Why Puerto Rico? Understanding the Island’s Unique Investment Advantage

Adam Greenfader Investing Mastermind

Why Puerto Rico? Understanding the Island's Unique Investment Advantage

The Puerto Rico Investing Mastermind brought together investors, entrepreneurs, developers, attorneys, tax professionals, and economic development leaders to explore the opportunities reshaping Puerto Rico’s economy. Hosted in Condado, San Juan, the program focused on the island’s unique investment advantages, including its strategic relationship with the United States, Act 60 tax incentives, Qualified Opportunity Zones, real estate development, and emerging business sectors.

The program featured presentations and discussions led by Adam Greenfader, Chairman of AG&T; Ashley Tison, Opportunity Zone attorney and national expert; Brett Siglin, real estate investor and educator; Brian Bourgerie, entrepreneur and investor; Kathryn Morea, Puerto Rico business strategist; Joel Berrocal, economic development professional; Michael Gay, CEcD, economic development executive; Samira Yassin, CPA, Esq., tax and legal advisor; and Veronica Montalvo, business and investment advisor. Together, the speakers provided a multidisciplinary perspective on why Puerto Rico has become one of the most compelling investment destinations under the U.S. flag and how public policy, private investment, and entrepreneurship are helping shape the island’s next chapter of economic growth.

 

Puerto Rico occupies a unique position unlike anywhere else in the Caribbean.

As a U.S. territory, the island combines the legal certainty, financial framework, and market access of the United States with the strategic location, climate, and lifestyle of the Caribbean. This distinctive combination has made Puerto Rico one of the region’s most compelling destinations for business expansion, hospitality development, manufacturing, technology, and real estate investment.

These themes formed the basis of a recent Puerto Rico Investing Mastermind, where investors, entrepreneurs, developers, and business leaders came together to explore the opportunities shaping the island’s next chapter of economic growth.

Rather than focusing solely on individual investment opportunities, the discussion centered on a broader question:

Why is Puerto Rico attracting increasing attention from investors across the United States and around the world?

A Strategic Bridge Between the U.S. and the Caribbean

Puerto Rico offers advantages that extend far beyond its tropical setting.

Operating under the U.S. Constitution, federal banking regulations, intellectual property protections, and established legal framework, the island provides investors with a level of certainty that is difficult to replicate elsewhere in the region.

English and Spanish are widely spoken, the workforce is highly educated, and businesses benefit from direct access to the U.S. financial system while operating in one of the most strategically located jurisdictions in the Caribbean.

For companies serving both North American and Latin American markets, Puerto Rico functions as a natural gateway between the two.

A Competitive Tax Environment

Puerto Rico has also developed one of the most comprehensive economic development strategies in the United States.

Through Act 60, the island offers targeted incentives designed to encourage export services, advanced manufacturing, technology, research and development, hospitality investment, and new business formation. These incentives have helped attract entrepreneurs, investment managers, family offices, technology companies, and professional service firms seeking to establish long-term operations on the island.

The objective has never been simply to reduce taxes.

It has been to create jobs, diversify the economy, stimulate private investment, and encourage innovation across multiple industries.

As Puerto Rico continues to evolve, these incentives remain an important component of a broader economic development strategy focused on long-term competitiveness.

One of America’s Largest Opportunity Zone Markets

Another distinctive advantage is Puerto Rico’s extensive network of Opportunity Zones.

Approximately 98% of the island has been designated as Qualified Opportunity Zones, creating one of the largest concentrations of Opportunity Zone investment opportunities anywhere under U.S. jurisdiction.

These areas encompass urban redevelopment districts, waterfront communities, hospitality destinations, mixed-use projects, industrial properties, and significant portions of the island’s residential and commercial real estate market.

For developers and long-term investors, the Opportunity Zone program has provided an additional incentive to deploy capital into projects that contribute to economic revitalization while benefiting from favorable federal tax treatment.

Combined with local incentives, this creates a uniquely attractive investment environment.

More Than Tax Advantages

While incentives often attract initial attention, they are rarely the sole reason investors choose Puerto Rico.

The island offers a combination of characteristics that continue to drive long-term investment:

  • A highly educated bilingual workforce.

  • Strong manufacturing and life sciences sectors.

  • Expanding technology and innovation ecosystems.

  • Modern airports, ports, and telecommunications infrastructure.

  • World-class hospitality and tourism.

  • Access to U.S. capital markets.

  • A growing entrepreneurial community.

  • An exceptional quality of life.

Increasingly, investors are choosing Puerto Rico not simply because of tax policy, but because they recognize the island’s long-term economic potential.

