TREASURES AT EMERALD BAY
NUEVO MAZATLAN, MEXICO
A UNIQUE
BEACH FRONT PROPERTY
Prepared by Ron Gollehon
Grupo Summerlin S.A. de C.V.
OVERVIEW OF MAZATLAN
Mazatlan, located in the State of Sinaloa, is called the Pearl of the Pacific Riviera. It is the most important Sea Port on the Pacific Ocean in Mexico. Mazatlan lies directly across the Sea of Cortez from Cabo San Lucas and approximately 200 miles north of Puerto Vallarta. Cruise Ships and Cargo Ships frequent the Sea Port and its commerce provides many of the supplies for the surrounding states. New highways are being built within the city for access to the International Airport, as well as new highways linking Mazatlan to Puerto Vallarta, Durango and Guadalajara.
Present day Mazatlan has 800,000 population. Mazatlan has a very diverse culture, beginning 500 years ago when it was founded as a French colony. Unlike Cabo San Lucas (Los Cabos) and Puerto Vallarta, which have been created only for tourism, Mazatlan boasts an important arts and cultural community in Mexico, possibly only behind Mexico City in popularity. There is literally something for everyone in this beautiful city.
In downtown Mazatlan, in addition to the Sea Port, the Machado District has a European flair and contains numerous restaurants centered around the famous Mazatlan Theatre for the Arts (Angela Peralta Theater and Mazatlán Center for the Arts). The fresh food market is one of the finest in Mexico and is bustling with activity every day. The lighthouse on the Southern point of Mazatlan is the 2nd highest in the world and adds to the twinkling skyline in the evenings.
Recently completed, the Malecon is a 7- 8 mile beautiful concrete boulevard that extends completely along Mazatlan Bay. This addition allows for biking, rollerblading and strolling along this magnificent stretch of water. Every morning, you can find tourists and locals alike enjoying this new addition to the city.
Immediately to the north of the Malecon is Zona Dorada (the Golden Zone). It is the primary tourist shopping area along the beach. From early morning to the wee hours of the evening, something is always happening in the Golden Zone.
Nuevo Mazatlan, home to the premier 5 star resort, Pueblo Bonito Emerald Bay, Marina Mazatlan and Isla Mazatlan, is capturing the attention of prominent developers. This large area North of the City is the flagship for development in this new era of Mazatlan and will be provided all of the City of Mazatlan infrastructure and amenities. The new highway being built from the airport, scheduled to be completed in 2008, will bring the tourist crowd thru this area via a beautiful parkway.
Marina Mazatlan, within Nuevo Mazatlan, has become a focal point for the recent surge of investment activity. The existing Marina, El Cid, was completed in the 1990’s and will be part of Marina Mazatlan. This area is already popular with the boating crowd from the United States because of Marina El Cid. When the boating crowd realizes the additional amenities being added and the magnificence of Isla Mazatlan, Marina Mazatlan will catapult into the boating limelight.
The Federal government of Mexico has created a new tourism zone in this approximate 1,485 acre area. When completed in 4 – 5 years, Marina Mazatlan which now contains approximately 400 boat slips, will contain 1,200 boat slips and be one of the largest marinas in Latin America. In addition to 4,000 – 5,000 new homes, Marina Mazatlan will contain a comprehensive new Dry Dock Facility for the yachting/boating crowd; the largest Convention Center in Northwest Mexico; an upscale Fashion Mall; Hotels (to be anchored by the newly announced Crowne Plaza complex on the beach); and an 18 hole David Fleming golf course which will be one of the finest courses in Mexico, which is approximately 1/3 completed.
In addition, Isla Mazatlan, within Marina Mazatlan, is being featured as the only private island in a marina in the world. Isla Mazatlan contains 42 homes with boat slips that can accommodate world class yachts; 40 villas; a boutique hotel/condo, Gran Coral, with 60 rooms; and Gran Coral Sur, a 30 unit upscale hotel/condominium project, each unit containing its own boat slip. The focal point of the Island is the Lighthouse: Citrus Ocean Lighthouse Bar and Restaurant.
MAZATLAN’S TIME HAS COME
· The new 1,485 acre tourism zone, Marina Mazatlan, is a major boost to Mazatlan’s economy. The federal government of Mexico is providing major incentives for the Marina Mazatlan development company and is investing millions of dollars into development and infrastructure. Private equity approaching $1 billion is being invested into the infrastructure of Marina Mazatlan. It is estimated that this area will create in excess of 50,000 new jobs for the metropolitan area of Mazatlan.
· Until 2005, traditional mortgage financing for Americans and Canadians was not available in Mazatlan. This has changed as developers and builders have come to Mazatlan and Marina Mazatlan. G.E. Capital and others are, for the first time, providing 20 year mortgage financing in Mazatlan. A host of additional mortgage companies are expected to be in Mazatlan in 2007. Stewart Title and First American Title Company are writing title policies for those individuals purchasing homes.
· Current real estate prices in Mazatlan are a fraction of what one would pay in Los Cabos or Puerto Vallarta, the two major vacation destinations nearest Mazatlan. That will not be the case in the near future. Real estate prices are rapidly rising as demand for prime locations is outstripping the available supply.
· Timing and location are the keys to capitalizing on this exploding real estate play. The most lucrative opportunity is to secure and develop unique oceanfront property.
· In 2006, condominium projects on the ocean front are as much as 40% pre-sold before the foundations are barely out of the ground. Demand is such that these projects are 100% sold out before completion.
