May 10, 2017

EB5 Investment

Please refer to the business plan for complete details of the project

PROMOTOR: Kirk D. Eicholtz, CEO, Christian Tyler Properties, LLC (CTP)

Mr. Eicholtz and CTP have been the owner, developer, investor and/or part of the development team on over $1.0 billion of transactions, including 1.0MM square feet of office, industrial and “flex” space; 1.0MM square feet of retail; numerous large scale multifamily residential subdivisions; and senior care facilities (assisted living and memory care), multifamily apartment and condominium projects. In 2012, Mr. Eicholtz entered the EB5 platform through his acquisition of the Florida Equity & Growth Fund Regional Center LLC.

REGIONAL CENTER: Florida Equity & Growth Fund Regional Center LLC (“FEGFRC”). FEGFRC with CTP and its partners has raised in excess of $200 million in EB5 funds for job creating enterprises.

LAW FIRM: Arnstein & Lehr, LLP

THE PROJECT: The North Carolina Senior Living project is the development, construction, and operation of five (5) new Assisted Living and Memory Care Facilities in various cities throughout North Carolina.  The Project intends to qualify as a new, actual, for profit project eligible for immigrant investor funding in exchange

for United States, permanent resident status for qualified participants under the EB5 Immigrant Investor Program (“EB5

Program”).

Upon stabilization of the Project, one of the exit strategies is to utilize “Section 232” debt to refinance the construction and EB5 debt components.

Assisted Living and Memory Care Facilities are housing facilities for elderly people, whose average age is 80-85, who may need some assistance with daily living activities and care . These facilities provide supervision or assistance with activities of daily living; coordination of services by outside health care providers; and monitoring of resident activities to help to ensure their health, safety, and wellbeing. Assistance may include the administration or supervision of medication, or personal care services provided by a trained staff person. Assisted living is a philosophy of care and services promoting independence and dignity.

FINANCIALS:

TOTAL COST: $51.3M

EB5 INVESTMENT: $24M (46.7%)

BANK LOAN: $22.3M (43.5%)

EQUITY: $5M (9.8%)

BEFORE RAISING EB5 CLIENTS: The project is fully monetarized by CTP, thus ensuring the project will be realized for the benefit of EB5 clients.

NUMBER OF EB5 INVESTORS: 48

Smaller number of investors provide for faster refund to clients at exit strategy, because time elapse for case processing at USCIS between 1st and last investor is shorter.

JOB CREATION (including direct

construction industry jobs): 1,028 or 21 per EB5 investor

NET JOB CREATION:754 or 15,7 per EB5 investor

CONSTRUCTION TO BEGIN: Q1 2017

EXIT STRATEGY

(or refund of EB5 clients): Upon stabilization of the Project, one of the exit strategies is to utilize “Section 232” debt to refinance the construction and EB5 debt components, thus not solely relying on market conditions and bank loan available at refinancing.

S232 allow for refinancing up to 80% of market value of the project at stabilization.  The fully stabilized market value is estimated at $79.8M, generating $67.7M using S232 financing facility, which cover more than the initial investment of $51.3M (including $24M EB5 investments).

 

North Carolina Senior Living Brochure