Industrial-promotion agency outlines vacant-asset plan and demolition reserve
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
PRIC described a 1,478-unit industrial property portfolio with 379 vacancies (122 with structural/environmental issues), a $15M demolition reserve (of which $3.6M was advanced) and a plan to build modular 'white-box' manufacturing buildings beginning in Gu—nica.
Carlos R—os Pinluisi (presented as the company's executive) reported PRIC/PRICO manages a large industrial portfolio (1,478 rentable structures plus ~700 lots) and described a multi-pronged approach to reduce vacancy and repurpose assets: targeted demolition for properties deemed not cost-effective to repair, a two-year rent-free activation incentive for long-vacant units, a sale pipeline and a model to build modern modular ‘white-box’ manufacturing facilities (primary prototype: 26,000 sq ft, modular units that can be combined).
Why it matters: PRIC's inventory and maintenance backlog are tied to regional economic opportunities and the agency's debt-service obligations. The committee focused on whether the agency has clear timelines and sufficient resources to execute demolitions and sales while preserving income to cover debt service.
Key figures and fiscal mechanics: PRIC reported roughly $58M in rent collections in the most recent fiscal year and total revenue near $72M (including interest and non-recurring sales). A fiscal-plan reserve of $15M for demolitions was established; PRIC said it received an advance of $3.6M and completed a first demolition (Naguabo), with three additional demolitions beginning in December and remaining properties scheduled through 2026. Debt-restructuring reduced outstanding bonds from $189M to $159M with a $30M close payment; PRIC recommended refinancing within three years to lower interest costs.
Committee requests and recommendations: Mayors and senators requested a site-level inventory showing vacancy duration, environmental status and classification of properties ready for sale versus those requiring major investment. Committee members suggested exploring alternative disposition mechanisms, including market-based sales and pilot municipal partnerships; PRIC agreed to provide more detailed lists and POPs for active projects.
Quotes: "We have 1,478 rentable units; 379 are vacant and 122 of those have environmental or structural issues," PRIC presenter; "we approved an activation program that gives two years free of rent for buildings vacant more than three years," the presenter added.
Ending: The committee accepted PRIC's presentation and asked for the requested property-level dataset, timelines for demolition and a breakdown of revenues and projected proceeds from proposed sales.