Please contact me ASAP if you or a investor of yours can be interested in a $6.0MM Development/Construction Financing package of not less than 3 years in duration, to be taken down in multiple tranches as improvements progress. Will consider a JV/Equity Partner, or a full sale of the project (currently priced at $9.5MM/Negotiable). Current, conservative proforma reflects an $17.9MM Pre-Tax Cash Flow. Have $6.4MM Cash Invested in the project to date, complete with operational Sales Office on the Coast Highway, a full billboard advertising campaign, an excellent local broker liaison ship, and strong brand notoriety in the region. 25 UNITS SOLD.!. GENERAL INFORMATION:
The Investment: TESORO, a 12-Acre, 142-Unit, luxury, beach front condominium resort community located in the Central Pacific Coast of Costa Rica is in search of Development Loan Capital, Equity Participation, a Joint Venture Partner, or Project Sale. The Development is projected to generate $17.8MM in pre-tax cash flow over a 4-year sell-out/build-out period. A full Acquisition Price for the project of $10.0MM has been established. Percentage of ownership through Equity or Joint Venture participation will be determined based on amount of investment, initially not to be less than $2.0MM which will acquire a 20% ownership position. For every additional $500,000 invested, an incremental 5.0% will be acquired. JV control of property would be accomplished at $5.0MM total invested. In the alternative to Equity or JV participation, or acquisition of the project outright, we are seeking $5.0MM in Development Loan Capital, this to complete the construction of the first phase of residential buildings, and to accelerate the resort amenity package which will, in turn, improve sales absorption and price appreciation of the project.
The Return: Built into the project operating proforma is a 17.0% Preferred Interest to paid on Development Loan Capital (5% at Close, 12.0% paid monthly on the outstanding amount drawn). This represents only one possible scenario. However, we understand that every lender has their own set of financial metrics that they need to achieve and this is just a starting point. All offers and proposed terms will be considered. We anticipate a 25% - 30% ROI on Equity/JV participation.
Summary: TESORO – The Treasure at Playa Palo Seco – is a 142 Unit Beach Front Condominium Development located on 12 acres in the Central Pacific Coast {Puntarenas Region} of Costa Rica. It is a luxury, resort, lifestyle community uniquely situated on a 5 mile long, palm-studded, pristine beach peninsula, also known as Isla Palo Seco. Palo Seco is strategically positioned between two of the hottest real estate markets in Costa Rica; Jaco Beach -- 30 miles to the north, and Quepos/Manuel Antonio -- 15 miles to the south. With one entry in and out, and a Plan Regulador (Master Plan) already set restricting high-density development, Playa Palo Seco is destined to become the exclusive residential address of the Central Pacific Coast. Website: www.TesoroCostaRica.com.
The community is a 24/7 guarded and gated private resort retreat, just close enough to all the action, but reclusive within its own luxury confines. Inside the community, serving only its 142 resident properties, is a 5,000 square foot Social Clubhouse & Fitness Center, which includes a state-of-the art weight and cardio facility on the upper level, and billiards and game tables, wet bar, big screen TV and comfortable lounging sofas and chairs on the lower level.
The Clubhouse is situated central to the 8,000 square foot {surface area} luxury resort pool and spa. This expansive facility is the primary amenity {beyond the community’s beach front location} which is dominated by an 18’ high, signature aqueduct system that bifurcates the community and sets the powerful architectural character throughout. It is further articulated with swim-through caves, rock water features, tanning shelves, and curvilinear form, all surrounded by luxury gardens and serviced by a Poolside Café, Bar & Grille. www.tesorocostarica.com/ws_project/renderings.html
Operational Highlights:
· Annual Absorption -- 50 Sales Per Year (when amenities are in)
· 25 properties already sold (of 54 properties released for sales)
· Gross Revenues - $64.6MM
· Pre-tax Cash Flow - $17.8MM
· Entitlements -- Completed and Fully Approved
· Project is under construction
· Models projected to open Sept 2009
· Existing Marketing Program fully developed and implemented
Location: As mentioned above, TESORO – The Treasure at Playa Palo Seco is supremely located equidistant from two of the hottest real estate markets in the Central Pacific Coast of Costa Rica; Jaco Beach just 30 miles to the north, and Quepos/Manuel Antonio just 15 miles to the south. The Central Pacific Coast is the closest beach region to the capital of Costa Rica, San Jose, and only 60 miles from the Juan Santamaria International Airport. With the new highway under construction the current one hour and 45 minute drive from the airport to the beach will be reduced to under one hour, this only a couple of years away. www.tesorocostarica.com/ws_location/.
