Congratulations to Hannah Greenfader, one of our past thought leaders on helping achieve the Hazon Seal of Sustainability! Your efforts are greatly appreciated and so needed in this time of great climatic change.
Hannah Greenfader is interned with the Miami- Dade County Office of Resilience researching sea-level rise strategies and creating content for educational programs about sustainability and resilience in Miami.
Today, Hannah is program associate at World Wildlife Fund which was was founded in 1961 and is the largest privately supported international conservation organization in the world. As program associate, I am responsible for supporting “America Is All In” which is the most expansive coalition of leaders ever assembled in support of climate action in the U.S.
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. Our thought leadership program includes mentoring students from the University of Miami Master of Real Estate Development program in finance, sales, and Caribbean development.
Big shout out to many of you who flew in from across the country and Puerto Rico to attend our third Caribbean roundtable in Miami. It was evident from the discussions and presentations, that the Caribbean region continues to offer a wealth of opportunities as well as challenges. Our theme at yesterday’s roundtable was centered around ULI efforts in resiliency and rebuilding.
The panel discussion started with a report by Mr. Tom Roth of Grass River Property on Puerto Rico. Tom travelled the island last year as part of the ULI Advisory Service Panel thanks in part to the the support of The Kresge Foundation and our local District Council. The ULI Advisory Services Panelists spent a week in the Municipality of Toa Baja, Puerto Rico, to provide expert advice on enhancing recovery efforts after the catastrophic and deadly 2017 Hurricane Maria. Tom Roth’s presentation during our roundtable highlighted some of the lessons in dealing with rebuilding, seizing the opportunity to build on higher ground, and the availability of Federal funds for rebuilding homes for Puerto Rican familes.
While at this moment it is still very dangerous to access Abacos, Bahamas, Gene Budler of DCK presented some real time images of his recent relief trip to Abacos. The images of the destruction are truly unbelievable with tons of waste, destroyed homes, and obliterated life infrastructure. As the relief cycle continues, we will be tracking the situation. There is a clear need for stronger, better planned, and more resilient construction. It is our hope to be able to help the Bahamas with some solutions to the massive rebuilding efforts. If you are interested in helping there are multiple organizations. One such group recommended by Gene is MedStar out of Houston, Texas.
As part of our on-going effort to increase our engage with the Caribbean, we are planning a Caribbean study cruise in 2020. The idea of the cruise is to bring together some of the top minds in resiliency for an comprehensive educational summit. In addition to the seminars, we plan on visiting several islands that have been affected by the recent hurricanes. If you are interested in helping organize the study cruise please reach out to either Max or myself. As a reminder, this roundtable is open to non-members as guest to start but is a benefit for ULI members. To join please visit: https://americas.uli.org/membership/join/ If you have any questions, please call 1-800-321-5011 or contact Max Helden.
We are looking to plan a December networking event for this group and then will schedule the next content-oriented roundtable for 2020.
Thank you all again for your participation and to our very kind sponsor Paramount Miami World Center for hosting the event and lunch. You can learn more about our ULI Caribbean Engagement at https://seflorida.uli.org/get-involved/caribbean-engagement/
October 1, 2019, New York City– The Puerto Rico Builders Association takes a big bite of the Big Apple at the 2019 Bisnow National Real Estate Finance Summit. The National Real Estate Finance Summit is one of the most esteemed, high-level, and best attended event in the nation. This year was no exception with over 300 attendees from finance, capital markets, financial advisory, private equity, and real estate.
The Puerto Rico panel included Ing. Emilio Colón Zavala, President of the Puerto Rico Builders Association/ ECZ Group, Eric Berman, Chief Investment Officer at Lifeafar, Jorge Ruiz-Montilla, Capital Member and Chairman of the Real Estate & Finance Practice Group at MCconnell Valdes, Philip Carroll, Director of Finance at Royal Palm Companies and Adam Greenfader, Managing Partner of AG&T.
