OTHER SERVICES:

PROPERTY & ASSET MANAGEMENT

Managing Commercial Real Estate in Puerto Rico is highly unique when compared to managing property anywhere else in the US.  There is the constant specter of natural disasters such as hurricane Maria 2017 or Hurricane Fiona in 2022, earthquakes on a daily basis, torrential rains on a daily basis, and their impact on aging property inventories on island which are in excess of 30, 40 and 50 years old.  Material and equipment scarcities abound on a regular basis, pricing for materials and equipment are consistently 20 to 30% higher than what most owners and operators of real estate are used to from their stateside portfolios. Population attrition over the last 10 years has resulted in a significant drain on skilled personnel on island, resulting in the establishment of a comprehensive in-house training program for all new and existing personnel so the skill sets rise to the level required to service our real estate appropriately and effectively.

These are just some of the challenges of managing property in Puerto Rico.

To that end SCPR employs a 24 hour a day/7 days a week, 365 days a year methodology that is unmatched on island.  We demand a level of vigilance and oversight that is absolutely inherent to the effective day-to-day management of real estate in Puerto Rico.  Our marketing and forecasting models are a critical first step in the implementation of an effective management program. Our vast experience in understanding how to create and maintain operational efficiencies have allowed us to facilitate the lowest operational cost basis of any Property Management company or landlord in Puerto Rico over the past 10 years.  This has allowed our clients to leverage the lower operational cost bases and increase their per square foot asking/effectuated rents by 20-30% and establish a pricing model that renders our competition ineffective and unable to compete with our properties. Because of the stability we’ve created within the operational elements of each property, our clients have been allowed to have an incredibly effective forward-looking perspective of at least 2 to 3 years, rather than simply on a annual or quarterly basis.

We take very seriously challenges of physically maintaining the structural integrity of all of our properties in Puerto Rico, constantly monitoring through our in-house and strategic professionals the impact of weather (including impending catastrophic events like Hurricanes) and subterranean events on the immediate and long-term structural viability of our properties.

We also understand that maintaining and enhancing the aesthetic elements of our properties are a critical component of any leasing program employed for these properties.  Our Properties are consistently visually superior to our competition, and we are extremely vigilant about ensuring no safety hazards are present.

Our attention to emergency planning and the establishment of both viable and comprehensive safety manuals and evacuation models for each individual asset under representation separates SCPR from our competition.  There is no more important aspect of our property management endeavors in PR than the safety and security of our tenants and clients regardless of circumstance.

In-house accounting and lease administration personnel are another critical component of our expert oversight capabilities. We are able to utilize a wider breadth of different property management databases and programs based on our clients preference. Our accounts receivable department and collection unit are the most effective in securing timely payments in Puerto Rico.  Additionally, our ability to convey expense recovery invoicing to tenants in a clear and precise manner allows for a much quicker turnaround in receiving rents and outstanding rental payments.

Our entire approach to property management is one that transforms the traditional PM engagement, to one that is revenue centric and focused, and allows us to employ a  management methodology that focuses on value creation and operational efficiencies and lowers our clients financial exposure while increasing revenue at the same time, thus providing a level of service that is unsurpassed either in Puerto Rico or the Caribbean.

LEASING

SCPR’s commercial leasing capabilities and documented performance over the past 30 years are unparalleled in Puerto Rico. With over 36 million Sq. feet of effectuated leasing deals spanning virtually every asset class including industrial, all classes of office, and retail etc. We have a track record that is unsurpassed by many stateside firms in addition to an aggregation of effectuated leases in excess of all firms in Puerto Rico combined. Over the past 10 years we have effectuated in excess of 7.5 million square feet² of leasing deals within the CPG commercial portfolio consisting, for example, of class A office leasing at 270 Munoz Rivera in Hato Rey, the finest and most exclusive Class A office product in San Juan, industrial leasing within the 2.5 million sqft WPR Industrial portfolio, and countless retail leases within the CPG retail portfolio consisting of both freestanding and in-line shopping center leasing. No other firm in Puerto Rico over the last 10 years can boast anywhere near that volume of leasing aggregately. It is the singular reason that our clients such as CPG have been able to weather the ten-year recession in Puerto Rico and maintain NOI at pre-recession levels during the entirety of our tenure here

Following the formulation of a comprehensive strategic plan which articulates the specific markets to be targeted and the implementation of the leasing program, Sea Castle actions in an extremely methodical and comprehensive fashion with its primary focus of door-to-door canvassing. Because Puerto Rico lacks a lot of the automation that most stateside markets employed with centralized inventory portals such as Costar, etc, the single most effective methodology for not only formulating a comprehensive snapshot of the overall target market by securing information from every individual company, regardless of asset classification, on lease renewals lease expiration sizes of spaces contact information for critical decision-makers, etc, is door-to-door canvassing and face-to-face interaction with prospective tenants. There simply is no more effective manner to provide our clients with an accurate snapshot of their leasing outlook and also to be able to provide them with 100% certainty the prevailing rents in any particular market or markets that allow our clients to correctly position their assets relative to where leases are being effectuated on that basis in those markets. No other firm in Puerto Rico canvases door-to-door, and no other firm in Puerto Rico has a comprehensive database of over 5000 companies island wide.

By bolstering the leasing velocity of our assets under engagement, we are able to buffer our clients from the up and down undulations in the Puerto Rican real estate market by constantly having a pipeline of viable deals ready to go. This provides our clients with 100% certainty of cash flow and the ability to model NOI projections with absolute certainty rather than having to make subjective conclusions about where the market is going or how their assets are faring juxtaposed with other like assets in the market. It is the singular reason SCPR LLC is the leading distressed asset resolution firm in PR.

Only SCPR LLC can provide that level of service and leasing production in Puerto Rico. Our unsurpassed client roster is as follows (to name a few):

PEPSICO, FEMA, BAXTER PHARMACEUTICALS, WALGREENS, FEDEX, DUFRY, US ARMY CORP OF ENGINEERS, FOX MOVIES, SUZUKI, PANALPINA, HOME DEPOT, SEARS, KMART, ECONO, SUPERMAX, PUEBLO, ASHLEY FURNITURE, GE, FRESHMART, EDIC COLLEGE, BURGER KING, CARIBBEAN CINEMAS, TJ MAXX, AMERICAN AIRLINES, PEP BOYS, BANCO POPULAR, FIRST BANK, GRAINGER, PPG PAINTS, SHERWIN WILLIAMS, GARDNER GIBSON, ETC.