A New Generation of Investment

Over the past decade, Puerto Rico has experienced the emergence of a new generation of entrepreneurs, investors, and business leaders.

Technology companies, digital asset firms, investment managers, manufacturers, hospitality operators, healthcare providers, and family offices have joined long-established local businesses in helping diversify the island’s economy.

At the same time, significant federal infrastructure investment has accelerated modernization efforts across transportation, energy, water systems, housing, and public facilities.

Together, these trends are creating one of the most dynamic investment environments in the Caribbean.

AG&T’s Perspective

Having worked in Puerto Rico for more than three decades, AG&T has witnessed the island’s remarkable evolution firsthand.

Our experience spans residential communities, hospitality developments, mixed-use projects, institutional advisory assignments, and strategic planning initiatives across the island.

Throughout that time, one lesson has remained constant.

Puerto Rico’s greatest strength is not any single incentive program. It is the combination of its people, its strategic location, its legal and financial framework, its entrepreneurial culture, and its unique relationship with the United States.

Those advantages cannot be replicated elsewhere in the Caribbean.

As Puerto Rico continues to strengthen its economy and expand its global connections, we believe the island is well positioned to become one of the leading destinations for investment, innovation, and sustainable development throughout the Americas.

The opportunity extends far beyond tax incentives.

It is about participating in the long-term transformation of one of the Caribbean’s most resilient and promising economies.

The Outlook for Puerto Rico’s Housing Market

Puerto Rico Mortgage Bankers Association

The Outlook for Puerto Rico's Housing Market

In this interview with the Mortgage Bankers Association of Puerto Rico (MBA), Adam Greenfader, Chairman of AG&T, shares his perspective on the economic trends that were beginning to reshape Puerto Rico’s real estate market and why the island was entering a new cycle of investment and development.

 

As Puerto Rico emerged from one of the most challenging periods in its modern history, leaders from the island’s housing and financial sectors gathered to discuss the outlook for residential development, mortgage lending, and economic growth.

 

While the conversation originally focused on the twelve-month outlook, many of the themes discussed remain highly relevant today.

A Market Entering a New Cycle

Several powerful forces were converging to support Puerto Rico’s economy.

Historic levels of federal reconstruction funding were beginning to flow into infrastructure, housing, and public works. Private investment was increasing as entrepreneurs, manufacturers, hospitality companies, and technology firms expanded their presence on the island. At the same time, Puerto Rico’s competitive tax incentives and strategic position as a U.S. jurisdiction continued to attract new residents and businesses.

Together, these factors created renewed confidence in both the residential and commercial real estate markets.

Housing as an Economic Multiplier

One of the central themes of the discussion was the importance of housing.

A healthy housing market extends far beyond homeownership.

Residential development supports employment across construction, architecture, engineering, finance, legal services, manufacturing, retail, and countless local businesses. Every new home generates economic activity while helping strengthen communities and improve quality of life.

As Puerto Rico continues to modernize its infrastructure and attract new investment, the demand for quality housing remains one of the island’s most significant long-term opportunities.

The Role of Responsible Mortgage Lending

The Mortgage Bankers Association of Puerto Rico has long played an important role in promoting responsible lending practices, professional education, and sound mortgage underwriting throughout the island.

By bringing together lenders, financial institutions, regulators, and housing professionals, the Association helps strengthen confidence in Puerto Rico’s housing finance system while encouraging sustainable homeownership and responsible access to credit.

Strong financial institutions are essential to supporting long-term residential growth, particularly as new investment continues to enter the market.

Looking Beyond the Recovery

The discussion also emphasized that Puerto Rico’s future cannot depend solely on federal recovery funding.

While reconstruction dollars have accelerated economic activity, lasting prosperity will ultimately be driven by private investment, entrepreneurship, innovation, manufacturing, tourism, and continued confidence in Puerto Rico’s business environment.

Housing will remain one of the cornerstones of that growth.

As more families, professionals, entrepreneurs, and investors choose Puerto Rico, the need for resilient communities, quality residential development, and well-capitalized lending institutions will continue to expand.

AG&T’s Perspective

For more than three decades, AG&T has worked alongside developers, lenders, investors, and public agencies throughout Puerto Rico and the Caribbean, helping structure residential, hospitality, and mixed-use developments that contribute to long-term economic growth.

Our work has reinforced a simple principle:

Healthy housing markets are built on more than favorable interest rates.

They require confidence in the economy, responsible lending, thoughtful planning, resilient communities, and collaboration between the public and private sectors.

Puerto Rico possesses all of the ingredients necessary to support that long-term vision.

