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(Leaseback opportunity, cap rate %, and further details found towards bottom of page)
For the first time since it’s creation, the famous Tantalo Hotel/Restaurant/Bar property of Panama City’s notorious Casco Viejo (or Casco Antiguo), is now available for purchase. Tantalo Hotel is located in the heart of Casco Viejo, an UNESCO World Heritage site, and just 2 blocks from the Presidential Palace, 5 minutes from Downtown, and 25 minutes from Panama’s main airport. It also has a valuable location near the entrance of Casco Antiguo, providing one of the highest levels of vehicle and foot traffic in all of Casco and affording easy access in and out from the beautiful Cinta Costera (seafront boulevard) that connects to downtown and the east side of the city.
Blesso Properties (current owner/operator) envisioned an opportunity to create a unique hospitality concept that did not exist in Panama City; Casco Viejo’s first rooftop venue, a place to enjoy great Panamanian fusion tapas, nine artistically conceptualized hotel rooms and regular varied artistic programming and entertainment. Tantalo was designed to welcome locals and tourists to mingle to meet, share, work, party, and stay. On the first day that Tantalo opened in early 2012, the venue was full, and apart from Covid, it has remained consistently full (bar/dining/hotel) to this day and has been profitable every year, generating strong cash flow.
Tantalo has won eight design and hospitality awards and has been featured in many publications throughout the world. The Tantalo team is always working hard to keep Tantalo fresh and interesting to keep customers coming back. The mix of creative programming, consistent high level of friendly service, fun casual environment, and pricing that is accessible to a wide range of customers, has made Tantalo what many refer to as “An Institution”. The combination of its longevity, fame and talented management team assure that Tantalo will continue to operate profitably for decades to come.
The restaurant seats 70 people on the ground floor with flexibility for small and large groups. Nearly every inch of wall space is decorated by beautiful murals and a vertical interior green wall with 900 plants. The Lobby Bar and hotel reception were carefully planned to optimize space and efficiency. The restaurant is consistently ranked in the top 20 list and has the second most reviewed restaurant in Panama—out of more than 1,000—on Tripadvisor.com.
Tantalo Hotel: Traveler’s Choice WINNER
On the 2nd and 3rd floors, the Hotel offers artistically designed rooms each designed and named after a local artist. The size of each room varies from 230 to 518 Sq Ft. and each includes LG’s latest technology smart TV’s. Fantastic furnishings, layouts, and designs make Tantalo’s hotel experience truly a one-of-a-kind.
The Roofbar on the 4th floor has a capacity of 250 and is also used for overflow eating during peak dinner and lunch times. In 2019, the Roofbar was renovated to include a 5th floor, 360-degree viewing area for up to 10 people. The Roofbar has a retractable canopy to protect equipment, employees, and customers from rain and is equipped with a surround music system that allows DJs and musicians to connect their equipment and perform across the area with an exceptional quality sound. Other features included a VIP lounge area and beautiful art installations. The location and height of the building allows tourist to take stunning photographs of the Old Town and the city skyline. Prior to Covid, our team had planned installing structural glass on the atrium to provide additional valuable space and increase revenues and we still plan to move forward with this plan after the building sale.
The building is a historic, former apartment building that was gut renovated in 2010 into a 9-unit Boutique Art Hotel with a ground-floor restaurant, bar, and rooftop bar—two of the most popular food and beverage businesses in all of Panama.
The building underwent a second full cosmetic renovation in November 2019, and upgraded its AC, water heater system and kitchen equipment.
Ground Floor. Restaurant, Lobby bar, Hotel reception, Kitchen, & bathrooms 4.408 Sq Ft
Level 100. First Floor. Hotel rooms and conference room 3.790 Sq Ft
Level 200. Second Floor. Hotel room and admin office 3.790 Sq Ft
Level 400. Third Floor. Roofbar Terrace, A/C machinery, storage area and Bathrooms 2.893 Sq Ft
Total Sq Ft = 14.881.
This is truly an investor’s dream, as the offer includes an immediate leaseback opportunity to the current owner/operator for a whopping $480,000 USD annually, increasing by 2.5% each year over the course of a (renewable) 20yr lease. Due to Tantalo’s incredible reputation/popularity, and impressive yearly production of net profit, the investor who acquires this property will have no stress or worry wondering if the tenant will be able satisfy lease terms/obligations.
Cap Rate % (excluding maintenance of building structure & systems) starts at 7.385 % !!
By year 10 after acquisition, cap rate % has already increased to 8.825% !
Since late 90’s, the government implemented new fiscal regulation that ignited a rehabilitation of the area, Tantalo is currently eligible for three incentives:
Lease terms summary
Total Sq. Footage 14.881
Selling price: $6.500.000. Cost per Sq Ft. US$ 436
Annual Rent: $480.000 increasing 2.5% per year
Term of Lease: 20 Years
Tenant pays all utilities, maintenance and insurance.
Landlord only responsible for maintaining building structure and systems.
Note: This property is also available for purchase with the operating business included, please inquire for pricing.
This is a commercial investment opportunity unlike any other in Panama, and may not be available again for decades to come, if ever. Get in touch with us today for a free consultation, or to schedule a private viewing of this spectacular property!
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