Ethan Penner, best known for creating the CMBS market, key noted the event with insight on “high conviction investment themes.” The Puerto Rico panel drew much interest at the Finance Summit. “We were impressed to hear from the leaders of the financial markets in New York that they see Puerto Rico as a great opportunity, explained Emilio Colón Zavala. With less than 7% tourism GDP, there is room for 15,000 more hotel keys.’
Philip Carroll of Royal Palm Companies , concurred with the assessment of hospitality demand and explained some of the island’s competitive advantages in Puerto Rico including the ability to leverage Tourism Tax credits with Opportunity Zone incentives. Royal Palm is currently developing a 1,000 key hotel and marina resort on the island.
Pictured Left to Right: Adam Greenfader, Emilio Colon Zavala, Philip Caroll, Marcial Diaz
The panel received multiple questions throughout the presentation. Of particular interest, was the level of detail and financial sophistication about Act 20/22. Jorge Ruiz-Montilla explained some of the benefits of the laws and highlighted the island’s economic and political stability.
When asked, “Why now, why invest in Puerto Rico today”, the consensus of the group was clear…the numbers speak for themselves. “Puerto Rico posted positive economic growth in 2019 and is forecasting a 2.5% GDP for 2020. We clearly hit bottom and with Billions of CDBG-DR money coming to the island in the next few years, the time is now”, quoted Adam Greenfader, who moderated the Panel.
Lifeafar, a real estate investment and hospitality firm, recently expanded their operations from Medellin, Colombia to Puerto Rico. “Puerto Rico is a place you can make a real change. Our investors want to make a good return on investment but also know they are helping to make a difference”, quoted Eric Berman.
We are honored to have been selected to represent Ponce Paradise – a magnificent parcel in Ponce, Puerto Rico within the land of great history, arts, culture, energy, and elegance. Due to the volume of messages our team has received from recent Puerto Rico publications in El Nuevo Día and La Perla del Sur, we humbly extend our gratitude for the passionate letters of support, hope, and mutual environmental awareness. We share in the excitement for Ponce’s growth.
Our dedicated team was recently commissioned by several Puerto Rican families that have been living in Ponce for generations. At AG&T- Puerto Rico, we are a development and boutique brokerage firm and have active on the island for the over 25 years. Together with Douglas Elliman’s Oceanfront International group, a leading National brokerage company, we have been entrusted to manage the sales and marketing for Ponce Paradise. In order to honor, preserve and elevate Ponce’s unique resources, we sought the collaboration of a two internationally recognized architecture and land planning firms, Winstanley Architects & Planners and Land Design.
Together we have created some initial development concepts for a world class medical and tourism destination. Ponce Paradise is undoubtedly a grand and lofty vision that will necessitate the input from community, government, and other key stakeholders alike. We understand this is a long process but one that together can lead to the creation of a once in a lifetime iconic development.
Our guiding principles for the conceptual drawings are:
to preserve and elevate Ponce’s unique resources with sustainable and eco-friendly land planning leaving over 60% of the site intact.
to help maximize Ponce’s already existing 21st century infrastructure, airport, port, and convention center.
to offer robust opportunities of beneficial economic prosperity with services catering to Puerto Rican communities and tourists alike
to attract quality developers and investors with strong visions of sustainability and resilience to natural environmental forces
to build upon a longstanding sense of community pride and appreciation for Ponce’s existing regality
The potential of Ponce Paradise is one that cherishes the past, respects the present, and paves the way for a new future. We are humbled to be part of this vision.
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Nos honra haber sido seleccionados para representar y mercadear para la venta a Ponce Paradise, una magnífica parcela privada en Ponce, una ciudad de gran historia, arte, cultura, energía y elegancia. Debido al volumen de mensajes que nuestro equipo ha recibido por las publicaciones recientes en los periódicos El Nuevo Día y La Perla del Sur, les extendemos nuestro agradecimiento por las apasionadas cartas de apoyo, esperanza y conciencia ambiental mutua.