We invite you to watch this conversation with the Mortgage Bankers Association of Puerto Rico as we discuss the forces shaping the island’s housing market and why we believe Puerto Rico remains one of the most compelling real estate opportunities under the U.S. flag.

The Puerto Rico Symposium in Miami With Historic Announcement

A Historic Moment: The Puerto Rico Symposium and the End of Bankruptcy

Miami, March 2022 — In front of more than 250 leaders from the public and private sectors, Governor Pedro Pierluisi announced that Puerto Rico had officially exited bankruptcy — one of the most consequential announcements in the island’s modern economic history.

The moment took place at The Puerto Rico Symposium, co-hosted by the Urban Land Institute Southeast Florida/Caribbean — chaired at the time by AG&T’s Adam Greenfader — and The Puerto Rico Builders Association, whose newly appointed president, Vanessa de Mari, was recognized as the first woman to lead the organization in its 70-year history.

The Symposium was dedicated to both milestones.

A Convening Role for AG&T

For AG&T, the Symposium reflected the firm’s long-standing conviction that Caribbean capital markets thrive when regional stakeholders and global investors sit in the same room.

Governor Pierluisi’s keynote highlighted the island’s economic recovery: the end of Puerto Rico’s population exodus, over 900 reconstruction projects underway, and — most notably — the formal end of the debt restructuring that had defined the island’s economy for the previous decade.

Attending government leaders included:

  • Pedro Pierluisi, Governor of Puerto Rico
  • Manuel Laboy, Executive Director, COR3
  • Maretzie Diaz, Deputy Director, PR Housing Department (CDBG-DR)
  • Natalia I. Zequeira, Commissioner of Financial Institutions
  • William Rodríguez Rodríguez, Secretary of Housing, Puerto Rico

The Panels

Panel 1 — Why Puerto Rico: Stories of Success

Moderated by Andrew Carlson, SVP Country Manager at JLL, the opening panel examined the island’s hospitality resurgence — more than 3,000 new or renovated room keys across El Conquistador, Grand Reserve (formerly Coco Beach), Sheraton, AC Hotels, and others.

Panelists included Federico Sanchez (Interlink Group), Dan Kodsi (Royal Palm Companies), Rafael E. Rojo (VRM Companies), and Brad Dean (Discover Puerto Rico), who noted that Puerto Rico had achieved record ADR and occupancy through COVID and was expanding demand across U.S. feeder markets.

Panel 2 — Federal Funding: Myth vs. Reality

Moderated by Ella Woger Nieves of Invest Puerto Rico, this panel unpacked the roughly $80 billion in federal recovery aid.

Manuel Laboy detailed the numbers: FEMA authorized $5 billion for temporary work and $21 billion for 9,000 permanent projects, with 800 currently under construction. Maretzie Diaz outlined the procurement process for private-sector participation, and Pamela Pautenade, former Deputy Secretary of HUD, dispelled misconceptions about relief-fund misuse.

Panel 3 — Fintech and Financial Innovation

Moderated by Nathan Whigham, Founder & President of EN Capital, the panel addressed Puerto Rico’s emergence as one of the world’s leading blockchain and fintech destinations.

Rodrick Miller, CEO of Invest Puerto Rico, framed the strategic shift: from marketing tax incentives to promoting the island’s labor quality, education system, and expertise in life sciences and biotech. Additional insight from Stephen Inglis(Importal) and Yael Tamar (SolidBlock) explored tokenized real estate and tax-credit monetization.

Panel 4 — Growth Industries and Tax Incentives

Moderated by Carla Campos, this closing panel with Jorge Ruiz Montilla (McConnell Valdés), Francisco Luis (Kevane Grant Thornton), and Rogelio “Roy” Carrasquillo (Carrasquillo Law Group) examined how tourism, manufacturing, life sciences, and agro-science tax incentives had translated into measurable job creation.

Banking’s Return

Speakers from Puerto Rico’s financial sector signaled renewed confidence in the island’s growth. Michael McDonnell, EVP at FirstBank — which had just re-opened its construction division — projected positive GDP growth for 2022, ending more than a decade of contraction.

Banesco USA, the only Florida- or Puerto Rico–based bank recipient of the U.S. Treasury’s $8.7 billion Emergency Capital Investment Program, also participated — a signal that federal capital was flowing back through island-connected institutions.

Natalia I. Zequeira, Commissioner of Financial Institutions, emphasized that International Financial Entities (IFEs) can now participate in special opportunity projects — a meaningful shift for structured capital.

A Conversation with Andrew Farkas

One of the day’s defining moments was a high-level conversation between Adam Greenfader and Andrew Farkas, founder of Island Capital Group.

