Why Puerto Rico Now – Interview

Why Puerto Rico Interview
Why Puerto Rico Now interview with Adam Greenfader of AG&T and Robbie Karver of PR Consultants.  The interview was held in San Juan, Puerto Rico at the recent Investor Mastermind conference.  

 

To receive access to an advance version of Why Puerto Rico Now. Register Here. 

Together they discuss investment opportunities in Puerto Rico. In this interview, Adam and Robbie discuss why the island is ready for great growth. They also explain why the island’s economy may provide insulation from some of the global economic issues causing the recession.  Below are some excerpts from the book. Coming soon and launching in September 2022. 

In every crisis, there is an opportunity. 

Today, we find ourselves recovering from a worldwide pandemic. Supply line challenges caused by COVID 19 has made the production, distribution, and storage of critical supplies a top national priority. Puerto Rico, with over 70 years of critical manufacturing experience, is in an ideal position to lead the fight against COVID 19 for the United States. In the midst of all these challenges, there are silver linings. 

Today, Puerto Rico is about to receive the largest allocation of Federal relief funds in U.S. History.

 In what is being called Operation Bootstrap 2.0., Puerto Rico will receive over 80 billion dollars. This includes money to  construct homes, critical infrastructure, renewable energy, and other vital projects.

In addition to relief funds, Puerto Rico and the Internal Revenue Service have created a series of tax incentives. Their goal is to bring in new businesses and people to the island. Act 20/22 (now Act 60) had the unintended consequence of attracting a new breed of entrepreneurs – blockchain and crypto investors. Suddenly, Puerto Rico finds itself leading a technological revolution with thousands of people bringing new ideas, connections, and capital to the island.

To receive access to an advance version of Why Puerto Rico Now. Register Here. 

Puerto Rico Investing Mastermind

Adam Greenfader Investing Mastermind

Join us for the Puerto Rico Investing Mastermind with Adam Greenfader of AG&T  from July 25th – July 28 in Condado, San Juan to explore the rich investing opportunities in this tropical US Territory, Puerto Rico.

Click here for tickets and more information.

An island that is offering amazing tax incentives to investors willing to catch the vision of this tropical island.

What you will learn:

  • The island empowers entrepreneurs with a spectrum of assets, including smart tax incentives, a highly skilled bilingual workforce, and U.S. legal & financial frameworks.
  • 98% of Puerto Rico is opportunity zones, including many of its beach properties
  • Find out who is migrating to the island and why!

Real estate investing is one of the greatest vehicles to build wealth, but it doesn’t make sense in every market. Some locations provide incredible returns, while others make it almost impossible to make a profit. Click here for more information.

#puertorico #opportunityzone #realestateinvestments #act60 #investing#event Kathryn Morea Brian Bourgerie Ashley Tison Brett Siglin Joel BerrocalMichael Gay, CEcD Samira Yassin, CPA, Esq. Veronica Montalvo

AG&T is a real estate development and consulting company founded in 1998 with headquarters in Miami, Florida. Our  track record spans over 55 real estate development projects in Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, Dominican Republic, and various other Caribbean islands.

 

 

Puerto Rico Mortgage Bankers Association Positive about 2022

Puerto Rico Mortgage Bankers Association

The Mortgage Bankers Association of Puerto Rico positive about 2022. See video clip about the 12 month projections for the island’s economy by Adam Greenfader, managing partner at AG&T.

 

La Mortgage Bankers Association of Puerto Rico (MBA) es una entidad sin fines de lucro, establecida para mantener y preservar la industria de la banca hipotecaria alentando a sus miembros a promover y llevar a cabo una práctica responsable en la otorgación de préstamos hipotecarios y en ejercer el buen juicio de la aplicación de las regulaciones locales y federales de manera que se mantenga el buen nombre y el prestigio de las instituciones hipotecarias y la credibilidad ante los consumidores.

 

 

AG&T is a real estate development and consulting company founded in 1998 with headquarters in Miami, Florida. Our  track record spans over 55 real estate development projects in Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, Dominican Republic, and various other Caribbean islands. 

 

For more information about Puerto Rico contact us.

