PAST PROJECT
Thompson Palm Springs Hotel
- Palm Springs, California
- |
- High-Unemployment Area (HUA) EB-5 project
Located in Downtown Palm Springs, California, the Thompson Palm Springs Hotel is a full service luxury resort hotel, including 36,800 square feet of upscale boutique and restaurant retail space. As one of California’s most stylish cities, Palm Springs offers a variety of entertainment and cultural experiences that have proven to be large draws for both locals and foreign and domestic travelers.
The hotel is designed as a collection of small buildings with bungalow-style guest rooms surrounded by an unmatched variety of premium amenities. The hotel will boast a dynamic mix of 168 units, with 18 suites ranging in size from 556 square feet up to 1,745 square feet, including private outdoor patio space.
Project Summary
Location
400 N. Palm Canyon Drive, Palm Springs, CA
Developer
HALL Group
Hotel Flag
Thompson Hotels (owned by Hyatt)
Construction Status
Completed
Estimated Jobs at Completion
15+ Total Jobs per Investor
Total Project Cost
$165M
Total EB-5 Capitalization
$78.4M
Investment Required
$800,000
Structure
Secured Debt
Loan Term
3 years + 1 + 1
Client Testimonial
As a part of my due diligence for an EB-5 application for my son, I visited the construction site of the Thomson Hotel in Palm Springs, California, by the HALL Group. The hospitality extended by LCR and by HALL was much appreciated. I got to see the development firsthand, as well as understand the ongoing construction, the progress status and the goals of the team on the ground. Having been in the engineering and construction industry for several decades, I came away satisfied that the developers are committed to the timely completion, usage of quality materials and focused on the overall end goal of delivering a high-end project to the Palm Springs community.”
Dip Kishore Sen
Member of ECom & Advisor to Chairman & MD for Development Projects, Minerals & Metals, LTSSHF & L&T Aviation
Media Coverage
FAQs
How does the ‘’at risk’ requirement interact with the various ‘’guarantees’’ that LCR Capital negotiates with the developer on the fund level?
The EB-5 Immigrant Investor Program’s “at risk” requirement, mandated by the US Citizenship and Immigration Services (USCIS), ensures investments carry risk without direct guarantees to individual investors. LCR Capital’s fund-level guarantees comply with this rule while enhancing investor protections.
- Fund-Level Guarantees: LCR Capital negotiates guarantees at the EB-5 fund level, not between developers and individual investors. These fund-level protections, such as denial, project completion, or loan repayment guarantees, apply to the investor cohort collectively, maintaining compliance with USCIS regulations.
- No Conflict: The “at risk” requirement applies at the individual investor level, while LCR’s guarantees operate at the macro fund level, ensuring no direct promises are made to individual investors, thus adhering to EB-5 rules.
What are the criteria used to evaluate the I-829 petition?
The U.S. Citizenship and Immigration Services (USCIS) evaluates I-829 petitions based on the following key criteria:
- Creation of at Least 10 Full-Time Jobs
The investor must demonstrate that their investment in the New Commercial Enterprise (NCE) has created or preserved at least 10 full-time jobs (minimum 35 hours per week) for qualifying US workers, excluding the investor and their family. For direct investments, this requires evidence such as payroll records or tax documents. For regional center investments, an economic impact report, typically provided by the regional center to the investor and their attorney, may be used to verify direct, indirect, or induced job creation. - Sustained Investment
The investor must prove that the required investment ($1,050,000 or $800,000 in a Targeted Employment Area) has been sustained throughout the two-year conditional residency period and remains “at risk.” This includes providing financial records, business documents, or other evidence showing the investment was maintained and not withdrawn. - Compliance with Physical Presence Requirements
The investor must show they have not abandoned US residency. While there is no strict 183-consecutive-day rule, extended absences from the US (typically over six months) may raise concerns about residency intent unless justified, such as with a re-entry permit obtained from USCIS prior to departure.
What are the reasons why a petition may be denied? Would the capital invested be returned?
I-526 Petition Denial Reasons: An I-526 petition may be denied for the following reasons:
- Inadequate Source of Funds Documentation
USCIS may deny the petition if the investor fails to provide complete and transparent documentation proving the lawful source of the invested capital, such as a clear paper trail from sources like salary, property sales, or gifts to the New Commercial Enterprise (NCE). - Non-Compliant EB-5 Project
The petition may be denied if the project does not meet EB-5 program requirements, such as lacking a valid I-956F approval for regional center projects, failing to qualify as an NCE, or not demonstrating the creation or preservation of 10 full-time jobs.
Working with a reputable regional center and experienced immigration attorney is crucial to ensure compliance with USCIS requirements for both the source of funds and project structure. In the event of an I-526 denial, industry best practices typically include provisions in the project’s Private Placement Memorandum (PPM) for returning the investor’s capital, often within 90 to 180 days, depending on the project’s escrow agreement.
I-829 Petition Denial Reasons: An I-829 petition may be denied for the following reasons:
- Failure to Create or Sustain Required Jobs
The petition may be denied if the NCE does not create or preserve at least 10 full-time jobs (minimum 35 hours per week) for qualifying US workers, as evidenced by payroll records or economic reports for regional center projects. - Failure to Maintain US Residency
The investor must demonstrate they have not abandoned US residency during the two-year conditional residency period. Extended absences (typically over six months) without a re-entry permit may lead to denial, as USCIS evaluates residency intent.
Capital Return After Denial: For an I-526 denial, the return of capital is governed by the project’s PPM, which typically outlines refund procedures, with funds often returned within 90 to 180 days, depending on escrow terms. For an I-829 denial, investors may request capital return after the conditional residency period, as the investment is no longer required to remain “at risk” post-I-829 filing. However, the timing and feasibility of the return depend on the project’s structure and loan repayment terms outlined in the PPM. A denial at the I-829 stage does not typically require a separate request for capital return if already initiated.
After my I-526 petition approval, may members of my family have their consulate interview in different countries?
US Citizenship and Immigration Services (USCIS) permits EB-5 family members to attend consular interviews in different countries. Typically, interviews are held in the country of origin or where family members have current ties. However, a family member, such as a student studying in the US, may apply for adjustment of status at a USCIS district office instead of returning to their country of origin for consular processing.
It is recommended that family members attend their consular interviews together in the same country to ensure smoother and faster processing for all involved.
What is a Follow-to-Join petition?
The Follow-to-Join benefit allows the spouse and unmarried children under age 21 of a lawful permanent resident (Green Card holder) to obtain immigrant visas and Green Cards without filing separate immigrant petitions for each dependent. This benefit applies only if the familial relationship (spouse or child) existed when the principal applicant was granted lawful permanent resident status and if the principal’s Green Card was obtained through a preference-based visa category, such as the EB-5 program. Eligible dependents can apply for immigrant visas at a US embassy or consulate abroad or, already in the US, adjust their status through US Citizenship and Immigration Services (USCIS).