Compartimos en el entusiasmo por el crecimiento económico de Ponce. Nuestro dedicado equipo fue contratado por varias familias puertorriqueñas que llevan décadas viviendo en la isla y en Ponce. Nosotros en AG&T- Puerto Rico tenemos más de 25 años en Puerto Rico y estamos trabajando en colaboración con un grupo de corredores de los Estados Unidos – OceanFront International Group de Douglas Elliman y los arquitectos Winstanley Architects y Land Design.
Este concepto inicial busca ofrecer una idea preliminar de como podría desarrollarse estos predios en Ponce resaltando la sostenibilidad, su proximidad a la facilidades de transportación y su potencial. Estamos claros que algunos de los conceptos iniciales se descartaran y otros se incorporaran. Siempre hemos estado abiertos a los comentarios que se nos han brindado y el deseo final es que se desarrolle algo que sea de beneficio para Ponce y por esto nos sentimos honrados de ser parte de esta visión.
Nuestros principios para el diseño conceptual generado son:
Honrar, preservar y elevar los recursos únicos de Ponce con una planificación sostenible y ecológica donde se incorpora energía sostenible, cosechas en sitio para el uso directo e indirecto del desarrollo propuesto y dejando intactos mas del 60% de los predios en su totalidad.
Por su localización única próxima al aeropuerto, puerto maritimo, centro de convenciones y playas únicas de Ponce, se desea continuar incentivando y darle uso adicional a estos grandes recursos
Ofrecer oportunidades sólidas de prosperidad económica beneficiosa con servicios que atienden tanto a las comunidades puertorriqueñas como a los turistas.
Atraer a desarrolladores e inversionistas de calidad con visiones sólidas de sostenibilidad y resiliencia a las fuerzas ambientales.
Inculcar un sentido de orgullo y aprecio de comunidad por la rica historia y vida cultural de Ponce.
El potencial de Ponce Paradise es uno que aprecia el pasado, respeta el presente y prepara el camino para un nuevo futuro.
Join AG& T and the Bisnow team on September 24th as we unpack everything you need to know about capital markets, the lending and investment climate, who’s buying and who’s selling, how to land your next deal, and how to weather future unpredictable factors.The National Real Estate Finance Summit has historically been the most esteemed, high-level, and best attended event in the nation. This year, Puerto rico will be highlighted at the event with a selection of the top industry professionals in law, tax, construction, finance and development. Mark those calendars because as always, Bisnow promises plenty of networking opportunities to connect in a fun and fast-paced atmosphere in the Big Apple. For more information. See you there!
Saint Martin is making a comeback. While there is still work to be done, this unflappable island is ready to welcome visitors with new infrastructure, revamped resorts, and unmatched natural beauty. Saint Martin, the half-Dutch, half-French gem of the Leeward Islands, has been a popular vacation destination for Americans since the 1950s. Tragedy struck in September 2017, however, when the Category 5 Hurricane Irma raged over the island for a full eight hours. This was one of the worst-hit islands, and it’s estimated that more than 90 percent of the buildings were damaged; one-third were completely destroyed.
Most of the population is involved with tourism in some way, so residents, the European Union, and the World Bank knew it was crucial to put infrastructure back in place quickly to get evacuees out and supplies in. There have been people on the ground working tirelessly to get this beloved Caribbean destination back, slowly but surely, on its feet.
At this point, despite the largely completed work on infrastructure, only about half of the island’s pre-storm hotel capacity has been restored.
Investor Sentiment For Rebuilding The Caribbean Region Remains Strong
Miami, Florida – The Bisnow Caribbean Hospitality and Tourism Summit held on August 1, 2019 at the Intercontinental Hotel in Miami drew over two hundred investors, developers, hotel operators and other industry professionals.
