Renewed efforts and enthusiasm to promote Puerto Rico’s business and tourism industries

The Puerto Rico Builders Association continues with renewed effort and enthusiasm to promote Puerto Rico’s business and tourism industries on the island as well as the mainland U.S..  In 2017, the Puerto Rico Builders Association and Governor Ricardo Rosselló Nevares hosted over two hundred investors, developers, and institutional capital groups at the Caribbean and Latin America Investment Summit. The event was a resounding success and attracted many large investment groups to Puerto Rico  – as well as garnered much National and International media attention.

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Building on last year’s success, The Puerto Rico Builders Association will be hosting with Bisnow, the largest platform for CRE news, events and education in the world, its first Caribbean Hospitality Investment Summit in Miami. Join us on August 23, 2018, at the summit, where we will gather industry leaders and key government representatives to discuss everything from hotel and resort development, to the future of tourism, resiliency, and recovery strategies. Some of the speakers include:

Ing. Emilio Colón Zavala
President 
Puerto Rico Builders Association/ ECZ Group, Richard Millard
CEO
Trust Hospitality, Rogerio Basso
Head of Tourism
Inter-American Development Bank, Fernando Fernandez Vice President Of Development, Caribbean Apple Leisure Group,  Jonathan Kracer
Founder
Sion Capital, LLC., Ted Middleton
Senior Vice President – Development – Hilton Worldwide, Christian Glauser-Benz
Vice President, Development & Acquisitions
Dream Hotel Group, Harry Cook
Capital Member, Real Estate & Finance Practice Group
McConnell Valdés, Vanessa Mange
Director, Global Development Kimpton Hotels, Jorge Ruiz-Montilla
Capital Member and Chairman, Real Estate & Finance Practice Group
McConnell Valdés,

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For more information about the event, please contact Adam Greenfader at 305.363.8833 or to grab a ticket, visit Bisnow’s event page. https://www.bisnow.com/south-florida/events/hotel/Caribbean-Hospitality-Investment-Summit-980

 

 

 

The Builders Association of Puerto Rico in Miami

Seminar

The Builders Association of Puerto Rico was proud to participate in back to back investment summits in Miami: Hotel Opportunities Latin America (HOLA) and Caribbean Hotel Resort Investment Summit (CHRIS). The conferences were held at the JW Marriott Marquis on May 14-18, 2018. The back-to-back nature of the two events was a great way for the Builders Association of Puerto Rico to be present not only to investors interested in the Caribbean, but also in the Latin American region.

Two of our members from the Builders Association of Puerto Rico participated as speakers at the events, Mr. Federico Sanchez on the Caribbean Capital Roundtable and Adam Greenfader Public/Private Track Financing Opportunities working with the Public Sector. Our association was also present in full force with our Vice President, Mr. Alfie Martinez.   

Carla Campos, The Director of the Tourism of the Government of Puerto Rico, spoke of the new tourism opportunities and highlighted several new hospitality developments currently under construction.

Some key take-aways are that supply, demand, REVPAR, ADR continue to grow for the Caribbean region.   Insurance policy corrections will be looked at more closely than ever and that banks are approaching the peak, and are “cautiously optimistic” about the future. According to the KPMG’s report on Caribbean, Puerto Rico has the third most inventory under construction with 549 new hotel keys. 

Although the 2017 Hurricane season brought great devastation Puerto Rico and the Caribbean region as a whole, HOLA and CHRIS revealed last week that we are all back and ready for business.  

 

Contact AG&T to learn more about Puerto Rico. 

2018 Caribbean Hospitality Financing Survey

 

KPMG Just released its 14th annual Caribbean Hospitality Financing Survey highlighting financing trends in the region’s hospitality and tourism industry and the outlook for the future of the industry.

The major event since our last survey was the catastrophic 2017 hurricane season which had a devastating impact on many countries in the region. It was therefore, with some trepidation that we approached financiers of tourism projects in the region. We were pleasantly surprised, and relieved, to find remarkably high levels of confidence in Caribbean tourism amongst financiers. Confidence levels for banks increased for an astonishing ninth year in a row and the confidence levels of non-banks (private equity, family offices etc.) were even higher. However, lessons have been learned. Financiers will be scrutinizing insurance coverage and quality of construction more intensely than they did prior to Irma and Maria.

Some of the key findings of the survey include:

  • Confidence levels of banks and non-banks have increased despite the impact of hurricanes;
  • Financiers’ appetite for issuing senior debt not just for expansions and renovations but acquisitions;
  • The quality of construction will receive more attention and adherence to codes of construction will be non-negotiable;
  • An increasing number of financiers are willing to consider new builds;
  • Half of the banks and 57% of non-banks think the economy is approaching the peak;
  • The issue of insurance, the adequacy of coverage and the approach taken by insurers received a lot of attention; and
  • The critical issues impacting financing activity in the region.

