Spearhead Capital
Spearhead Capital
The most common diligence question is also the most important: how are returns calculated where conventional comparables do not yet exist? The methodology is deliberately simple. Underwriting begins from an observable entry price, measures the observable spread to established regional markets, and applies a single assumption: the degree to which that spread closes by disposition. All subsequent figures follow arithmetically.
Acquisition prices reflect current offers from motivated sellers in an all-cash market. Institutional capital is returning in two waves — sovereign debt and energy now; real assets later. Today there is no real-asset institutional bid: that first wave is validation and future exit demand, not competition.
Beachfront land · $200/m² acquisition + costs = $220/m² all-in ($20 PSF) · Hotels · ~$38K/key acquisition (~$65K/key all-in) · Caracas trophy office · $2,000/m² ($186 PSF) all-in hard capMargarita beachfront traded at $2,200/m² ($204 PSF) in 2011 — today’s basis is one-tenth of that print. Beachfront lots in Tulum list at $1,428–1,594/m² today (Christie’s). Margarita hotels run a ~$55 ADR against the $349 2025 Caribbean average (IRR Q1 2026). Caracas trophy office averaged a documented $5,500/m² in 2012 (FVI) against a $2,000/m² all-in entry cap.
~10× to its own 2011 print · ~6.3× ADR gap · documented in the MemorandumNo transaction is underwritten to the comparable. The base case assumes partial recovery — 59% of Margarita’s own prior peak for land; a $190 ADR (~54% of the 2025 Caribbean average) for hotels; ~60% of the tier’s documented 2012 average for the Caracas office.
All assumptions are adjustable below · figures recomputeThe most direct expression of the strategy: acquisition of a prime beachfront assemblage at distressed basis, held and secured through the normalization period, and sold into a recovering market. With no operating component, the return is driven entirely by the differential between entry basis and exit value.
| Beachfront assemblage · 30,940 m² × $200/m² ($19 PSF) | $6,188,000 |
| Title work, legal & survey | $245,000 |
| Property taxes, security & carry reserve — full hold period | $442,000 |
| Total capitalization — 100% LP equity · $200/m² acquisition + costs = $220/m² all-in basis | $6,875,000 |
USD / m² · beachfront · gold marker = underwritten exit value
| Year 0 — acquisition, all-in | ($6,875,000) |
| Years 1–3 — property taxes, site security & upkeep | ($110,500)/yr · prefunded reserve |
| Year 4 — gross sale · 30,940 m² × exit $/m² | $40,222,000 |
| Selling & transfer costs (5%) | ($2,011,100) |
| Net exit proceeds | $38,210,900 |
| Less: acquisition fee · 2% at entry | ($137,500) |
| Less: management fee · 2% p.a. on deployed capital × 4 yrs | ($550,000) |
| Return of LP capital | $6,875,000 |
| LP preferred · 8% simple × 4 yrs | $2,200,000 |
| GP carried interest — 20% of profit, after pref & catch-up | ($6,129,680) |
| Total to LPs — capital + preferred + 80% split | $31,393,720 |
Entry basis and transaction costs are observed market values; only the exit is assumed. Adjust either input to stress the underwriting.
At $1,300/m², the underwritten exit assumes recovery to 59% of Margarita's own 2011 peak — 27% of today's Caribbean beachfront average.
DEFAULTS REFLECT THE FUND'S BASE CASE; THE FULL THREE-SCENARIO MODEL IS AVAILABLE IN THE PRO FORMA WORKBOOK.