 

18 Billion For The Next Great Construction Boom

San Juan, Puerto Rico. Last week The Puerto Rico Builders Association held its 70th year conference in San Juan Puerto Rico. The historic event was inaugurated with a conversation on Financing the Next Great Economic Construction Boom.  The panel included Michael McDonald, Executive Vice President and Group Director at Firstbank, Luis Alemañy President and CEO at the Economic Development Bank of Puerto Rico, and Eric Delgado Business Banking Relationship Manager at Acrecent Financial Corporation and Adam Greenfader, Managing Partner at AG&T. It was clear from the conference panelists, that after more than fifteen years of stagnate growth, Puerto Rico appears ready to build back better. Billions of dollars of FEMA and CDBG-DR funds are being allocated in what will be the largest government funding program in US history.  While much of the Federal funds will be used to subsidize projects, the group was in agreement that there is a huge need for private investment and capital to bridge the financing gapMichael McDonald, Executive Vice President and Group Director at Firstbank, made the historic announcement that the bank is opening up its construction division. Several members from the newly formed team were present in the packed room including Carlos Navarro and Mei Li Tsai Rivera. “There is no better indicator of an economy that is ready to grow that when a bank reopens its construction division”, quoted Alfredo Martínez-Álvarez, Jr., Chairman of the Puerto Rico Builders Association. Equally promising, Luis Alemañy President and CEO at the Economic Development Bank of Puerto Rico, was asked about the much awaited CDBG-DR funding. Mr. Alemañy explained that the Economic Development Bank of Puerto Rico has already started allocating over $225 Million dollars to small entrepreneurs. The group was especially receptive to the fact that the grants are being disbursed in $50,000 tranches and does not require repayment. Since 2008, Puerto Rico has gone from twelve financial institutions to less than four. Eric Delgado Business Banking Relationship Manager at Acrecent Financial Corporation, sees a new role for niche lenders filling that gap in Puerto Rico.  He specifically discussed how Acrecent can play a role in funding new construction projects. “We are able to get to funding much faster than traditional banks and also have the capacity for higher loan to coast ratios.  Both Firstbank and Acrecent mentioned that capital is seeking anywhere from 25%-35% of project equity. “As Puerto Rico gets ready to build thousands of much needed homes, critical infrastructure and other key projects, it will be up to both private and public institutions to step up and provide the much needed capital and leadership”, quoted Adam Greenfader of AG&T.  All of the panelist were in agreement that the island in the next few years is ready for strong growth. They specifically mentioned that in addition to the more than 8 billion dollars of Federal Grants, Puerto Rico has one of the most robust tax incentives and credit programs in the world. The hospitality incentive with a 40% tax credit was specifically highlighted as a very strong component of any capital stack today. Helping to plan a better future for the island, The Puerto Rico Builders Association will be holding its annual conference on September 20 and 21, 2022.  Speaking and sponsorship opportunities are available and you may contact AG&T at contact@agandt.com.   AG&T is a real estate development and consulting company founded in 1998 with headquarters in Miami, Florida. Our  track record spans over 55 real estate development projects in Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, Dominican Republic, and various other Caribbean islands.  

Adam Greenfader Shares New Opportunities in Puerto Rico

Adam Greenfader

Adam Greenfader, Managing partner of AG&T (7 minute video) speaks on new opportunities in Puerto Rico. Learning this video about the the island’s history and how you can learn from the past to generate real value and  long term economic growth. The video includes new information about tax incentives, the tourism tax incentive, Act 20/22, and other tax credits for real estate development. Contact us for more information and to learn about Why Puerto Rico Now

AG&T is a real estate development and consulting company founded in 1998 with headquarters in Miami, Florida. Our track record spans over 55 real estate development projects in Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, Dominican Republic, and various other Caribbean islands.

 

State of the Caribbean Hotel Market

On Tuesday, March 16, 2021 at 10:30am, we held the ULI State of the Caribbean Market Place webinar. The event boasted some of the top industry leaders in finance, brokerage, and development on what’s happening in the Caribbean hotel market. Speakers included Juan Corvinas Solans, Rogerio Basso, Alexandra Lalos, and Christian Charre, and Brad Dean. Moderated by Adam Greenfader.  