The discussion focused on the role of institutional capital in Caribbean recovery — how sustainability, ESG frameworks, and long-term investment strategies can help return economic migrants to their island homes and rebuild communities beyond hurricane recovery.

That conversation continues to shape how AG&T positions institutional capital in the Caribbean today.

AG&T’s Perspective

The Puerto Rico Symposium underscored AG&T’s core belief: that Caribbean capital markets do not mature in isolation. They mature when regional developers, government leaders, institutional investors, and financial institutions build shared conviction in the same room, at the same table.

Announcements of this scale — a governor declaring the end of a decade-long bankruptcy in front of global institutional investors — do not happen by coincidence. They happen because someone, over years, has been convening the conversation.

For AG&T, that work continues.

Governor Pedro Pierluisi

Speakers Panel

Keynote Lunch Address

 

 

 

 

18 Billion For The Next Great Construction Boom

 

 

San Juan, Puerto Rico.

Last week The Puerto Rico Builders Association held its 70th year conference in San Juan Puerto Rico. The historic event was inaugurated with a conversation on Financing the Next Great Economic Construction Boom.  The panel included Michael McDonald, Executive Vice President and Group Director at Firstbank, Luis Alemañy President and CEO at the Economic Development Bank of Puerto Rico, and Eric Delgado Business Banking Relationship Manager at Acrecent Financial Corporation and Adam Greenfader, Managing Partner at AG&T.

It was clear from the conference panelists, that after more than fifteen years of stagnate growth, Puerto Rico appears ready to build back better. Billions of dollars of FEMA and CDBG-DR funds are being allocated in what will be the largest government funding program in US history.  While much of the Federal funds will be used to subsidize projects, the group was in agreement that there is a huge need for private investment and capital to bridge the financing gapMichael McDonald, Executive Vice President and Group Director at Firstbank, made the historic announcement that the bank is opening up its construction division. Several members from the newly formed team were present in the packed room including Carlos Navarro and Mei Li Tsai Rivera. “There is no better indicator of an economy that is ready to grow that when a bank reopens its construction division”, quoted Alfredo Martínez-Álvarez, Jr., Chairman of the Puerto Rico Builders Association.

Equally promising, Luis Alemañy President and CEO at the Economic Development Bank of Puerto Rico, was asked about the much awaited CDBG-DR funding. Mr. Alemañy explained that the Economic Development Bank of Puerto Rico has already started allocating over $225 Million dollars to small entrepreneurs. The group was especially receptive to the fact that the grants are being disbursed in $50,000 tranches and does not require repayment.

Since 2008, Puerto Rico has gone from twelve financial institutions to less than four. Eric Delgado Business Banking Relationship Manager at Acrecent Financial Corporation, sees a new role for niche lenders filling that gap in Puerto Rico.  He specifically discussed how Acrecent can play a role in funding new construction projects. “We are able to get to funding much faster than traditional banks and also have the capacity for higher loan to coast ratios.  Both Firstbank and Acrecent mentioned that capital is seeking anywhere from 25%-35% of project equity.

“As Puerto Rico gets ready to build thousands of much needed homes, critical infrastructure and other key projects, it will be up to both private and public institutions to step up and provide the much needed capital and leadership”, quoted Adam Greenfader of AG&T.  All of the panelist were in agreement that the island in the next few years is ready for strong growth. They specifically mentioned that in addition to the more than 8 billion dollars of Federal Grants, Puerto Rico has one of the most robust tax incentives and credit programs in the world. The hospitality incentive with a 40% tax credit was specifically highlighted as a very strong component of any capital stack today.

Helping to plan a better future for the island, The Puerto Rico Builders Association will be holding its annual conference on September 20 and 21, 2022.  Speaking and sponsorship opportunities are available and you may contact AG&T at contact@agandt.com.

 

AG&T is a real estate development and consulting company founded in 1998 with headquarters in Miami, Florida. Our  track record spans over 55 real estate development projects in Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, Dominican Republic, and various other Caribbean islands.

 

Helping Puerto Rico since the 1950’s

Puerto Rico 1950's

70 years ago, when the Puerto Rico Builders Association was formed, the United States was on the brink of entering the World War II. December 7, 1941, would be considered a day that would “live in infamy”. Thousands of Puerto Ricans as American citizens fought in the War and would return home as victors to an island on the precipice of great economic growth.  Thanks in large part to Operation Bootstrap, o “Manos a La Obra”, the Puerto Rico Builder’s Association has played a vital role in shaping the island’s long term economic development. The Puerto Rico Builders Association (formerly known as the Homebuilders Association) was formed in a critical period of time when the island was undergoing a massive transformation from an agricultural society into a leading manufacturing hub.

