding EB-5 investors.
With little time left before the expiry of the EB-5 Regional Center Program, most observers are hopeful that a workable solution will be achieved
to renew the EB-5 Regional Center Program for at least 1 year and up to 5 years after December 11, 2015. There is broad recognition on Capitol
Hill that the program has helped create tens of thousands of new jobs in the U.S.
I.A. Donoso & Associates LLC will continue to provide updates on the progress of renewal of the EB-5 Regional Center Program.
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A LETTER FROM
THE PRESIDENT
Since its 2009 inception, U.S. Immigration Fund has
successfully raised over $1.9 billion in EB-5 capital for real
estate development nationwide. This success is based on
our strong partnerships with international immigration agents,
attorneys and the developers we work with. With four USCISapproved Regional Centers in New York, New Jersey and
Florida, our company and network continue to grow.
17
PROJECTS
8.5 BILLION IN DEVELOPMENT
1.9 BILLION IN EB-5
3,750 EB-5 INVESTORS
53,000 JOBS TO BE CREATED
11,000 LIVES CHANGED
While many Regional Centers and projects struggled during previous years, USIF Regional
Centers received 100% I-526 approval, with some approvals received in as little as 14 days.
To date, U.S. Immigration Fund has partnered with leading developers across New York, New
Jersey and Florida to fund more than $1.9 billion of EB-5 capital, facilitate $8.5 billion in
development and create more than 53,000 new jobs.
The $8.5 billion portfolio of projects our firm has lent EB-5 capital to ranges from
mixed-use developments in Boca Raton, Florida to high-rise luxury residential
towers in New York City. The construction of these developments will create more
than 53,000 jobs and change the lives of more than 11,000 investors and their
family members.
The previous 12 months have been especially rewarding for USIF. Not only have
we successfully funded projects that are changing the New York skyline; we have
filed approximately 2,000 I-526 petitions and enjoyed a 100% approval rate from
USCIS on all adjudicated projects.
I am pleased to report that U.S. Immigration Fund is stronger than ever. 2015
promises to be another year of growth, strength and success.
Sincerely,
Nick Mastroianni II
President & CEO
INVESTMENT CONTACT
USIFund.com | [email protected] | tel 001 561-799-1883 | tel 001 855-EB5-USIF | fax 001 561-799-0061
Forward Looking Statement
This investor update contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and the
Company intends that such forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements include the plans and objectives of management for future
operations, including plans and objectives relating to the future economic performance of the Developer. The forward-looking statements and associated risks set forth in this investor update include or relate
to the successful implementation and operation of the Developer’s business plan for the project. All reporting is based off of information received from the developer. For more information on forward looking
statements please visit www.usifund.com/forwardlookingstatements
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