Asset ClassReal Estate
Value of Investment$26,000,000
Posada Culebra LLC is entering into contract to purchase the land, and the existing infrastructure with the permits. The land is surveyed with paved roads, water, sewage, underground power-lines, and a cell tower. This in-place infrastructure and hotel permits provides intrinsic value and significantly de-risks the project which is already in an advanced stage of development with a short timeline to completion. The development, once initiated, will be entitled to Puerto Rico Tourism Company tax credits of 30% of the total value of the project, including the land, for a total estimated outlay of $26 million. These tax credits are paid over three years and can be sold for cash.
The Culebra property is approximately 38 acres with eastern Caribbean views. The Puerto Rico Planning Board authorized: 1) a 30 room hotel on a 16,000 square meters plot, 2) 41 lots for residential-tourist villas, with two villas already built and, 3) 24 residential units for low income Culebra residents. The survey of lots shows the roads which are already in place and servising the two existing villas.
As can be seen from the areal photograph, the property is on a hill with horseshoe shaped valley with easterly views to the Caribbean. The marina is planned to be at the head of bay a short walk from the property entrance.
The hotel and villas will be eligible for 30% tax credits after the first year for the full value of the project including the land. The 24 units social housing units are considered part of the tourism project costs, but are also eligible for a variety of additional tax credits. The secondary market for tax credits in Puerto Rico is robust and Posada Culebra LLC will monetize the tax credits and list them on the Inportal Kanga Exchange as financial instruments to secure mezzanine financing.
This architectural rendering of the hotel has detailed schematic drawings which can be found in the deal room and will be modified to include a co-working space with meeting rooms and a patio restaurant with spectacular views and a constant sea breeze.
Together these benefits make Posada Culebra an investment worthy of a closer look. Apply for Membership for access to the due diligence room to review original documents.
The low Sol Nest construction costs permit a budget for high end interior and exterior finishing for the villas which will conform to the hotel's styling. The 24 unit social housing units which will be comprised of six four-plex buildings, will have a three interior design finishings to differentiate the units
Sol Nest has been working with our architectural landscaper to transform the native scrub brush into a sustainable organic ecosystem with orchards of fruit bearing papaya, coconut and mango trees irrigated by a solar pump drawing water from the natural pond. Roadways will be lined with purple turmeric and red flowering ginger plants.
Guests staying at the villas or dining at the hotel's restaurant will appreciate the availability of fresh leafy greens, herbs, strawberries, and assorted fresh fruits available all year round. The Greenery Container 48 foot container Farm can grow an abundance of produce with the surplus to be sold to local Culebra residents and grocery stores.
This container farm will certainly be a draw for sailors to come into the marina for fresh provisions after weeks at sea.
It is anticipated that this farm operation can generate $20,000 per month in sales as is shown the pro forma financials presented in the due diligence room.
Key to the Posada Culebra life-style concept is the affiliation to the Caribbean. The plan includes both a high speed power boat to ferry guests directly to Puerto Rico and to also be used for recreational excursions. As well the plan includes the purchase of a 56 foot catamaran for diving trips to the local coral reefs, deep sea fishing or just relaxing beachcombing. Access to the sea represents a key value proposition to attract guests.
The marina and proximity to the hotel property will also be a draw for sailors cruising the Virgin Islands. Culebra is only 12 miles from St. John and will be a destination to come on to dry land perhaps to conduct business, get supplies from the farm and relax in the enclave of Posada Culebra.