 

Returns on Resilience in The Caribbean

ULi Speakers

As the world struggles to return back to normal from the Covid19 pandemic, environmental concerns continues to loom as an area of great concern for world and the Caribbean region in particular.   What strategies have institutional capital,  developers, reinsurance companies and owners in the Caribbean pursued to protect their properties from climate-related risks? Do these resilience investments make business sense as a development objective? What has the capital market response been? And how have developers and property owners measured their success? 

Speakers: 

Jan Raes, ABN AMRO  Global Sustainability Advisor  

Esteban Biondi, ATM Associate Principal

Koen Olthuis, Waterstudio NL, Co-founder

Adam Greenfader, AG&T, Managing Partner 

 

 

Topics to Include:

1. What is the capital doing about investing in resilient projects?

2. How are developers integrating resiliency practices into their projects?

3. The $ of Resiliency – Beyond the ULI Heitman Report

4. Aquatic Architecture: is it just a matter of Time?

 

Critical Manufacturing and Puerto Rico USA

Luis Fortuno and Congresswoman Jennifer Gonzalez

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The panelists :

 

 

 

The ULI Webinar has an incredible array of information crammed into 90 minutes and it gives a great snapshot for the many initiatives being introduced and planned to help the Puerto Rican economy and create more quality jobs. If I had to some it up in three words, Mo is back. Mo of course being momentum.

 Each of the speakers brought a different perspective. Congresswoman Gonzalez Colon noted her primary mission is the reconstruction of the Island and to shephard the many supporting bills recently introduced in the US Congress. Former Governor Luis Fortuno brought an informed Wash DC think tank perspective, Adam Greenfader is one of Puerto Rico´s most passionate advocates, Andy Carlson of JLL (Jones Lang LaSalle) brings experienced commercial  insights from the world´s second largest public brokerage firm, Dr Deusch stated his case for the reasons he brought his Swiss/German manufacturing business to Puerto Rico because of a need for precision and reliability, while Noel Zamot has a finger on the ethical pulse of developing new business in Puerto Rico.

The conversations were upbeat and positive. For instance, Congresswoman Colon made a presentation on MMEDS which was introduced last month to Congress under the bill H.R. 7527. This bill provides tax incentives and tax credits for companies creating manufacturing plants and jobs in economically distressed areas in the US and its territories. The criteria for distressed is even stricter than the recent Opportunity Zone legislation passed in late 2017. When the Congresswoman showed the MMEDS qualifying maps there were smaller areas in very non desirable locations in the US whereas Puerto Rico literally had a much larger proportional area in some desirable locations. And she stated very clearly that MMEDS is one of the very few legislative items that is drawing bi-partisan support from both sides of the aisle.

The entire panel then weighed in on the competitive advantages that Puerto Rico has when competing with the mainland U.S. including much lower labor costs by as much as 60% lower in some cases, an experienced manufacturing labor force going back 100 years, the University of Puerto Rico at Mayaguez which is a top 10% engineering school for the entire U.S. and which is very much geared to provide the engineering and chemistry talent to support Puerto Rico´s manufacturing base. That even today five of the top ten selling drugs internationally are produced in Puerto Rico and 12 of the top 20 pharmaceutical companies have plants in Puerto Rico. Luis Fortuno noted that Puerto Rico had more than $40 billion USD in pharmaceutical exports in 2019 but has the capacity to increase this substantially. The panel noted that some closed down plants are almost in turnkey conditions should manufacturers wish to return or expand capacity. It would not take much. Maybe a recession of the Jones Act, or at least an exemption for an extended period of time, might be the necessary catalyst. There are some interesting new developments on this front as was evidenced last week by Hawaii noting that 85% of their informed populace is all for rescinding the Jones Act as it costs that Island 1.2 billion USD in additional transportation and cost of goods fees.

Progress is being made on seeking some type of exemption under the taxing provisions of GILTI as it adds a 10%+ tax on profits for CFCs (controlled foreign corporations) which unfortunately applies to the US territories since the do not fall under the IRC (Internal Revenue Code). On May 1, 2020, Congresswoman Stacey E. Plasket, representing the US Virgin Islands, filed Bill HR 6648 – the Territorial Economic Recovery Act, that if becomes law, it will exclude our territories from much or all of the GILTI taxation, under certain provisions.