· For the locals, Mazatlan’s economy is booming. The middle class is buying new cars and new homes. They are purchasing all the amenities that a growing economy has to offer. One senses a vibrant and friendly attitude that is pervasive throughout this beautiful city.
· Mazatlanites are proud of entering the world spotlight. As an example, the newly established, annual International marathon and triathlon attracts sports competitors from around the world.
Partnering With a Premier Mazatlan Developer Means
Greater Profit Opportunities
Ron Gollehon is in an enviable position to capitalize on real estate opportunities and to benefit from escalating real estate prices in Mazatlan. During the last several months, he developed a significant and unique business relationship with the developers of Isla Mazatlan and one of its principals, Jose Manuel Cristerna. Their company is building exclusive Isla Mazatlan homes, villas, condos, two boutique hotels, Gran Coral and Gran Coral Sur, and boat slips.
This relationship has allowed Ron to accelerate his pre-development activity in Mazatlan. Ron has access to a complete real estate development staff of architects, engineers and land planners, all using the latest technologies, which will greatly reduce the development time and “soft costs” associated with real estate development. Manuel’s staff of trained salespeople are pre-selling everything being built on Isla Mazatlan. Those same salespeople will be working for Ron in the oceanfront projects.
Ron is using the finest legal Notario in Mazatlan, Guilebaldo Flores. He also has put on retainer Fernando Hernandez Esquire, Guadalajara, who works with First American Title Company and Stewart Title. He oversees all of Ron’s property work in regards to Title Commitments and Policies.
Ron is building a home on Isla Mazatlan and is moving to Mazatlan to further secure real estate opportunities. In addition, he is using his real estate sales relationships in the United States to advance pre-sale and sales activities for the Mazatlan projects.
TREASURES AT EMERALD BAY
Ron has recently contracted to purchase one of the finer oceanfront properties in Emerald Bay. This Property, with over 1,000 feet of beach front, will be the setting for Treasures at Emerald Bay, a unique bungalow concept.
This 45,500 square meter (489,580 square feet or 11.24 acres) Property is the perfect setting for a resort concept that has not been introduced to Mazatlan.
Zoning in this area allows for a maximum of 4 stories. 4 story condominium buildings will ring the perimeter to achieve economic densities, but the main thrust of Treasures at Emerald Bay will be its unique Bungalows.
The following pictures are only a representation of what could be achieved on this magnificent Property. At this time, Ron has chosen Hiquera + Sanchez, an architectural design/build firm from Mexico City, to oversee the Project:
(Treasures at Emerald Bay property is ½ mile north
of the 5 Star Pueblo Bonito Emerald Bay timeshare project, which will include an 18 hole golf course across from the Treasures property)
OBJECTIVES AND INVESTMENT OPPORTUNITY
The primary objective is to secure the land. With the development and escalation of prices in Mazatlan, this prime Property will anchor/secure the initial investors’ money.
During the closing of the land, engineering and land planning will commence. At the same time, the Higuera + Sanchez architectural team will be creating the vision of Treasures at Emerald Bay.
Ron and the land investment group plan on Joint Venturing Treasures at Emerald Bay with an established development company in Mexico. Ron has identified such a group. One of its key principals, an American, is moving to Mazatlan to pursue this as well as other resort opportunities that Ron controls. Their Mexican real estate development company is one of the most significant US companies developing in Mexico.
It cannot be emphasized enough that the investors’ money will have the land as collateral. This is as secure an investment in Mexican real estate as one can get, as the Deed to the land will be held directly by a new Mexican corporation, Treasures Land Holdings S.A. de C.V. An American entity, Treasures Land Holdings LLC, is being formed, which is the US investment vehicle for this Project. Treasures Land Holdings LLC will own 85% and Grupo Summerlin S.A. de C.V., Ron’s company, will own 15% of Treasures Land Holdings S.A. de C.V.
It is anticipated that Treasures at Emerald Bay outer ring of 4 story condominium buildings will contain approximately 240,000 square feet of condominium space. Units will be divided among 800 square foot Junior Suites; 1,250 square foot 2 bedroom condominiums; 2,500 square foot Penthouses and 5,000 square foot Presidential Suites.
Within this outer boundary, which will be landscaped beautifully along the outer perimeter of the Property, there will be a series of Bungalows, as portrayed above in the pictures. The bungalows will average 1,000 – 1,500 square feet and it is estimated that there will be 20 – 30 very exclusive Bungalows in Treasures at Emerald Bay.
The Project will also encompass a lobby/dining/bar/nightclub concept.
Landscaping will be emphasized, as well as water features, to maximize the beauty of the Project.
The following is the Opportunity:
The Project contains 45,501 square meters. The Purchase Price is $160 per square meter = $7,280,160.
To be conservative, Ron and the investment group will initially use all equity for the land purchase. This equity will eventually be replaced, either wholly or partially, when rolled into a construction financing package, after proven pre-construction pre-sales.
3 INVESTMENT LEVELS
Investment of $250,000
Investor receives 10% per annum interest until payback.
Preferential Investor return equals 90% of profit.
Investor receives a 1,250 square foot condominium, free and clear, upon return of investment.
Investment of $500,000
Investor receives 10% per annum interest until payback.
Preferential Investor return equals 90% of profit.
Investor receives a 2,500 square foot Penthouse, free and clear, upon return of investment.
Investment of $1,000,000
Investor receives 10% per annum interest until payback.
Preferential Investor return equals 90% of profit.
Investor receives a 5,000 square foot Presidential Suite, free and clear, upon return of investment.