DEFAULTS CORRESPOND TO THE FUND'S BASE CASE (“TRANSITION HOLDS”) AND RECONCILE TO THE PRO FORMA WORKBOOK'S PER-DEAL ECONOMICS (LAND I); ON ANY DIVERGENCE THE WORKBOOK IS AUTHORITATIVE. LAND COMPARABLES: SPEARHEAD COMP FILE, EXHIBIT C — VERIFIED LISTINGS, 2025–26; AVAILABLE ON REQUEST. ILLUSTRATIVE, NOT A GUARANTEE. NET FIGURES REFLECT A 2% ACQUISITION FEE AT ENTRY, A 2% P.A. MANAGEMENT FEE ON DEPLOYED CAPITAL (SETTLED AT EXIT FOR CLARITY), AND THE FULL WATERFALL PER THE FUND TERMS. CARRY IS PER-DEAL — NO CROSS-COLLATERALIZATION — SUBJECT TO A FUND-LEVEL CAPITAL CLAWBACK AT WIND-UP. ALL FIGURES ARE PRE-TAX; ENTITY-LEVEL VENEZUELAN TAXES DEPEND ON STRUCTURING AND ARE ADDRESSED IN DEFINITIVE DOCUMENTS.
The same entry arbitrage, combined with an income-producing operation. The transaction acquires a distressed hotel at a fraction of replacement cost, then goes dark for years 1–3 — renovation and reopening — before income begins in year 4, ramping to stabilization over roughly two operating years. Rates re-establish from Margarita’s crisis-era ~$55 ADR (a Spearhead estimate — midpoint of $45–65; no formal STR reporting exists for Venezuela) toward the $349 2025 Caribbean average (IRR Q1 2026); the exit is valued on stabilized net operating income.
| Acquisition · 85 keys × $38K/key | $3,230,000 |
| Renovation & repositioning · $25K/key | $2,125,000 |
| Pre-opening, working capital & contingency · ~$2K/key | $145,000 |
| Total capitalization — ~$65K/key all-in vs $352,188/room — the region’s last major portfolio trade | $5,500,000 |
ADR · USD / night · gold marker = underwritten stabilized rate
| Year | ADR | Occ. | Room Revenue | NOI · 35% |
|---|
The hotel is dark through year 3 (renovation & reopening). Income begins in year 4 and ramps to the underwritten stabilized ADR and 66% Caribbean-average occupancy over ~2 operating years. Sale value equals stabilized net operating income divided by the exit capitalization rate.
At a $190 stabilized ADR — ~54% of the 2025 Caribbean average of $349, below the Dominican Republic’s $236 — and a 10% exit capitalization rate, the stabilized asset is valued at 2.4× total project cost.
DEFAULTS REFLECT THE FUND'S BASE CASE; THE FULL THREE-SCENARIO MODEL IS AVAILABLE IN THE PRO FORMA WORKBOOK.
DEFAULTS CORRESPOND TO THE FUND'S BASE CASE (“TRANSITION HOLDS”) AND RECONCILE TO THE PRO FORMA WORKBOOK'S PER-DEAL ECONOMICS (HOTEL — MARGARITA, ~85 KEYS; ASSET MAPPING IS A PIPELINE DECISION); ON ANY DIVERGENCE THE WORKBOOK IS AUTHORITATIVE. ADR & OCCUPANCY COMPS: IRR CARIBBEAN HOSPITALITY MARKET REPORT Q1 2026 (COSTAR DATA) — AVAILABLE ON REQUEST. 35% NOI MARGIN HELD FLAT, INCLUSIVE OF PROPERTY-LEVEL TAXES. NET FIGURES REFLECT A 2% ACQUISITION FEE AT ENTRY, A 2% P.A. MANAGEMENT FEE ON DEPLOYED CAPITAL, AND A 3% OPCO FEE ON HOTEL REVENUE BEFORE NOI. CARRY IS PER-DEAL — NO CROSS-COLLATERALIZATION — SUBJECT TO A FUND-LEVEL CAPITAL CLAWBACK AT WIND-UP. ALL FIGURES ARE PRE-TAX; ENTITY-LEVEL VENEZUELAN TAXES DEPEND ON STRUCTURING AND ARE ADDRESSED IN DEFINITIVE DOCUMENTS. ILLUSTRATIVE, NOT A GUARANTEE.