Puerto Rico would see historic growth for more than three decades and the Puerto Rico Builders Association would play a leading role in shaping the island’s zoning regulations, environmental protections, financing, and building codes (often referred to as a Miami’s building code on steroids).  Puerto Rico benefited greatly from these concerted efforts by the Puerto Rico Builder Association with one of the highest homeownership rates in the Western world at 68%. Puerto Rico is also the second largest public housing jurisdiction in the United States second only to New York City.

In 2015, The Puerto Rico Builders Association, under the leadership of then PR Builders president, Ricardo Alvarez Diaz Villalon joined forces with the Urban Land Institute Southeast Florida/Caribbean District Council. ULI founded around the same time as the PR Builders Association, is one of the oldest and largest networks of real estate and land use experts in the world. ULI’s mission is to shape the future of the building industry and create thriving and sustainable communities around the globe. Shortly thereafter, Puerto Rico was devastated with two back-to-back category five hurricanes.

Hurricanes Irma and Maria destroyed most of the island’s electrical infrastructure and informal housing stock at a cost estimated over 100 billion dollars. ULI together with the Puerto Rico Builders Association created a task force to study the effects of the storms and how to build back better. Under then ULI president Greg West, the Puerto Rico Builders Association and ULI convened national panel of experts and created a specific action plan for the municipality of Toa  Baja.

The Puerto Rico Builders Association BoardThe Puerto Rico Builders Association and ULI have since held multiple meetings and conference throughout the years in both Puerto Rico and Miami to explore new areas of synergy and improvements to the island’s build environment. ULI’s current president, Scott McLaren was recently quoted, “we strongly value our long standing partnership with your organization and admire the leaders who go above and beyond, especially when faced with such tremendous obstacles.”

Come celebrate 70 with the Puerto Rico Builders Association Puerto Rico on October 27-29 in San Juan. https://constructorespr.com/convencion-2021/

AG&T is a real estate development and consulting company founded in 1998 with headquarters in Miami, Florida. Our  track record spans over 55 real estate development projects in Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, Dominican Republic, and various other Caribbean islands.

 

 

Puerto Rico’s Hotel Industry Takes Center Stage in Miami

 

 

 

Puerto Rico takes centerstage at the Caribbean Hospitality Investment Summit (CHRIS) held this week at the Hardrock Hotel in Miami.

 

The Puerto Rico Builders Association, one of the sponsors of the CHRIS event, was honored to congratulate Hugh Andrews, CEO, IHE as he received the Lifetime Achievement Award. The award was presented by Vanessa Ledesma Acting CEO and Director at Caribbean Hotel and Tourism Association.  Vanessa, herself a great friend and native of Puerto Rico, discussed with Hugh Andrews his vast accomplishments that include the development of such Icon hotel properties as the Conquistador Hotel, El Convento, Las Casitas, and Vanderbilt Hotel.

 

STR in its annual report, listed Puerto Rico’s year over year recovery from 2019 as one of the Caribbean’s  top destinations. This includes maintaining strong airlift throughout the pandemic, maintaining high ADRs, and an impressive 82% Occupancy rate. The recently delivered Aloft San Juan hotel was named as top CHRIS hospitality development of 2021.  Adam Greenfader, Managing partner of AG&T and Florida Liaison Chair of the Puerto Rican Builders Association,  spoke on the success of the P3 program in Puerto Rico. He mentioned in the Public-Private Collaboration panel that the island will be soliciting a P3 bid for the management of the 9 remaining local and national airports.

 

Kenny Blatt, Principal/Managing Partner of CPG Real Estate, spoke extensively on Puerto Rico’s hospitality industry. He discussed the island’s capacity to greatly expand its hospitality and tourism sectors.  Blatt’s was enthusiastic about the transformation at Dorado Beach, A Ritz-Carlton Reserve and its evolution since 1958.   His key takeaways on Dorado Beach’s success include working with local partners as a critical best practice. Blatt praised the Stubbe family and PRISA group repeatedly as “ the greatest developers any resort can ever have.”

 

The Puerto Rico Builders Association will be celebrating its 70 year anniversary at its upcoming conference on October 27-28, 2021. For more information visit https://constructorespr.com

 

Could this be the year for Puerto Rico?

Adam Greenfader
 
 

Could this be the year for Puerto Rico?