 

Caribbean Hotel & Resort Investment Summit

PUBLIC/PRIVATE TRACK: FINANCING OPPORTUNITIES WORKING WITH THE PUBLIC SECTOR Moderator: Robert MacLellan, Managing Director, MacLellan & Associates Panelists: Roland “Andy” Burrows, Chief Investment Officer, Bermuda Tourism Authority Adam Greenfader, Managing Principal, AG & T Warren Newfield, Principal, Kimpton Kawana Bay John Perrottet, Senior Tourism Specialist, World Bank Group

While HOLA was about ties and dark suits CHRIS was all open shirts and  Bermuda shorts.

  • Supply demand, and REVPAR and ADR continue to grow for the Caribbean region. 
  • Insurance policy corrections will be looked at more closely than ever.
  • Banks are approaching the peak, and are “cautiously optimistic” about the future.
  • Dominican Republic continues to take the lead in new hotel construction according to the KPMG’s report on Caribbean.
  • Puerto Rico has the third most inventory under construction with 549 new hotel keys. 
  • 25% of St. Martin/Marteen hotels are on line and Dutch government very proactive for new development. 
  • Enthusiasm is high for Qualified Opportunity Zones

Big picture takeaway is that the Hurricanes of 2017 affected not just those islands that were hit but all islands. Caribbean needs to think promote as a whole region.  

HOLA Conference – Day 1

5|15|2018 – JW Marriott, Downtown, Miami.  

AG&T and the Builders Association of Puerto Rico invited to participate at the Hotel Opportunities Latin America (HOLA) Conference in Miami. 

Some take aways from today’s meeting in Miami. 

  • The LATAM hotel industry is seeing a lot of over supply with a few exceptions in the emerging countries. 
  • Big hospitality growth in Colombia(14%), Costa Rica(15%)  and Peru (18%) . 
  • Mexico and Brazil still lead in overall Latin American hotel supply pipeline. 
  • As for new development, risk management is the word of the day. As is expected, all inclusive resorts seem less concerned about the new disruptors like Airbnb, but all are keeping their eyes on elections in several key countries. 
  • Argentina and Brazilian markets continues to draw hotel groups but there is uncertainty about exit timetable. 
  • Investors in several LATAM countries move beyond capitalization rates and focus primarily on desired yields.

 

Join us at the Hola:  http://holaconference.com

 

 

 

HUD to grant $18 Billion for Puerto Rico’s recovery and reconstruction

HUD

 

 

 

Last April 9th U.S. Department of Housing and Urban Development’s Deputy Secretary, Pamela Hughes Patenaude, along with Congresswoman and Resident Commissioner, Jenniffer González- Colón, met with the Puerto Rico Builder’s Association’s (PRBA) leadership along with the Mortgage Bankers Association (MBA), Puerto Rico Chapter, the Puerto Rico Bankers Association, and Puerto Rico Real Estate Landlord Association.

During the meeting the group spoke about the status of Puerto Rico’s recovery and reconstruction process after hurricanes Irma and María made landfall last September. Among other topics, Hughes Patenaude made a significant announcement of $18.4 billion to be granted by HUD to support long-term disaster recovery for Puerto Rico. It is hoped that this grant will help rebuild communities impacted by past disasters and protect them from major disasters in the future.

The funds are to be provided through the Community Development Block Grant Disaster Recovery Program (CDBG-DR), which grants support to a variety of disaster recovery activities including housing redevelopment and rebuilding, business assistance, economic revitalization, and infrastructure repair.

Read Full Article:

Hud 18 Billion

Micro Apartments: Redefining Functionality

As the idea of developing micro units becomes more prevalent, we must rethink how to functionally furnish them within a limited amount of space. The size of a micro units is typically less than 350 square feet and just like any other unit, the kitchen and bathroom are permanently fixed. Due to the smaller size you can’t fit a standard, bed, couch, dining table set or even store your other belongs efficiently. So, if developers want to sell or lease micro units they must provide potential consumers with hassle free furniture and storage solutions.

Resource Furniture (https://www.resourcefurniture.com), a distribution company specializing in functional multipurpose furniture for small spaces, is committed to raising the bar when it comes to furniture functionality, quality and sustainability. Their furniture ranges from murphy style beds that transform into desk and seating area that can be used for everyday task.