Puerto Rico was already struggling from decades of fiscal mismanagement and had just declared bankruptcy over its $123B debt when it was hit by two hurricanes in September 2017 — only to run into a botched disaster response. The way some see it, though, rock bottom is behind Puerto Rico, and the island is in the early stages of an upswing. “Puerto Rico is setting an incredible pace for economic recovery,” said Brad Dean, CEO of Discover Puerto Rico, a destination marketing organization that promotes the commonwealth. “Airport arrivals are exceeding pre-Hurricane Maria levels, as are lodging revenues. Given the quick rebound, reinvestment in hotel product and tremendous potential for the island’s tourism industry, this is Puerto Rico’s time. From an investor’s perspective, there’s never been a better time to invest in the island’s tourism industry.”
Buildings and infrastructure are still being repaired and upgraded, and the government has instituted a full slate of tax incentives to lure investors, said AG&T Managing Partner Adam Greenfader, who advises clients from his base in Miami. “You can still acquire assets for 50 cents on the dollar,” he said. “Beachfront land in Puerto Rico today can still be acquired at $30K an acre.” Dean and Greenfader will be panelists at Bisnow’s Caribbean Hospitality & Tourism Summit Aug. 1. Puerto Rico’s economic spiral goes back decades. After World War II, it gave big tax breaks to manufacturers, and to cover for revenue shortfalls, issued more bonds than it could repay. In turn, it implemented austerity measures that did little except drive the population away. Its problems were exacerbated by that fact that it has no voting power in Congress.
Greenfader outlined some key developments toward a turnaround. Puerto Rico’s cash-strapped government has tried to lure investors with laws like Acts 20 and 22, passed in 2012 and designed so that people who move to the island pay little or no federal income tax, even on passive investments. Greenfader said this has attracted 250 to 500 families per year, including big names such as billionaire John Paulson. Other incentives include one that lets people with tourism-related projects get back 40% or 50% of their acquisition costs.
80 Acres in Naguabo, Puerto Rico
Puerto Rico’s massive government debt is currently being sorted out by a federal oversight board. “The major bonds, COFINA and GO, have been renegotiated and the bondholders have been put into payment plans,” Greenfader said. Since the 2017 hurricanes, federal disaster aid — including $1.4B authorized in June — has trickled in. Hotels damaged in the storms were forced to remodel or rebuild and are now offering better products at higher rates. Many are incorporating solar and microgrids to be resilient for the future. The storms raised the profile of Puerto Rico — one study found that prior to them hitting, about half of Americans hadn’t known the commonwealth was part of the U.S. Airport arrivals and tourism revenue have already set records this year. On top of this, Puerto Rico is the beneficiary of community development block grant funding, and 97% of the entire commonwealth — much of it beachfront — has been designated a qualified opportunity zone. “Puerto Rico never had a 1031 exchange, so from a tax perspective, it’s the first time it’s getting capital gains money,” Greenfader said.
Lifeafar Investments Chief Financial Officer Cole Shephard, who will also be a panelist at the Bisnow event, said his Colombia-based company is already taking advantage of Puerto Rico’s investment climate, raising $16M in an opportunity fund to reposition a 61-room hotel. Shephard said Lifeafar, which started by offering real estate services to expats in Medellín, was drawn by the tax incentives and that the opportunity zone designation was a bonus. He is now doing due diligence on additional properties. “I see the sophisticated money chasing metro San Juan,” he said, suggesting that there is a lot of opportunity for small to mid-market projects outside of the city. Not everything in Puerto Rico is rosy.
29 Acres in Isabella, Puerto Rico
As the government has scrambled to generate revenue, sales tax was raised to 11.5%, pensions have been cut, college tuition increased and some 300 public schools closed. Critics have complained that wealthy investors have been protected while ordinary Puerto Ricans suffer. “The locals have had to carry the brunt of these austerity measures,” Greenfader acknowledged. “I’d understand completely, if I see a guy who’s a hedge fund manager with $500M earnings pay hardly any taxes, versus the regular guy paying 35% taxes who’s a salaried worker at Bacardi,” Shepherd said. But Shepherd added that conversations with Puerto Rican officials convinced him they have carefully calculated the tradeoff and found that luring private investment now will help island residents long-term, even though it may take years for the effects to be obvious.