 

It had been almost 12 months since my last visit to Puerto Rico. Thanks to the COVID lockdown expectations were low. The last time I visited, more than 2 years after hurricanes Irma and Maria, the devastation was still overwhelming.  Streets were lined with garbage, electrical lines in disrepair, and thousands of homes had roofs covered in blue tarps. This combined with more than ten years of economic recession made has made Puerto Rico extremely pessimistic. As I landed in Luis Munoz Marin Airport, I was thinking,  “Would the ensuing earthquakes and COVID pandemic ravage the economy even more…”

 

I travelled the entire island from coast to coast –  100 x 35 miles, in a two week period. I drove from San Juan to Aguadilla, Mayaguez, Ponce, Humacao, Fajardo, and Ocean Park.  The roads were in good condition, the street lights working, and many buildings newly painted.  Notwithstanding the COVID crisis, the economy was bustling.  Most palpable was the positive attitude and feeling of the people. I spoke with many colleagues and friends and was told that much of the hurricane insurance had circulated through the economy.  The 8-12 billion in Federal relief from CDBG-DR is expected by early 2021.  Homemade signs seeking construction workers can be seen throughout the island that read, “Se Solicita Carpinteros y Albanilles”.

While the tourists were clearly absent ‘en mass’, a handful of new boutique hotels, especially in San Juan, have been recently delivered between 2019-2020. Much of this new hotel activity is due in part to the Tourism Tax Incentive. The tax incentive provides up to 40% of the total project’s cost back to sponsors…incredibly, some of it can be used for funding as part of the initial capital stack.  While this is not common anywhere in the world, Puerto Rico’s is not a typical Caribbean destination. The total economic activity (GDP) in Puerto Rico is less than 7% for all tourism related activities.  This includes, hotels, trades, conventions, excursions, etc..   This is an astonishing low number for an island that is surrounded by warm water, beautiful beaches, and lush landscapes. Read more about why Puerto Rico is like this at: https://agandt.com/contact-why-puerto-rico-now/

These tax incentives combined with a team of dedicated individuals in the Destination Marketing Organization (DMO) –  Discover Puerto Rico and other Public Private Partnerships (Invest Puerto Rico) is helping to make Puerto Rico a thriving tourism destination. The island currently boats some of the top hotels in the Caribbean with ADR’s over $1,500 per night.  Much of this demand is generated by the Act 20/22 (now Act 60).  For the last five years, hundreds of high net worth US individuals have moved to Puerto Rico to take advantage of zero Federal capital gains.  Act 60 has resulted in over 500 families and hundreds of new business moving to Puerto Rico.  There seems to be no end in sight for these new Americans living in Puerto Rico.  

Dorado Beach

This week Puerto Rico also inaugurated for the first time in over 20 years, the same political party. The PNP or US Statehood party won the election with a mandate for political stability, reduced corruption, and closer ties with the United States. While the island’s economic crisis is far from over, the COVID pandemic has put Puerto Rico back in the spotlight for its manufacturing proficiency. The island of Puerto Rico is one of the world’s leading pharmaceutical destinations – producing more than the top 5 US States combined. As thousands of jobs come back to the USA-Puerto Rico, invariably many will end up where the cost of labor is 15% less expensive, and there is a 60 year culture of robust manufacturing.

 

So is this the year for Puerto Rico?  Strong yes if you are involved with affordable housing, luxury resorts, alternative energy and critical manufacturing.

While we at AG&T do not have the proverbial ‘crystal ball’ on the island’s long term economic growth, things feel like they are on the right track and we will have more clarity with the resolution to the island’s bond crisis, the electrical authority privatization (AEE), and the completion of the responsibilities of The Fiscal Oversight and Managemnt Board for Puerto Rico. 

New Hotel Announced in St. Maarten

Site Plan of Hotel

INDIGO BAY–Two prominent real estate development firms have partnered with Cay Bay Development (CBD) NV, the master developer at Indigo Bay Development, to propose the development of a US $220 million luxury hotel resort and condos in St. Maarten.  AG&T provided advisory services and a group of independent real estate brokers led by Adam Greenfader at Oceanfront International Group at Douglas Elliman coordinated the transaction. 

 

 

The proposed high-end hotel development at Indigo Bay Development,  is expected to feature certain luxury accommodations and five-star amenities, including 94 hotel rooms and suites, and 130 residential homes. Additionally, the proposed hotel development is expected to feature large water ponds and greenery areas in keeping with its eco-centric vision, as well as an extensive public parking area for public beach access to Indigo Bay.

  “The timing for such a development could not have come at a more opportune time, as country St. Maarten is tasked with creating new and innovative strategies to counter the global economic crisis due to the pandemic,”.

In an economy whereby hospitality and tourism are at the centre of its recovery, it is expected that the development of a high-end branded hotel in St. Maarten would provide an enormous boost to this endeavour by enhancing several areas in tourism.

