Effective development incorporates all aspects of the real estate development process– from feasibility, to site constraints, to design objectives and construction implementation and opening—and wrapping these elements up with a clear understanding of the distinct financial return requirements of the various players in the project’s capital stack. Blue Crest plans and develops economically-viable and financially-sustainable development projects for the long term, regardless of the exit strategy and timing. We are committed to developing financially feasible projects, incorporating high quality designs into our planning, and constructing and operating with high-quality counterparties, all within an environment of effective, reasonable project financing and equity return assumptions.
At Blue Crest Development, we first analyze the project “in a black box”, to understand if it is financially feasible on its own merit before adding in the benefit of debt leverage. As a tool, we analyze all deals on an all-equity basis as a starting point, then move forward into adding typical senior construction financing and then, if feasible, add other elements of higher-interest (and risk) capital as the deal is modeled. A deal’s initial structure and reasonableness of exit assumptions are key elements to all parties’ ongoing satisfaction and a deal’s success.
Our objective is to provide deal structuring to Blue Crest’s projects or those of our clients to achieve sustainable dividend returns for the long term, with an executable exit strategy or long-term hold.
Knowledge of capital market players and their expectations is clearly an important component to deal structuring and development. Blue Crest has an intimate knowledge of capital market participants in the larger Caribbean, US and Latin American regions, and we understand the nuances to the Caribbean.
We have relationships and access to New York-based hedge funds, private equity firms and family offices that provide equity, mezzanine and debt financing regionally. Equally important, we have a track record with numerous regional debt lenders, including regional banks, development banks, and lead syndicators and arrangers. Michael Greve works directly with these players and determines which are a fit for a unique deal, in order to fund, finance and develop Blue Crest’s projects in an effective, realistic manner.
Blue Crest Development is at the forefront for its knowledge and understanding of planning for resorts and hotels, an expertise which has expanded into destinations at large. Michael Greve began his career over 20 years ago with Hilton Resorts Hawaii, where he was responsible for creating the Strategic Business Plan & Annual Operating Plan for the Hilton Hawaiian Village, the world’s largest non-gaming resort and a Hilton-owned asset valued several billion dollars with over 3,500 rooms today. Creating the business plan annually for Hilton’s most profitable corporate asset, which also was under a $150 million expansion, marked the beginning of longstanding expertise in creating business plans and financial plans for resort hotel developments around the globe, including Hilton, Four Seasons, Westin, W, Waldorf-Astoria, Conrad, and other branded projects.
Director of Finance Bruce Hayden, an 8-year team member with Blue Crest, adds additional expertise. He was previously the Regional Director of Finance for Hilton Hotels’ East Region, preceded by Controller and DOF functions at numerous hotels, including the Capital Hilton, the Anaheim Hilton and the Hilton Hawaiian Village, among others.
Project Financing is a skill which involves understanding capital markets and creating a project financial structure which allows for a buildable and sustainable development project, including post-opening. Blue Crest has extensive project finance experience, with Michael Greve having been involved in several billion dollars of project financings and acquisitions, in a wide range of projects for multiple clients or as a principal. He understands debt covenants, subordination, guarantees, inter-creditor agreements and the intricacies, challenges and rewards of project finance.
Blue Crest’s objective is to obtain and utilize debt capital for a project’s capitalization, while providing reliable and adequate debt service coverage to lenders and financial institutions who have placed their confidence in our projects.
Financial feasibility is the backbone of successful development and works hand-in-hand in analyzing the merits and constraints of a physical site and market conditions. Financial feasibility should drive a project’s facility program, and, ultimately, the project’s design. Blue Crest’s principals have careers rooted in finance and feasibility, and, thus, it is generally the first basis for our project undertakings.
Blue Crest Development is an experienced manager of the design process, having worked as overseer and manager of prestigious design firms for upscale projects over decades. We have worked with and led many leading firms in the hotel and resort, marine, cruise ship terminal, and retail industries. Notable firms in our projects have included: OBM International, RTKL, Wimberly Allison Tong & Goo, DTJ Design, EDAW, CH2MHill, and HTH Design.
We are intimately familiar with each step in the design process, from concept through construction drawings, and have managed various design and engineering disciplines including; civil, architecture, land planning, landscape, marine, coastal, structural, mechanical, engineering, and interiors.
Blue Crest Development has experience in negotiating and executing Hotel Management Agreements, including Operating Service Agreements, Design Services Agreements, Franchise Agreements, Systems License Agreements, Centralized Services Agreements, and other HMA contracts between developer-owners and hotel companies.
Along similar lines, we are uniquely familiar with the types of agreements that ports, governments or destinations might employ to gain cruise line commitments into a homeport or port-of-call for the obtainment of financing.