Portofino Rosarito Residential Resort Condominium Development
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Portofino Rosarito Residential Resort Condominium Development PLAYAS DE ROSARITO BAJA CALIFORNIA, MEXICO Association proposal for a turnkey development of a 100-unit condominium resort project south of Rosarito, Baja California, Mexico An invitation to participate as an investor, owner, or partner Total funding to be placed: $2,700,000 from private lenders $1,000,000 from developer and builder $300,000 from development group Presented by Baja Development Partners, LLC A development venture between Firm Residential & Baja Resort Advisors BAJA DEVELOPMENT PARTNERS… BUILDING THE AMERICAN DREAM IN MEXICO Portofino Rosarito Residential Resort A 100-Unit Condominium Project to be Developed South of Rosarito, Baja California To Our Private Lender Partners: We are pleased to announce a compelling development opportunity in Baja, California. The tremendous demand for resort housing in northern Baja California has been spurred in part by important new laws that allow foreign companies to develop real estate in Mexico. Firm Financial Corp., doing business as Firm Residential, has invited Baja Resort Advisors, LLC, a La Jolla-based resort development firm, to participate in the development a 100 unit luxury condominium project just north of world famous Puerto Nuevo. The project’s operational entity is Baja Development Partners, LLC, (BDP) a California Limited Liability Company. The principals of BDP combine considerable skills and experience in real estate marketing, finance and development. Chief among them is Gabriel V. Robles, president of Baja Resort Advisors. To his credit, Mr. Robles has over 180 residential, resort and hospitality developments in Mexico and his participation virtually assures a successful outcome. His current project, Ventana al Mar, a 611-acre, 2300-unit resort development north of Ensenada, Baja California, is considered the crown jewel of developments along the Baja “Gold Coast.” (www.ventanaalmar.com). The Rosarito-Ensenada corridor is among the fastest growing real estate markets in North America. Many beachfront condominiums along this Baja coastal stretch are experiencing 30% plus annual appreciation rivaling the meteoric growth seen recently in southern California. National media attention has only fueled the unprecedented investment activity in the area. As a result, virtually all major beachfront developments are sold out entirely before construction is completed. By combining an incredible location in a booming market with a proven developer, we are certain to attract a multitude of buyers to this stunning oceanfront residential resort. BDP is keenly aware that discriminating U.S. buyers demand institutional protections in order to feel confident and secure in foreign real estate transactions. To that end, we have contracted one of the largest U.S. title companies, Stewart Title of Houston, Texas, to guarantee clean title to the subject property. Furthermore, we are partnering with numerous U.S. lending institutions including Bank of Laredo, Collateral Mortgage, and a subsidiary of G.E Capital, WMC Direct, to provide long-term mortgages to U.S. buyers. We invite you to consider this unique opportunity to participate in the funding of this landmark development and capitalize on the booming Baja California market with an astute, seasoned team of professionals. Although the information contained herein should be sufficient to make an informed decision, additional resources are available upon request should you desire further information. We thank you for your interest and look forward to your participation. Should you have any questions, please feel free to contact us. Respectfully submitted, Baja Development Partners, LLC Gabriel V. Robles Brett C. Ward Jerome R. Cleland Baja Resort Advisors Firm Residential Firm Residential President President Vice-President Mark L. Allen Garth N. Ward, Esq. James B. Bogle Firm Residential Attorney at Law Firm Residential Vice-President Vice-President Portofino Rosarito Residential Resort Table of Contents Portofino Rosarito Residential Resort ..................................................................... 2 Financial Summary........................................................................................................ 4 Financing Strategy......................................................................................................... 5 Project Summary............................................................................................................ 6 Site Analysis and Area Description .......................................................................... 9 Subject Property............................................................................................................ 10 Infrastructure................................................................................................................. 10 Local Attractions & Entertainment............................................................................... 11 Climate.......................................................................................................................... 12 SITE PHOTOS, MAPS AND DOCUMENTATION ................................................... 13 Aerial Photograph of Project Site ................................................................................. 14 Location Maps .............................................................................................................. 15 Corredor 2000 ............................................................................................................... 16 Property Photographs.................................................................................................... 17 Plat Maps ...................................................................................................................... 19 Approval Letter for Development................................................................................. 20 Approval Letter for Development................................................................................. 21 OWNING PROPERTY IN MEXICO............................................................................. 23 Foreigner’s Right to Own ............................................................................................. 24 Fideicomiso................................................................................................................... 24 Title Insurance .............................................................................................................. 25 THE DEVELOPMENT TEAM....................................................................................... 26 Gabriel V. Robles.......................................................................................................... 27 Brett C. Ward................................................................................................................ 28 Jerome R. Cleland......................................................................................................... 29 Mark L. Allen................................................................................................................ 30 Garth N. Ward............................................................................................................... 31 Kevin Young................................................................................................................. 32 Professional Advisors and Consultants......................................................................... 33 EXHIBITS ........................................................................................................................ 34 Exhibit A: Frequently Asked Questions................................................................. 35 Exhibit B: Media Coverage ........................................................................................ 37 Exhibit C: Competitive Market Analysis ................................................................ 39 Presented by Firm Residential and Baja Resort Advsors. This is an unpublished document protected by Federal Copyright Laws. No unauthorized copying, adaptation, distribution or display is permitted. 3 Portofino Rosarito Residential Resort Financial Summary PORTOFINO RESORT SOURCES AND APPLICATIONS OF FUNDS SCHEDULE SOURCES AND APPLICATIONS Amount Investor Capital $2,700,000 Baja Development Partners, LLC Contribution 300,000 TOTAL INVESTMENT CAPITAL $3,000,000 REVENUES FROM SALES Avg. Price Unit $ Sales 70 Two (2) Bedroom Units $322,500 $22,575,000 20 Three (3) Bedroom Units $350,000 7,000,000 10 Penthouse Units $591,250 5,912,500 TOTAL REVENUES FROM SALES $35,487,500 EXPENSES Totals Land Acquisition $1,500,000 Closing Costs 200,000 Working Capital 250,000 Tax Adjustment 200,000 Architect and Engineer 3% 380,160 Permitting 200,000 Administration 2% 253,440 Legal/Accounting/Tax Planning 35,000 Sales and Marketing (define in doc) 9% 3,193,875 Construction* 12,672,000 Debt Service Reserve 300,000 Debt Service for Private Loans 30% 900,000 Construction Management 2% 253,440 Common Area Furniture 10,000 Contingencies 5% 633,600 TOTAL EXPENSES $20,981,515 NET PROFIT $14,505,985 * Builder to contribute $1,000,000 interest free loan towards construction costs. Presented by Firm Residential and Baja Resort Advsors. This is an unpublished document protected by Federal Copyright Laws. No unauthorized copying, adaptation, distribution or display is permitted. 4 Portofino Rosarito Residential Resort Financing Strategy Financing Goals Our target is