 

Hotel Concept at Indigo Bay

 

According to the release it can enhance St. Maarten’s global attractiveness as a prime tourist destination; increase hotel accommodation by approximately 20 per cent; increase the number of annual visitors to St. Maarten by 32,000 based on hotel occupancy of 65 per cent (double) and an average stay of five nights; and attract high value tourists who may choose St. Maarten as a vacation destination as opposed to accessing surrounding islands through its air and sea ports of entry, it was stated in the release.

The proposed world-class hotel development, once completed, will be managed by an internationally-recognised hotel brand, which will lend itself to greater global recognition, the release said. The projected marketed average daily rate (ADR) for hotel rooms at the proposed new hotel development is expected to be substantially higher than the current average daily rates on St. Maarten.

The CBD and the principals of the proposed hotel development seek to assure that the interest of the citizenry and of the environment are paramount to their endeavor.  Six acres of the overall hotel site of about 18 acres is projected as a green zone, including the retention ponds that were originally constructed at Indigo Bay Development by CBD. 

For more information about Caribbean hotel opportunities contact us 

Critical Manufacturing and Puerto Rico USA

Luis Fortuno and Congresswoman Jennifer Gonzalez

¨.

The panelists :

 

 

 

The ULI Webinar has an incredible array of information crammed into 90 minutes and it gives a great snapshot for the many initiatives being introduced and planned to help the Puerto Rican economy and create more quality jobs. If I had to some it up in three words, Mo is back. Mo of course being momentum.

 Each of the speakers brought a different perspective. Congresswoman Gonzalez Colon noted her primary mission is the reconstruction of the Island and to shephard the many supporting bills recently introduced in the US Congress. Former Governor Luis Fortuno brought an informed Wash DC think tank perspective, Adam Greenfader is one of Puerto Rico´s most passionate advocates, Andy Carlson of JLL (Jones Lang LaSalle) brings experienced commercial  insights from the world´s second largest public brokerage firm, Dr Deusch stated his case for the reasons he brought his Swiss/German manufacturing business to Puerto Rico because of a need for precision and reliability, while Noel Zamot has a finger on the ethical pulse of developing new business in Puerto Rico.

The conversations were upbeat and positive. For instance, Congresswoman Colon made a presentation on MMEDS which was introduced last month to Congress under the bill H.R. 7527. This bill provides tax incentives and tax credits for companies creating manufacturing plants and jobs in economically distressed areas in the US and its territories. The criteria for distressed is even stricter than the recent Opportunity Zone legislation passed in late 2017. When the Congresswoman showed the MMEDS qualifying maps there were smaller areas in very non desirable locations in the US whereas Puerto Rico literally had a much larger proportional area in some desirable locations. And she stated very clearly that MMEDS is one of the very few legislative items that is drawing bi-partisan support from both sides of the aisle.

The entire panel then weighed in on the competitive advantages that Puerto Rico has when competing with the mainland U.S. including much lower labor costs by as much as 60% lower in some cases, an experienced manufacturing labor force going back 100 years, the University of Puerto Rico at Mayaguez which is a top 10% engineering school for the entire U.S. and which is very much geared to provide the engineering and chemistry talent to support Puerto Rico´s manufacturing base. That even today five of the top ten selling drugs internationally are produced in Puerto Rico and 12 of the top 20 pharmaceutical companies have plants in Puerto Rico. Luis Fortuno noted that Puerto Rico had more than $40 billion USD in pharmaceutical exports in 2019 but has the capacity to increase this substantially. The panel noted that some closed down plants are almost in turnkey conditions should manufacturers wish to return or expand capacity. It would not take much. Maybe a recession of the Jones Act, or at least an exemption for an extended period of time, might be the necessary catalyst. There are some interesting new developments on this front as was evidenced last week by Hawaii noting that 85% of their informed populace is all for rescinding the Jones Act as it costs that Island 1.2 billion USD in additional transportation and cost of goods fees.

Progress is being made on seeking some type of exemption under the taxing provisions of GILTI as it adds a 10%+ tax on profits for CFCs (controlled foreign corporations) which unfortunately applies to the US territories since the do not fall under the IRC (Internal Revenue Code). On May 1, 2020, Congresswoman Stacey E. Plasket, representing the US Virgin Islands, filed Bill HR 6648 – the Territorial Economic Recovery Act, that if becomes law, it will exclude our territories from much or all of the GILTI taxation, under certain provisions.

On April 3, 2020, Congresswoman Jennifer González, resident Commissioner for Puerto Rico, introduced Bill HR 6643, the Securing National Supply Chain Act of 2020, to provide various tax credits to Economically Distressed Zones, including a tax credit on the amount of wages paid by an employer to employees in such a zone. The proposal has some overlap with HR 7527 noted above.

