I’ve been working on my annual Real Estate Trends article for the next issue of Vallarta Lifestyles when I received the email alert about the Loreto Bay project. This was a very large project in Loreto that obtained a lot of coverage and from what I understand, sold a good number of homes. Wonder what’s happening to them? If anyone knows, please comment.
TSD Loreto Partners, S. en C. por A. de C.V. (the “Company”) regrets to inform its clients and stakeholders that, due to the challenging situation in the international real estate and financial markets, all operating and construction activities for Loreto Bay (the “Project”) will be suspended.
To assist in securing new equity funding and a long-term suitable buyer for the Project the Company hired Cushman & Wakefield. Several potential buyers and investors have visited the Project over the last few months, yet in the context of the current economic crisis and credit shortage, the Project has been unable to secure a buyer or new investor.
We regret to inform you that until new funds are secured, as of June 7th, 2009 all hospitality related operations will be suspended and as of June 8th, 2009 all construction related activities will be suspended.
Please note that all homeowners with a home under construction, and all other homeowners will receive further information as it becomes available. More information about this can be found here and here.
Which helped me with Vallarta Real Estate Trend #8: Market Convergence
When demand was at its peak, for secondary housing or real estate tourism in a warm-climate location, it brought into the market locations that would most likely not be seen as potential candidates for prospective purchasers. Developments were being announced in places such as Nicaragua and Honduras. Panama, Costa Rica and Argentina became “hot” markets. Within Mexico, Loreto, which for years had remained a stagnant market, all of a sudden had multiple developments, one with more than 6,000 homesites. Well, as we’ve seen in our local market, the buyers (those that are still out there!) are looking for something closer to the center of activity of the community. In the same way, we see people will be looking for something that closer proximity to their primary home, easier to reach, and with a large community (consisting primarily of other second-homeowners) they can actively participate within. This is good for Mexico, and for the traditional real estate tourism markets such as Puerto Vallarta. Its not so good for Honduras and Nicaragua, even the the Loreto’s out there. That 2,000 home development, the Loreto Bay Company, that shut down operations this.