Overview
Total Portfolio Activity: 15% Total Assets Under Management: 300,000,000
Targeted Investor IRR: 15 Targeted Equity Multiple: 2
Targeted Average Cash Yield: 10 Targeted Investment Period: 5
Property Type: Resort Location|MSA: Puerto Rico
Investment Profile: N/A Targeted Project IRR: 15
Sponsor Co-Invest ($): 1,000,000,000 Sponsor Co-Invest (%): 10
Offers Due: 2021/08/26 Funds Due: 2021/08/26
Targeted Distribution Start Date: 2021/08/26 Preferred Return Accrual Date: N/A
Minimum Investment: 250,000 SD-IRA Investments? No
Initial Posting Date: 2021-08-26
Table Of Contents

Details on investment structure, promote structure, fees, and targeted cash flow tables

Details on Sponsor’s strategy and deal execution, entrance and exit cap rates, and market leasing assumptions

Physical details of the property, aåmenities, rent roll, and site plans

Puerto Rico
The Investment
Distribution Strategy
Capital Calls
Sources & Uses
Financials
Fees
Project Vs Investor Returns
The Business Plan

The subject property was acquired by the current owner on July 17, 2019 from The Blackstone Group for approximately $32,000,000 (a mere fraction of Blackstone’s original acquisition price in excess of $375 Million). Blackstone was near the end of its investment term and was preparing this asset for liquidation, but unfortunately Hurricane Maria caused extensive damage when it struck Puerto Rico in September 2017. The renovation of the property (post hurricane) would have prolong the conclusion of the Blackstone’s fund, thus the property was sold to RBH is “As-Is” condition.

It is worth noting that Blackstone collected and retained all insurance proceeds (well in excess of $100 million), and RBH is responsible to fund the renovation costs. The total renovation budget was reported to be $120,897,000. In conclusion, it appears that Blackstone collected at least $140 million related to proceeds from the sale. No further details were provided for this transaction.

Acquisition & Reversion
Capital Improvements
Property Management
The Property

ROOMS

  • Hotel Rooms
  • Residences Rental Prog.
  • Proj. @ 65% Occupanc & $200 ADR on average

FOOD & BEVERAGE

  • Culturally and Traditionally inspired Puerto Rican Restaurants by the top chefs/cooks on the island.
  • High-End Michelin Rated • Casual Street foods
  • Seafood vs. Meats vs. Veg. • Restaurants that become Nightclubs

PROGRAMING & ENTERTAINMENT

  • Theater/Performance Center – Gala Systems
  • 2 level- Family Entertainment Center
  • Water Park (Increase Cabanas) • Marina (Inc. Brand awareness)

RENTALS, OTHER INCOME, MEETINGS & CONFERENCE CENTER -RETAIL CONCESSIONS

  • Resort Fees
  • Commissions
  • Amphitheater daytime use the gala Systems which allows for a flexible theater experience that converts to a flat area. For Corporate events
  • Compartmentalize Palomino Island Wedding, Beach Goers, Night-Time use, Special Events once a month.
  • Boat Dinner Cruises

GOLF AND TENNIS CLUB

  • Golf “New Course”
  • Tennis
  • Club Membership with access to hotel amenities
  • State of the Art Fitness Center • Anti-Aging doctors
  • Nutrition Consultation
  • Golf and Tennis Academy
Physical Details
Amenities
Unit Mix
Site Plan
The Location
Demographics
Asset Class Market
Rent Comparables
Sales Comparables
The Sponsor
Leadership Team
Track Record
In the News
Prior Offering (s)
Disclaimer and Footnotes
Description

The El Conquistador Resort is an existing 750-room, full- service lodging facility. The subject property features extensive amenities and services including multiple restaurants and bars, several outdoor pools, spa and fitness center, 18-hole golf course, tennis courts, game room, retail stores, water park, access to a private island with a beach and water sports equipment rentals, and approximately 68,000 square feet of meeting space. The subject property is located atop a 300-foot cliff, along SR 987 just north of the main business district of Fajardo; generally bound on the north by Las Croabas and on the south by Playa Sardinera.

It should be noted that the subject suffered extensive damage from Hurricane Maria in September 20, 2017 and, following the storm, the property has been operating at a reduced capacity. During 2018 and 2019, only 230 units in the Las Brisas building remained operational and the food and beverage offerings following the hurricane were limited to buffet service in the main building, the Bella Vista outdoor Café and Splash Bar by the poolside. All other outlets have been shut down since the hurricane. Some of the recreational amenities have been operating on a limited basis (golf, tennis, pools). Extensive renovations are underway with completion scheduled by late 2020.



Location

Puerto Rico, Alhambra, California


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