President Trump’s Special Representative for Puerto Rico’s Disaster Recovery,  Rear Admiral Peter Brown, lead two delegations to Puerto Rico in August 2020, the last visit being last week. I am told the trip was very successful as a big priority was to visit and understand the many advantages of pharmaceutical manufacturing in Puerto Rico.  AG&T is committed to bringing our network top information and access to our industry’s leaders. 

 

Caribbean Hospitality After COVID: Reimagining Travel for a New Era

Headshot of Brad Dean

Caribbean Hospitality After COVID: Reimagining Travel for a New Era

In the spring of 2020, the global hospitality industry came to an abrupt halt.

Borders closed. Airlines grounded their fleets. Cruise ships sat idle. Hotels that had welcomed guests for generations suddenly stood empty. For a region where tourism represents one of the largest contributors to GDP, employment, and foreign investment, the uncertainty was unlike anything the Caribbean had ever experienced.

While much of the industry focused on managing the immediate crisis, AG&T believed it was equally important to begin asking a different question:

What would Caribbean hospitality look like after COVID?

To help answer that question, AG&T partnered with the Urban Land Institute Caribbean Council to launch a series of thought leadership conversations featuring many of the region’s leading voices in tourism, finance, hospitality, manufacturing, and economic development.

One of the most memorable discussions featured Brad Dean, then CEO of Discover Puerto Rico, Puerto Rico’s Destination Marketing Organization.

Rather than focusing solely on the challenges of the pandemic, the conversation explored how the industry could emerge stronger, more resilient, and better prepared for the future.

Brad Dean offered a perspective that has become increasingly relevant in the years since.

“This downtime gives the travel industry our George Bailey moment. We have all seen that without travel it’s pretty ugly. There is far greater value to travel than most of us ever realized. Travel lifts spirits. It connects people. It leads to progress.”

Those words resonated deeply throughout the Caribbean.

Travel is more than hotel occupancy or airline arrivals. It supports small businesses, restaurants, taxi drivers, artisans, tour operators, construction workers, architects, engineers, farmers, entertainers, and countless entrepreneurs whose livelihoods depend upon a vibrant visitor economy.

The pandemic reminded us that hospitality is not simply an industry—it is an ecosystem.

Creating Dialogue During Uncertainty

Throughout the pandemic, AG&T recognized that one of the greatest needs facing the Caribbean was the exchange of ideas.

As uncertainty grew, we brought together leaders from government, international finance, hospitality, manufacturing, infrastructure, and development to discuss not only recovery, but the long-term future of the region.

These conversations explored topics including:

  • The future of Caribbean hospitality

  • Tourism recovery strategies

  • Public-private partnerships

  • Sustainable destination development

  • Capital markets and investment

  • Resilient infrastructure

  • Manufacturing and supply chains

  • Puerto Rico’s role within the U.S. economy

  • The evolution of luxury hospitality

The objective was never simply to host webinars.

It was to create a forum where industry leaders could share ideas, challenge conventional thinking, and help shape the future of Caribbean development.

From Recovery to Renaissance

Looking back, many of the themes discussed during those early conversations proved remarkably accurate.

The Caribbean has experienced one of the strongest tourism recoveries anywhere in the world. Puerto Rico has reached record visitation levels, international hospitality brands continue expanding throughout the region, luxury resort development has accelerated, and institutional investment has returned to Caribbean hospitality with renewed confidence.

Today’s hospitality industry is fundamentally different from the one that entered 2020.

Developers place greater emphasis on wellness, sustainability, outdoor experiences, resilient design, mixed-use destinations, branded residences, and authentic cultural experiences. Investors have also recognized that the Caribbean’s long-term fundamentals—including strong tourism demand, limited luxury inventory, and growing global interest in experiential travel—remain exceptionally compelling.

AG&T’s Commitment to Caribbean Thought Leadership

For AG&T, these conversations reflected our broader mission.

As a Caribbean real estate development and capital advisory firm, we believe that leadership means more than executing successful projects. It means creating opportunities for dialogue, sharing knowledge across markets, and connecting investors, developers, hospitality brands, government leaders, and financial institutions throughout the Caribbean and the mainland United States.

Whether through our work with the Urban Land Institute, partnerships with Bisnow, industry conferences, investor forums, or conversations with leaders such as Brad Dean, AG&T remains committed to advancing ideas that strengthen Caribbean hospitality and encourage long-term investment across the region.

The pandemic tested every assumption about travel.

It also reminded us why travel matters.

Because hospitality is ultimately about people—and the connections that bring communities, cultures, and economies together.