Wednesday, February 19, 2014

Chinatown's $70M tower gets funding source



Philadelphia Chinatown Development Corp. has helped form an immigrant investor regional center that will seek to raise $32.5 million to fund its Eastern Tower Community Center in Chinatown.

The 23-story mixed-use development at 10th and Vine streets will cost a total of $70 million. It already has a $42 million commitment from Citi Community Capital.

PCDC helped form and is a limited partner in Global City Regional City, which is referred to as an “EB-5” under the federal immigration code. It allows for the establishment of entities that promote foreign investment in projects that also create or preserve a certain number of jobs. In return, that foreign investor can receive residence in the United States. How much an investor has to put up depends on the project but is typically between $500,000 and $1 million.

Global City will funnel investment money from the international Asian community into the Chinatown development. The project will total 227,000 square feet and include 144 apartments, offices, recreational and retail space as well as a parking garage.

“We are uniquely positioned with the Asian community and we are able to bring some investment from those areas into Philadelphia,” said the Rev. Tom Betz, who sits on PCDC’s board and oversees Holy Redeemer Church and School. “This is a huge project and the biggest community group project in Philadelphia.”

Betz believes that Global City has the potential to fund other community projects beyond Eastern Tower and may even spark other community organizations to form additional EB-5 entities to help finance them.

“We are on the vanguard,” Betz said. “I suspect others will see the potential for not only non-profit developments but for other development.”

The PCDC project has roughly $2 million more to raise in grants and other funding sources. It looks to break ground this summer on the development and complete it by 2016.

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