DEVELOPMENT PLAN
Phase I construction of the first Las Nereidas property is set to finish in April 2024. This JV will fund expansion of this property and additional properties ahead of a broader fundraise.
phase i: Todos Santos JV
From the initial $3.5M Joint Venture, capital will first go towards taking Mar, the flagship Las Nereidas property, from its current 2 units to 5 total, as well as landscaping and PR. The remaining capital from this raise will go towards Casa Desierto (10 units and a communal main building). Depending on investment interest, Casa Duna will be a third property added to the portfolio (increase total JV raise to $4.5M), located adjacent to Mar and similar in size. 10% or 350K of the total raise will be allocated towards the Operating Company at a 2M valuation.
These initial developments will be used to gather operating data in preparation for a larger raise. The second phase of growth will see a successor investment vehicle fuel Las Nereidas’ expansion further across Baja, Mexico. The assets of this JV will be contributed to the vehicle at a 20% markup, with projected contribution set for 24-36 months after closing of this JV.
Todos Santos jv
Mar*partially complete
Casa DESIERTO
Casa Duna
LAS NEREIDAS Successor VEHICLE
Property 1: MAr
The first project under the Las Nereidas brand, Mar, is nearing completion, with its initial two units and a communal building set to finish April 2024. We expect Phase II, which consists of 3 additional units, to finish by July 2024, which will give us three months to train staff and program PR. In October, we plan to do a marketing blitz by hosting travel writers and influencers at the property to generate buzz. We expect to accept our first guests in November of 2024 right at the onset of high season.
location & images
Property 2: Casa Desierto
Casa Desierto is the second property in the Joint Venture portfolio. The land is 16,000 sqm, or 172,000 square feet, sourced at a compelling basis of $100,000. As the largest property in the initial Joint Venture, it will boast 10 units and a communal main building, all offering breathtaking panoramic views of the ocean and the surrounding desert landscape.
location & images
Property 3: Casa Duna
Casa Duna is a prospective third property in the initial Joint Venture, contingent upon investor interest. With an allocated budget of $1,000,000 for both land and improvements, the sponsorship team envisions developing an 8,000 sqm (2-acre) property adjacent to Mar. Notably, the property is owned by a close associate of Matinecock's CEO. The plan for Casa Duna includes the construction of five units surrounding a central communal space.
Las Nereidas successor vehicle
The Las Nereidas Development JV portfolio will be contributed to a successor entity for continued expansion of the branded portfolio. There will be a 20% markup at contribution from the initial portfolio basis. The exit strategy will be to sell the entire portfolio, valued with a cap rate once at scale, to an institutional buyer, generating significant alpha over a single-asset or even smaller portfolio sale.
Actionable Pipeline
Future fund portfolio exit
Institutional interest in this category is growing with Private Equity funds and small REITs acquiring singular properties and collections of high-performing rentals.
Active Acquirers
potential acquirers (local)
Mar
Casa desierto
Casa Duna
Future Vehcile
Cap Rate Compression with scale
A single short-term rental asset will trade in the 10% - 12% cap rate range, and will more likely be priced at its residential sale value. With the scale of a portfolio, we begin to attract commercial buyers and can see cap rates as low as 7% - 8%, especially as more institutional interest enters the market.
12%
8%
Mexican Cap Rates
This chart shows the distribution of cap rates across asset classes and property types from Mexican publicly traded REITs.