Caribbean Property Group assumes control of Paseo Caribe
Development
By : ALEXANDER LÓPEZ
alopez@caribbeanbusinesspr.com; cbprdigital@gmail.com
Edition: August 16, 2012 | Volume: 40 | No: 32
uxury residential offerings experiencing strong buyer demand
Caribbean Property Group LLC (CPG) is transitioning from financial partner to managing partner and developer of
Paseo Caribe, San Juan's newest open-air waterfront retail and residential neighborhood, which overlooks Condado
Lagoon and the Atlantic Ocean.
In this new and expanded role, CPG assumes sole control of all development and project management for residential
sales, tenant mix, retail leasing and opening-related activities. The property had been under management of San
Geronimo Caribe Project Inc.
CPG is the operating partner of Caribbean Real Estate Opportunity Fund 2005 L.P., a $472 million real-estate fund
and sponsored by CPG, Whitehall (a Goldman Sachs affiliate) and Perry Capital. CPG has a variety of operations
throughout the Caribbean as well as in Central and South America. In Puerto Rico, it operates three divisions.
CPG's development division focuses on large-scale projects and renovations, and provides management and oversight.
This division is overseeing the Dorado Beach Hotel project, which it plans to redevelop as a Ritz-Carlton Reserve, a
new "six-star" luxury brand and the only one in the hemisphere (the only other one in the world is in Phulay Bay,
Thailand). CPG will also demolish the existing Cerromar Hotel at the same location, and build a new hotel and casino
in its place.
The Ritz-Carlton Hotel & Casino and Radisson Ambassador Plaza Hotel & Casino, both in the San Juan metro area,
comprise the local component of CPG's hospitality division. In addition, CPG manages hotels in Aruba, Costa Rica,
Dominican Republic, Panama and Trinidad & Tobago.
The local commercial division manages emblematic properties such as 270 Muñoz Rivera Ave. (also known as the
McConnell Valdés building) in San Juan's Hato Rey sector, Galería Paseos (a three-story enclosed shopping center in
the metro area), and the Puerto Rico Industrial Portfolio (a 2.2 million-square-foot warehouse and distribution
portfolio located throughout the metropolitan area.)
"We have assembled an outstanding and talented team to execute our vision and complete Paseo Caribe, redefining
the luxury lifestyle experience in Condado," stated Barry Breeman, vice chairman of CPG. "We are thrilled to take on
this new role as a retail facility, parking structure and the new Residences at Bahía Plaza, which reinforce our goal to
complete the entire facility by spring 2013."
Paseo Caribe's luxury residential offerings have experienced strong buyer demand, with more than 70% of the
Residences in Caribe Plaza and over one-third of the Residences in Laguna Plaza sold or contracted for sale.
These milestones represent a significant sales achievement that reinforces CPG's vision of creating a fully integrated
waterfront lifestyle experience, which reaffirms the market's enthusiasm for the Paseo Caribe neighborhood.
With additional project enhancements under development, such as offering the Residences at Bahía Plaza later this
year, demand for Paseo Caribe is expected to continue. This has prompted the developers to convert a portion of the
retail space to residential, thereby increasing the total number of these units from 45 to 89.
"There are many aspects a buyer looks for in today's luxury residential market—its unparalleled location, product and
service, along with the developer's credibility—and CPG ensures all these factors are met," said John Tolbert, principal
& managing director of Revelation Consultancy LLC & project director for Paseo Caribe.
"Having CPG take on this larger role as developer further enhances the value proposition for Paseo Caribe, which
underlines why our retail and residential offering is the product and address of preference for luxury real-estate
buyers in San Juan," he noted.
"From Condado to Dorado, our business model has always been about credibility, reliability and trust," said Mark
Lipschutz, principal & CEO of CPG. "Our enhanced involvement with Paseo Caribe and our re-envisioning of Dorado
Beach only strengthens and elevates the island's luxury resort and residential offerings, and our commitment to the
growth and success of the Puerto Rico community."
PROJECT COMPLETION EXPECTED BY MID-2013
The retail and parking structures have been topped off, with only cosmetic and finishing work remaining. The entire
project is expected to be completed by mid-2013.
CPG has acquired, developed or redeveloped more than $3.3 billion in real-estate assets, which span the residential,
retail, commercial, industrial and hospitality industries in Puerto Rico and throughout Latin America.
Paseo Caribe, on Ponce de Leon Avenue at the Gateway to Old San Juan, is steps from Condado Lagoon, Fort San
Geronimo and the Atlantic Ocean. The mixed-use development includes three distinctive residential offerings at
Caribe Plaza, Laguna Plaza and Bahía Plaza, which are thoughtfully designed to appeal to different luxury lifestyle
enthusiasts, along with open-air fitness centers, outdoor venues for private gatherings and secure parking facilities,
which provide residents a true sense of community and well-being.
Thus far, the majority of buyers have been local; many are empty nesters relocating from communities such as
Dorado and Guaynabo. They seek the same comfort and space that is available in their previous homes, without the
burden of having to maintain them.
The project's centerpiece will be The Shops at Paseo Caribe, the newly developed retail component that offers an
authentic experience similar to neighborhoods in New York, Barcelona or Buenos Aires, with a mix of renowned local
merchants, global retailers and 40 to 50 specialty shops, boutiques and restaurants. The retail component, which is
unique to the island, will make Paseo Caribe the only fully integrated lifestyle center in Puerto Rico.
The Caribbean Real Estate Opportunity Fund is the only such pool of capital with its sole concentration in Central
America and the Caribbean. The Caribbean Fund has acquired assets with a value of more than $750 million. It has
$230 million in remaining equity to invest in real-estate assets throughout the Caribbean and Central America.