$7,500,000
27 De April Santa Cruz, Costa Rica
27 De April Santa Cruz, Costa Rica
Palo De Arco Tajo – Land For Material Extraction
Great High-Yield Income Source & Strategic Investment Opportunity
This expansive 34-hectare (84-acre) property is a rare gem in Costa Rica’s booming construction industry, offering investors an established, fully permitted operation for extracting in-demand building materials.
Strategically located and equipped for immediate productivity, Palo de Arco Tajo is the only property in the region with both the permits and manufacturing infrastructure needed to efficiently produce and supply ballast, limestone, sandstone, and sand at scale.
Extraordinary Resource Value:
Backed by geological studies from U.S. and Italian experts, the property holds an estimated $90 million in proven sand reserves and $15 million in ballast reserves - a combined $105 million in potential raw material value ready for extraction.
Strong Annual Net Income:
The operation currently generates $1,000,000 in net annual income, with clear scalability potential. Given the abundant reserves and existing production setup, there is significant room to expand output and profits.
Low Operating Costs Relative to Revenue:
With monthly expenses of just ₡2,600,000 colones (approx. $5,000 USD), the operation boasts a high net margin, enabling rapid ROI.
Exclusive Competitive Edge:
Full government permits - including the rare approval for explosive methods of extraction - position the property far ahead of competitors. This license allows for faster material access, larger-scale production, and higher operational efficiency.
Growing Market Demand:
With infrastructure, tourism, and residential construction surging across Costa Rica, demand for high-quality aggregates continues to rise, ensuring a steady and expanding customer base.
At the current net income of $1M annually, the property already offers a 13% cap rate on the $7.5M asking price. However, leveraging the untapped reserves could substantially increase revenue:
Scenario 1: Conservative Expansion – Increase production by just 20% through operational scaling → projected annual net income: $1.2M–$1.3M.
Scenario 2: Aggressive Development – Maximize production capacity using full permitted extraction methods → potential to double or triple current annual net income over the next 5–7 years.
Scenario 3: Long-Term Material Reserve Monetization – At full depletion of reserves (based on geological estimates), the total resource value could exceed 14x the purchase price.
Offered at $7,500,000, Palo de Arco Tajo represents a turnkey high-revenue business with vast growth potential - a rare combination of secure permits, valuable resources, and proven profitability in one of Central America’s most dynamic construction markets.
Luxury Properties Costa Rica is Exclusively Representing Buyers for this property
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