The Central Pacific Coast is also a vibrant microcosm of the larger, incredibly diverse eco system. The list of things to do in this pristine, natural rain forest is just too long to list in total…but to provide a flavor…just minutes from the project is golfing, surfing, hiking, biking, white-water rafting, exotic animal watching (birds, monkeys, whales, reptiles, etc.), hang-gliding, parasailing, world-class billfishing, of course shopping, dining, moto-scootering, 4-wheeling, windsurfing, jet-skiing, volcano watching, canopy tours, and the list goes on and on and on!!!
Lots/Units: The Site Plan provides for 4 unique “orientations” for all product; Beach Front, Water Garden, Garden, and Resort Pool. Each of the 142 Condos in the project are located on one of these orientations, this to provide a diverse offering to the market place. Each orientation has its own attributes (exquisite sunsets off the beach, tranquil water environment at the Water Gardens, tranquil “green” setting in the Garden locations, and the more active and “happening” events to be seen from the Resort Pool locations). www.tesorocostarica.com/ws_project/site_plan.html
The Product – Condominiums – are offered in six different floor plans ranging in size from 1,200 sq. ft. to nearly 3,000 sq. ft., in either “stacked flat” or “townhome” configurations. Of the six floor plans, we offer 1 One-Bedroom/One-Bath Plan; 3 Two Bedroom/Two or Two and One Half Bath Plans; and 2 Three Bedroom/Three and One Half Bath Plans. Prices range from the low $200,000 to over $1,000,000 depending on size and orientation. www.tesorocostarica.com/ws_project/floor_plans.html
Development: In addition to being uniquely located geographically, the community is uniquely amenitized. Its size allows for it to be a community niche between the “mega resort” and the “small condo neighborhood” into which all other competitors seem to fit. With 142 residential properties, the community is large enough to support amenities on a grand scale, and convenient services such as onsite Vacation Rental & Resale Management, Concierge Services, Food & Beverage Services, Spa & Fitness Center, Private Housekeeping, etc. Yet, the community offers all of this without being a resort on a grand scale, where each participant gets lost in the “tourist hustle and bustle.”
The Development Team brings over 20 years of Master Planning and nation-leading country club and active adult community development and real estate sales in the United States, and has engaged the best of the best to comprise its Costa Rica Consultant Team. www.tesorocostarica.com/ws_amenities/team_tesoro.html
Market: The market is very active and competitive. Supply and demand of product are high. Jaco Beach to the north began as a little surfing town and has grown to be one of the hottest tourist markets in Costa Rica. It is filled with little souvenir shops, restaurants, strip centers, etc. and while the beaches are nothing to talk about, it offers some of the best waves to ride. Here, condo high-rises are going up like weeds, and, unfortunately, the crime rate is following. www.tesorocostarica.com/ws_project/pricing_availability.asp
Quepos/Manuel Antonio to the south is another destination-resort and tourist location, but of a totally different ilk. Anchored by the Manuel Antonio National Park, this area offers the visitors nature like you see only on The Discovery Channel. With fewer souvenir shops, this is a more scenic destination and draws a totally different clientele. The bar scene isn’t quite as active, but the elegance and level of sophistication in both restaurants and real estate property is on a dramatically higher scale.
This is where TESORO fits in so nicely. TESORO is close enough to both of these destinations to provide its residents access to either town after just a short drive. The difference is that the TESORO residents get to return to their unique and exquisite resort retreat, far from the tourist “noise” and traffic, and live like a true Costa Rican when the day is done. They can go out to their reclusive and vast beach, jog, walk the dogs, fish right from the surf, or just enjoy the tranquil and magnificent sunsets, and do this with just a small group of friends, or all by themselves. There just isn’t anyone else there to bother you…it is your beach and it always will be.
VRP: Vacation Rental Program (VRP) – TESORO will have an active VRP for those investors looking to purchase a property for rental income. Developers anticipate more than 100 Units (2/3 of all properties sold) will be placed in this program. Property Management of these operations will generate in excess of $1.0MM per year. Concierge Services will be provided at all levels for buyer’s convenience, including maintenance of vacant properties for owners.
Marketing: There is a full marketing program in place using the following venues: Website, Online Advertising and Search Engine Optimization, Local Broker Participation Program (paying the highest commissions offered in the area), International Broker Participation Program, large local advertising presence consisting of a very active billboard campaign, magazine and newspaper ads, and the largest advertising positions held in the Juan Santamaria International Airport, Seminars presented in the USA, and a Public Relations Campaign participating with others to give back to the local communities by channeling resources to the schools, parks, and other public facilities.
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