Tuesday, April 27, 2021

EB-5 Program & Real Estate Development

Based in Portland, Oregon, Barclay Grayson serves as senior vice president of BPM Real Estate Group. In this role, Barclay Grayson acquires and develops real estate in Portland while seeking out opportunities for funding, such as Opportunity Zone and EB-5 sources. The EB-5 program allows foreign investors to secure permanent residency by investing a certain amount of money in a commercial enterprise that results in the creation of at least 10 full-time jobs. Because construction jobs count, EB-5 has become a significant funding option for real estate developers.

Unfortunately, however, some developers feel that EB-5 is a quick way to get funding when compared to other lending sources, but the money can actually be quite slow in coming. Counting on using EB-5 funds at the beginning of a project often makes bridge financing necessary, as the EB-5 funding needs to be consolidated and processed before it is disbursed, and this can take time. In the past, this funding has been used with a five-year investment timeline, but this depends on the country providing the money. The Vietnamese timeline is more like seven years, and Chinese investments can take up to 15 years.

A more efficient way of using EB-5 money is by refinancing large construction loans. With this strategy, the developer’s equity gets replaced by cheaper EB-5 funding, and the overall cost of capital can drop by up to 7 percent.

Friday, September 18, 2020

Published: Eligibility Criteria for Opportunity Zones

I published “Eligibility Criteria for Opportunity Zones” on @Medium https://ift.tt/3mryLxT

Thursday, September 10, 2020

Tuesday, September 1, 2020

Published: Portland’s Broadway Tower Earns LEED Gold

I published “Portland’s Broadway Tower Earns LEED Gold” on @Medium https://ift.tt/3lCzpYS

Wednesday, August 26, 2020

Published: A Look at the Dress Code and Traditions at the Polo Noir

I published “A Look at the Dress Code and Traditions at the Polo Noir” on @Medium https://ift.tt/2EuSlIa

Saturday, July 25, 2020

Published: cFunding Helps Build American Businesses

I published “cFunding Helps Build American Businesses” on @Medium https://ift.tt/2CLY37Q

Class A Investment Properties Bring Stability to a Portfolio

Barclay Grayson has worked with Portland, Oregon’s BPM Real Estate Group as senior vice president since 2003. His current responsibilities include directing the operations of BPM’s acquisition of commercial, hotel, multi-family, and senior living properties, as well as financing for new development. In handling acquisitions and financing, Portland’s Barclay Grayson and the BPM team focus on Class A buildings and complexes in upmarket locations across the country, with purchase prices in the $10 million to $50 million range.

In real estate buying and lending terms, Class A properties represent the best-quality investments in a market and geographic region in locations with upscale demographics. A Class A property also usually features newer construction, presents fewer infrastructure problems, and is characterized by a low rate of vacancy and tenant turnover. These properties can command the highest rents in an area, and they are considered the lowest investment risk among commercial investment buildings. Building aesthetics, infrastructure, location, amenities, and other factors are also typically of higher quality in Class A properties.

For investors in any type of commercial property, property class (“A,” “B,” or “C,” in decreasing order of building and location quality) is an important factor to take into account when assessing potential risk, as well as when gauging long-term expenditures. Each of the three classes of properties can offer investment advantages, but each also presents characteristic ratios of risk to return. Potential investors will need to strategize how a particular class of investment will play out regarding the needs of their overall portfolio.

The class type into which an investment falls can be expected to produce specific effects over the life of the investment. Class A properties, for example, offer the highest degree of stability and predictability in a portfolio.