PrivCap strikes deal in Puerto Rico; Nets Investors 20% in 12 months
PrivCap Holdings sold its stake in the newly branded Azul in Isla Verde, Puerto Rico on Friday just 12 months after acquiring a position in the time share hotel value add opportunity. While Puerto Rico continues to face challenges brought on by both its well documented government fiscal issues along with fears of Zika decimating the hospitality industry, PrivCap, nonetheless, executed its value add strategy and exited with a handsome profit.
PrivCap CEO, Donny Cohen commented on the sale that "we accomplished our goal amidst the ongoing challenges in Puerto Rico and felt that the opportunity to sell with this type of return was the right decision for our investors. We very much believe that these are short term issues for the island that they will overcome and will continue to seek other value add opportunities on the island comparable to the ESJ Towers/Azul."
PrivCap still has one holding in Puerto Rico, the new Hard Rock Café and Rock Shop, currently under construction and slated to open this coming fall in San Juan's exclusive and trendy Condado district.