Asset ClassPrivate Equity
Value of Investment$25,000,000 minimum $5,000 equivalent in coin
Viejo San Juan Comunidad RE Fund is founded by resident Puerto Ricans on the belief that Old San Juan offers a unique opportunity for investment, with a lifestyle offering that will continue to attract new residents as arguably the most livable urban neighborhood in America. VSJ’s channeling of investments into the Old Town will buttress the culture and lifestyle of this historical Caribbean setting. The founders of the Fund view the investments from a social impact perspective, while mindful of the IRR.
The Fund has targeted, and is in contract with properties for both redevelopment and current rental income. In particular, the Fund intends to redevelop a landmark building for the crypto/blockchain community.
Listed on the National Register of Historic Places as the "Zona Histórica de San Juan" there are strict remodeling codes to prevent new construction from affecting the common colonial Spanish architectural themes of the old city, where in return for maintaining the architectural integrity of the buildings, owners pay no property taxes.
Being one of the busiest cruise ship ports in the Caribbean on the harbor of Old San Juan provides a regular flow of customers to support the restaurants, boutique hotels and high end retailers able to pay rising rents.
There is still an abundant supply of buildings to rejuvenate, but with cap rates well above 10% they won't last long.
VSJ is entering into contract with Artesano Rum to purchase and build out for leaseback a 17,000 sq foot historical warehouse in Paseo de Puerta Tierra with ocean views, minutes from the cruise ship terminal which brings as many as 10,000 passengers a day. This project has a built in return on the construction and renovation which includes a distillery, a warehouse for aging the casks, a rum bar and restaurant, and a souvenir shop. The target date for completion is May 2019. Details are available in the deal room by Applying for Membership.
The Gonzalez Padin Building has a commanding presence over Old San Juan on the south corner of the Plaza de Armas. It has been touted as a global headquarters for virtual currency banks and blockchain enterprises. Until last year the government was the biggest tenant, and after the downsizing, the 88,000 square foot building is now half vacant. Surprisingly with just Marshalls as an anchor tenant and the roof top cell towers, based on the $12 million asking price, the Gonzalas Padin Building has a 9pct yield.
The VSJ Fund has completed extensive due diligence on the building and is aware of other parties making offers. VSJ Fund will be in a strong position to purchase this property once discussions with a major new tenant capable of leasing out 30,000 sq ft of vacant space are concluded.
The VSJ Fund intends to move its headquarters to the 7th floor where the view form the balcony is the highest point in Old San Juan.
The due diligence is available in the InPortal deal room by Applying for Membership
Viejo San Juan has a great variety of residential properties. This classic townhouse on Calle de San Justo has three revenue producing apartments on the first floor with the upper floors and roof top as a luxurious spacious residence. The exterior structure is has been restored to its original state giving it an exemption from property taxes. The interior is totally modern with 14-foot ceilings, and a lush interior courtyard. The asking price for this home is $900,000.
On the tranquil western end of Calle de Sol away from the night life of clubs on San Sebastian, overlooking the entrance to the harbor are a cluster of townhouse mansions dating back to the 18th century. These homes have exquisite internal plazas with mosaic fountains, and often with secret passage ways to the street. Most have cisterns under the foundations where rain water is collected and are currently functional as a backup water supply. What really sets this style of VSJ architecture apart are the terraced roof tops with panoramic views to watch the ships come and go through the harbor.
Apply for Membership to access the VSJ Deal Room.