The income and downside leg. ~2,750 m² of trophy Class A — the Torre Luxor / Torre Digitel / FVI-portfolio tier in Las Mercedes, La Castellana, Chacao, Altamira or El Rosal — acquired at a $2,000/m² ($186 PSF) all-in hard cap against current tier asks of $2,700–3,900/m² (asking; closings documented at ~50–91% of asking). Year 1 is acquisition, title and fit-out; hard-currency rents commence in year 2 and lease up to 80%; the exit is underwritten to only ~60% of the tier’s documented 2012 average — never to the ~$7,000/m² 2007 maximum, which is a ceiling reference only.
| Acquisition · 2,750 m² · prime east submarkets | $4,675,000 |
| Fit-out, title & closing | $825,000 |
| Total capitalization — $2,000/m² ($186 PSF) all-in · hard cap in the investment guidelines | $5,500,000 |
USD / m² · trophy Class A · gold marker = underwritten exit value
| Year | Occupancy | Rent Revenue | NOI · 65% |
|---|
Year 1 is acquisition, title and fit-out — no income. Rents commence in year 2 and lease up 40% → 65% → 80%; the landlord bears condominio on vacant space (65% NOI margin). Sale value is the exit price per square meter, net of 5% costs. No OpCo fee applies — it is hotel-only.
At $3,300/m², the underwritten exit assumes recovery to only ~60% of the tier’s documented 2012 average of $5,500/m² (FVI public-offering data).
DEFAULTS REFLECT THE FUND'S BASE CASE; THE FULL THREE-SCENARIO MODEL IS AVAILABLE IN THE PRO FORMA WORKBOOK.
DEFAULTS CORRESPOND TO THE FUND'S BASE CASE (“TRANSITION HOLDS”) AND RECONCILE TO THE PRO FORMA WORKBOOK'S PER-DEAL ECONOMICS (CARACAS OFFICE); ON ANY DIVERGENCE THE WORKBOOK IS AUTHORITATIVE. MARKET EVIDENCE: CÁMARA INMOBILIARIA METROPOLITANA / TIR INMOBILIARIOS (CLOSINGS AT ~50–91% OF ASKING; CURRENT $2,000–2,500/M² — DESCIFRADO, MAR 2023); FVI PUBLIC-OFFERING DATA — $5,500/M² 2012 AVERAGE → ~$1,000/M² 2020 (BANCA Y NEGOCIOS, JUN 2021); 2007 MAXIMUM ~$7,000/M² (TIR/FVI REGISTERED-TRANSACTION STUDY, BANCA Y NEGOCIOS, AUG 2019). ALL ASKING PRICES LABELED ASKING. NO OPCO FEE — HOTEL-ONLY. NET FIGURES REFLECT A 2% ACQUISITION FEE AT ENTRY, A 2% P.A. MANAGEMENT FEE ON DEPLOYED CAPITAL, AND THE FULL WATERFALL PER THE FUND TERMS. CARRY IS PER-DEAL — NO CROSS-COLLATERALIZATION — SUBJECT TO A FUND-LEVEL CAPITAL CLAWBACK AT WIND-UP. ALL FIGURES ARE PRE-TAX. ILLUSTRATIVE, NOT A GUARANTEE.
No operating overhead, no staffing, no revenue forecast. The underwriting reduces to two figures — acquisition cost per square meter and disposition value. Proceeds are realized once, at exit.
The hotel produces nothing in years 1–3 while it is renovated and reopened. Income begins in year 4, the ADR differential closes progressively, and the exit is anchored to verifiable stabilized income rather than comparables alone.
Rents commence in year 2 and lease up while the market normalizes. The exit is underwritten to only ~60% of the tier’s own documented 2012 average — and in the downside the building is simply held for income at entry basis.
The Fund employs all three: land banked early at the deepest discounts, hotels repositioned as tourism re-rates, and trophy Caracas office carried for hard-currency income. In every case the underwriting discipline is identical — basis, spread, exit. Carry is per-deal — no cross-collateralization — subject to a fund-level capital clawback at wind-up.