On April 3, 2020, Congresswoman Jennifer González, resident Commissioner for Puerto Rico, introduced Bill HR 6643, the Securing National Supply Chain Act of 2020, to provide various tax credits to Economically Distressed Zones, including a tax credit on the amount of wages paid by an employer to employees in such a zone. The proposal has some overlap with HR 7527 noted above.

President Trump’s Special Representative for Puerto Rico’s Disaster Recovery,  Rear Admiral Peter Brown, lead two delegations to Puerto Rico in August 2020, the last visit being last week. I am told the trip was very successful as a big priority was to visit and understand the many advantages of pharmaceutical manufacturing in Puerto Rico.  AG&T is committed to bringing our network top information and access to our industry’s leaders. 

 

Time to Bring Critical Manufacturing Back To Puerto Rico?

Critical Manufacturing Puerto Rico

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As we sit today in the middle of a world pandemic, a few things seem certain. The Corona Virus health crisis has forever changed our relationship with globalism and our new understanding how manufacturing keeps us all safe. This is especially true of the pharmaceutical industry. With shortages of basic supplies, medicines and protective gear, is it time to bring critical manufacturing back to the United States

The answer seems to be a resounding, “how fast.” But how do we do this, now that most of our manufacturing has been shipped to foreign locations? The answer might be right here at home. 

Puerto Rico has played a historic role in America’s manufacturing since the 1940’s.  In this conversation with Luis Fortuño, partner at Steptoe and Johnson (Governor of Puerto Rico 2009-2013), it is clear that since Operation Bootstrap, Puerto Rico has been a major contributor to The United State’s pharmaceutical manufacturing. 

The island has three key elements that make it very attractive for manufacturing.

  1. Puerto Rico has a vast network of exsisting mission ready manufacturing plants.
  2. The manufacturing work force on island has decades of proven track record.
  3. The universities (RUM in particular) develops top recruits for international firms in engineering, life science and technology

So what happened? 

“Well, it was really a confluence of many events, some global and others local”, according to Mr. Fortuño. The North American Free Trade Agreement (NAFTA) created incentives for companies to move to Mexico and Canada. Countries like Ireland and China created elaborate tax and other incentives to attract business. Section 936 of the Tax code expired – which was a critical component of incentivizing manufacturing on the island. To learn more, read Why Puerto Rico Now. 

Notwithstanding, Puerto Rico’s economic crisis, the island’s antiquated energy grid, and a wasteland of destruction caused by hurricanes in 2017, Puerto Rico is still in an ideal position to help USA quickly ramp up critical manufacturing production.  In fact, the island today currently out preforms States like California, Indiana, North Carolina, and Pennsylvania.  

Are there any Potential Roadblocks?

As part of the 2017 Tax Act, the new tax on Global Intangible Low-Taxed Income (GILTI) was proposed as a way to target profitable firms that are based abroad – known as controlled foreign corporations. For tax purposes, Puerto Rico is treated as a foreign jurisdiction and the 2017 Tax Act is bad news for companies doing business on the island. Patent-dependent sectors like pharmaceuticals and medical equipment and supplies account for nearly 35 percent of the total employment in manufacturing. Pharmaceutical companies alone employ approximately 90,000 Puerto Rico residents. 

Where do we go from here?

Today there are several initiatives to help bring manufacturing back to the United States, Puerto Rico and other economically depressed areas. One such initiative is HR 6443, authored by Puerto Rico’s Resident Commissioner, Jenniffer González-Colón and sponsored by Donna Shalala (D-FL), Representatives Rob Bishop (R-UT), Darren Soto (D-FL), Ruben Gallego (D-AZ), and Peter King (R-NY).  

See article below. 

Puerto Rico’s Resident Commissioner leads bipartisan legislation that would secure the National Supply Chain

Together we will get through these very challenging times. This too shall pass.

Interested in telling your story about Puerto Rico or the Caribbean? Join us at AG&T Network.