Kushner family s Beijing gaffe exposes EB-5 s fault lines Company’s “incredibly stupid” behavior puts cash-for-green card program back in spotlight
Nicole Kushner Meyer, sister of Jared Kushner, and her husband Joseph Meyer at Kushner Companies EB-5 pitch in Shanghai (credit: Getty Images)
Jared Kushner s role in the White House has made his family s EB-5 project in Jersey City notorious worldwide. But EB-5 insiders say any shady behavior by Kushner Companies is par for the course in a program that is opaque by design.
EB-5 capital has been dubbed the “crack cocaine” of real estate financing, with U.S. developers seeing it as a cheap alternative to traditional bank financing and a part of the capital stack that grows in importance as funds from banks dry up. Critics say developers abuse the program by using it to build luxury residences in prime neighborhoods rather than stimulating low-employment areas, which was what the program was designed to do.
But critics say the Kushner family may have pushed the limits further still by touting its connections to the Trump administration while soliciting EB-5 money for One Journal Square, a $400 million, two-tower project in Jersey City. Pitching the project to Chinese investors over the weekend at a Ritz-Carlton hotel in Beijing, Kushner’s sister Nicole Kushner Meyer referenced her brother’s role in the White House. The pitch event also included a presentation that displayed a photo of President Trump, though a spokesperson for Kushner said the picture was displayed by event s organizers, not Kushner Companies. Former White House ethics czar Richard Painter called the attempts to cash in on the Trump-Kushner connection “incredibly stupid and highly inappropriate.”
Rendering of One Journal Square
During the Beijing pitch, Kushner Companies did not disclose major obstacles at the project, which, according to Bloomberg, included the loss of its anchor tenant WeWork and the potential loss of $30.4 million in city bonds and a 30-year tax abatement issues that 上海同城对对碰交友社区 could potentially put investors’ money at risk. And the project cost, according to the pitch deck, was nearly $1 billion, Bloomberg reported, more than twice the projected cost that Kushner Companies pitched to the New Jersey Economic Development Authority in November 2015. The number of planned units in the pitch deck is also nearly double the 744 originally d爱上海同城 escribed.
A Kushner Companies spokesperson declined to comment for this story, though the company did issue an earlier statement in which it apologized if Nicole’s mention of the connection to Jared was interpreted as an attempt to lure investors. But industry insiders said the gaffe has put renewed scrutiny on a program that some politicians and activists have described as a v阿拉爱上海同城 ehicle for dirty money to enter the U.S, one that is susceptible to fraud and corruption by developers. The EB-5 program was extended through September, as part of an appropriations bill President Trump s[……]