Greenfader suggested that boosting tourism is a winning solution for both investors and residents. Because Puerto Rico since the Kennedy era has been focused on manufacturing, its tourism industry was relatively neglected. The industry now accounts for less than 7% of Puerto Rico’s gross domestic product. In other Caribbean islands, that number is typically between 30% and 80%. Dean’s destination marketing organization, Discover Puerto Rico, was established last year to actively promote tourism. Bisnow’s Aug. 1 Caribbean Hospitality & Tourism Summit will also include Puerto Rico Tourism Co. Executive Director Carla Campos, Hilton VP for Development Juan Corvinos Solans, Puerto Rico Builders Association President Ing. Emilio Colón Zavala and more.
Governor Announces Puerto Rico’s First Hyatt Regency
The Weekly Journal Staff 6-4-19
Gov. Ricardo Rosselló announced that Gran Meliá Hotel was bought by Monarch Alternative Capital in partnership with Royal Palm Companies and Ambridge Hospitality. Together they will rebrand and relaunch the hotel as the Hyatt Regency Grand Reserve. The governor announced that the developers are contemplating a 10-year master plan. This will include six hotels in the Grand Reserve (Coco Beach) peninsula in Río Grande, of which three are expected to be opening by 2022. “Transactions such as these that are happening now validate that our commitment to tourism is a successful one, and there is a positive environment for investment,” Rosselló said at the 41st International Hospitality Industry Investment Conference by New York University (NYU). The governor added, “we have managed to streamline processes to grant tax benefits and permits, which proves that this administration maintains a bureaucratic battle so that the private sector may have better investment opportunities.”
New Project
The Hyatt Regency Grand Reserve Resort will have five new restaurants and will create roughly 200 new jobs. The average rate is expected to fluctuate by $300 per night. During his presentation, Rosselló revealed blueprints and mockups for the property. He stressed that Puerto Rico’s “fertile and positive” environment for investments in the hotel industry. The Hyatt Regency Coco Beach Resort is part of a $120 million deal made possible through an agreement with the Puerto Rico Tourism Co. (PRTC), which granted tax credits conforming to the P.R. Tourism Development Act (Act No. 74-2010). Of the total investment, $100 million correspond to development costs to elevate the property to Hyatt’s luxury standards. The PRTC has been working on this business deal along investors for several months. PRTC Executive Director Carla Campos assures that Tourism is focused on increasing the island’s hotel inventory in the short term, emphasizing Puerto Rico’s “competitive and incomparable” investment advantages.
After damages caused by Hurricane Maria in 2017, Monarch Alternative Capital, which already had interests in the peninsula, seized the opportunity to acquire the Gran Meliá Resort, with 486 rooms, 135 bedroom units, and 14 more terrain acres. In order to proceed with the transaction, Monarch made a conjoint agreement with Royal Palm Companies and Ambridge Hospitality. According to Campos, this project makes part of a “long-term master plan” that seeks to add 2,500 new rooms to the island’s hotel inventory and 1,500 new jobs. “This will result in a total investment of roughly $1.5 billion, when the six hotels are finished,” she added.Both the governor and the PRTC executive director stressed Puerto Rico’s strategic position as a connector between the United States and Latin America and the island’s structural reforms, which they claim positions Puerto Rico as the most competitive U.S. jurisdiction for hotel investment.
The officials also highlighted the investment tools that provide a combination of tax benefits at state level, in addition to the competitive advantage of being almost entirely eligible for certain benefits and exemptions under the Opportunity Zones incentive as included in the U.S. Tax Cuts and Jobs Act of 2017.
Adam Greenfader, managing principal, AG&T, said hurricanes Maria and Irma destroyed or damaged a large share of Puerto Rico’s housing and commercial structures, spurred insurance insolvency and changed the market for coverage. Greenfader spoke with AM BestTV at the RMS Exceedance 2019 conference, held in Miami.