Advances in technology are also assisting with the way we can furnish micro units. Powered by modular robotics, Ori (https://www.orisystems.com) is a modular system that includes a full or queen-sized bed, closet space, a desk and much more, developed by a start up from MIT’s Media Lab and designer Yves Behar. With the simple touch or voice command, this system seamlessly allows you to adapt the space in your unit for any activity. The Ori system can be installed in both existing and new buildings and can be assembled on site and can be plugged into a conventional electrical outlet.

Besides the attractiveness of space conservation, incorporating hassle free modular or transforming furniture will allow developers to charge consumers a higher premium for furnishing the unit. Both parties benefit and the consumer will be satisfied knowing that they can live comfortably and efficiently in a smaller unit…and might never have to “make the bed.”

Magnetic Elevators and the New Air Rights Boom

 

Before the invention of the modern-day elevator in 1853, we were limited on how high we could build without walking the stairs being extremely uncomfortable.

The elevator revolutionized how we built, we build higher and higher, the sky’s the limit! Elevators are either on a vertical lift or pulley system but, now we move vertically and horizontally within the same elevator. How?

I thought that was only possible in movies such as Charlie & the Chocolate Factory.

Well the future of elevators is Magnets! German company ThyssenKrupp (https://www.thyssenkrupp.com/en/)  has announced that the era of elevators being pulled up by cables is over and the era of magnetically operated elevators are the new thing. The future of the way people move inside buildings will be changed by The MULTI revolution in elevator construction, providing completely new perspectives and a whole new world of opportunities for developers, architects, planners, and operators.

ThyssenKrupp proposes employing linear motors in which several elevators can be used in one single shaft simultaneously both vertically and horizontally. This innovation creates shorter wait times, increased capacity, reduced weight and mass, and 25 percent more usable floor space.

With taller skyscrapers being developed this innovation will be critical and have a direct effect on an owner air rights. As we continue to build higher with the introduction of MULTI and with restrictive zoning codes with a cap on height, smaller developments air rights will become increasingly more valuable. Combined with new technology and the ability to sell more air rights, we now have more incentives to create more density in urban areas.

 

 

 

 

Housing; The New Subscription Model

Housing New Subscription

 

Housing; The New Subscription Model

Subscriptions have been around for decades – from magazines, to newspapers, streaming television and even food delivery. But why stop there? Now housing has joined the long list of products that consumers can subscribe to.

Companies such as Common (www.common.com) and Roam (www.roam.co) have gotten it figured out. These companies have created an innovate housing model where an individual pays a weekly or monthly fee, just as they would pay rent, and they are able to sign short leases at least 3 months, and at the end of the lease, move to another location within the network. 

Guest have their own private bedroom and bathroom in a unit and might share the kitchen and living room with other guests. Along with the weekly or monthly subscription, utilities, cable, laundry, and weekly cleaning of your room are also included. These fully furnished co-living units also aim to promote shared interactions with a diverse community by building out plenty of gathering spaces for events, meetings and classes.

Subscription housing is an affordable and flexible option for those people that are on the go or for someone that may need to move to a city quickly and/or needs more time to find a home. Subscription Housing can be a great aid to a stress-free move.

In some high cost cities like New York or San Francisco, you will save more money living in a co-living development versus renting an unfurnished studio apartment.

Ideas: Co-living makes extremely expensive cities affordable to live in. In a city like San Francisco monthly rental costs can range from $2800 for a studio to $3500 for a one-bedroom apartment. Compare this to only $1500-2500 for a room within a co-living space or $1000-1500 within a shared house.

 

 

team2 internet

Thought Leadership: Meet Our Team

 

 

Climate change, global warming, and other environmental phenomenon is forcing us to adapt the way we build.  

Our thought leadership series was created to explore how new innovations, technologies, and construction methods are challenging our paradigms. Our hope is that these forward looking thoughts help stimulate new opportunities. From our team to yours:

Creative Director – Steven Kelly has a Bachelor in Fine Art in Communication Design from Pratt Institute and a Master Degree in Computer Applications. Steven Kelly multi-faceted approach to creative development places him amongst top creative leaders in his field.  stevenbryankelly@gmail.com

Master Writer – Brandon Orlando Fennell is a native of Lithonia, Georgia. He is graduating in May 2018 with a Master of Urban Design and Master of Real Estate Development from the University of Miami. Brandon has a passion for giving back and plans to shape the world for more African American architects, urban designers, and developers. bof5@miami.edu

Numbers Cruncher – Ariel Newfield has a comprehensive education in real estate from the University of Miami, with a Masters of Real Estate Development and Urbanism and Construction Management.  Ariel’s global perspective inspires him to make complex financial real estate transactions clear to all parties involved. aynewfield@gmail.com

The Orchestrater –For Adam Greenfader it’s all about the synergy of great teams, thinking outside of the box and producing innovative ideas and real estate products.