The Baja Citizen

Development News

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What Kind of Real Estate Was Sold in 2012 in La Paz and for How Much?

January 24, 2013

What Kind of Real Estate Was Sold in 2012 and for How Much?
By Susan Fogel
The quick answer: Not a whole lot and certainly not at top dollar!
According to the Multiple Listing Service (MLS) figures, 73 units were sold in 2012 in La Paz. That includes 21 detached homes, 22 condos, and 30 building lots. By comparison, only 18 units were sold in 2011. Of the four detached homes that sold in 2011, only one sold for more than $500,000. In 2012, two homes and one condo sold for more than $500,000. Here are some figures for the properties that sold last year:

Price Range (USD) Houses Condos Lots
0-     30 k 0 0 13
0-     40 k 1 0 5
0-     50 k 1 0 2
51-100 k 7 2 2
101-160 k 5 7 5
161-200 k 4 7 0
201-250 k 0 2 2
251-300 k 0 3 1
301-400 k 1 0 0
500 k+ 2 1 0

As of 31 December 2012, there were 195 homes, 94 condos, and 243 lots considered as active listings. These are listings currently on the MLS, waiting for a buyer. Of these 532 properties, only 73 sold last year. These are not exciting numbers, but real estate sales in 2012 were four times the sales of 2011. That is good; it means there is movement in the market. So far, 2013 is looking up, with expectations of more activity. But, sellers must be cognizant that sales are slim, and what is selling is mostly low-priced properties. When a seller says to their agent that they will wait for their price, consider this: Based on 2012 figures, if no additional houses came on the market and prices remain the same, it would take 103 months to sell all of the houses currently listed, lot owners may wait 126 months, and condo owners may wait 24 months. But more properties are coming on the market every day, so the wait will probably get longer.
The average days on the market by year end 2012 ranged from 491 days for condos, 297 days for houses and 188 days for lots. Want to sell your house fast? Take a deep breath, set your emotions aside, and cut your price. By having your home on the MLS, you have worldwide exposure and can be confident that the member agent you choose to work with subscribes to a higher standard of practice. Happy New Year, let’s sell some houses!

: Development News, Real Estate News
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Is Bay of Dreams Still a Dream?

January 3, 2013

By Carol Dyer
The thing about dreams is that eventually we have to wake up.   When they are pleasant, we are sorry to let them go.  When they are nightmares, we are relieved.   There are many expressions related to dreams:  a pipe dream, a dream come true, your worst nightmare, day dreamer, dream on, living the dream, etc.
Take Ensenada De Los Muertos.   When Steve Games, co-founder of Prudential California Realty, first sailed into this beautiful bay to seek refuge from heavy seas, he thought, “Wow!  This is where I want to be.”   He began buying up property, bringing in investors, and eventually built Gran Sueño, a 25 acre estate complete with 9 hole golf course, equestrian center, tennis courts, several casitas, a restaurant with multiple tracks of model trains, and miles of beautiful white sandy beach.  Steve and his family lived the dream for a number of years here at “The Bay” as it is commonly referred to by owners and staff.  To the locals, the fishermen, and the cruisers, it will always be known as Muertos.  But, if you want to entice wealthy gringos to build custom, luxury homes on the site, Bay of the Dead doesn’t quite project the proper image.  Thus, the development is officially known as The Bay of Dreams.
Except for Gran Sueño and the properties sold or traded out, the development is now owned by PCS Development of Los Angeles.   With a successful record of accomplishments in property development,  Joe Fryzer and Paul Jennings, owners of PCS Development, saw an opportunity to be on the cutting edge of this luxury development on the Sea of Cortez.  That was in 2005.  Over the course of the next 7 years, $73 million was spent on the infrastructure, and PCS eventually acquired the entire project.   Some of that investment went to building an 18 hole golf course designed by acclaimed architect Tom Doak.   Doak’s approach to golf course design is to work within the natural features of the land, not obliterate them to accommodate a fairway or hole.  With the golf course comes the need for water.  PCS Development is serious about being stewards of the land.  Among other things that means minimizing the use of ground water vital to the community at large.  Although there is a 9 million gallon reservoir, the major source of fresh water comes from a functioning water treatment plant.
For the principals involved, the dream to develop this pristine 4,000+ acre site is fading.  The housing market downturn and the U.S. and world economic crises brought the project to a virtual standstill approximately 2 ½ years ago.  At its height, the Bay employed in excess of 130 workers, most of whom worked to clear vegetation, road construction, golf course construction, and maintenance.  Now there are fewer than 60 employees.  These workers provide security, maintain the golf greens and tees (the fairways were allowed to dry out), maintain equipment, operate the restaurant, maintain roads, and provide administrative services such as accounting, human resources, and IT.
The project is for sale and has been for some time.  Land Advisors Resort Solutions is handling the offering.  It includes approximately 4,000 acres; all infrastructure, including off site pipeline, 9 million gallon reservoir, a fully permitted and operating desalination plant with wells to support 75,000 gpd production; all construction/maintenance equipment and vehicle fleet; fully equipped and furnished 3,000 sq. ft. restaurant; the golf course; onsite office and housing trailers; and more.  Complete details may be found at www.landadvisors.com.  If all the t’s are crossed and the i’s dotted, it is possible the Bay, including the Gran Sueño 25 acre resort, will come under new ownership by the end of the year.  When that happens the Bay will no doubt realize a resurgence and begin a new era of development.
The Bay is well worth a visit even if it is just for the view.  Drive south from La Paz on highway 286 towards the small town of Los Planes.  Follow the road until it ends at the water’s edge, about 45 miles from La Paz.   Mosey on into the restaurant and have a taco and maybe a margarita.  Sit back and take in the pristine white sandy beach as you watch the pelicans drive for fish or squabble over the fishermen’s discards.  Afterwards, leave the restaurant to the left and walk along what is called the “Spanish Dock”.  There are remnants of buildings and stone steps leading to the bay.  It is thought these were built during the Spanish settlement in 1535 (the name of the restaurant).  Most likely the docks were built for loading minerals from the mines at El Triunfo and San Antonio.
At its height, The Bay of Dream lots were offered from a range of $300,000 to $7,000,000.  One such lot sold for $1,820,000 in 2007.  That last lot sold was in 2009.  Now you can purchase a lot on which to build your own dream home for as little as $200,000.  If you buy, remember me.  I get a referral fee.
Carol Dyer is the owner of Casa Tuscany Inn and a regular contributor to the Baja Citizen. Carol is grateful to Paul Jennings and PCS Development for the opportunity to work for them.  It is what brought Carol to La Paz in the first place.
: Business News, Development News
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CostaBaja Resort, Your Neighborhood Gathering Place

November 19, 2012

By Susan Fogel
Just like all of you, my Beloved and I have our favorite places to go for a coffee, a quick meal, a lazy weekend lunch, or a Saturday breakfast with friends. We have particular restaurants for special occasions. And now, we have re-discovered Costa Baja Resort and Spa.
We know it has been there for years and we have enjoyed dinners at many of the restaurants. We send all of our guests to the shell museum. Until last month, we considered the hotel a place for tourists. Were we ever wrong!
Costa Baja Resort is luxurious, only ten minutes from the center of town and a world apart. Costa Baja is a place that locals, Mexican and expats alike, frequent. Says Monica Maldonado, Director of Sales at the Resort. “We want the resort to be a part of La Paz. We hope that locals will come here for dinner, weddings, and other events. We are flexible and can design a dinner for 4 or a group of 100. We can arrange a special spa treatment. Just let us know how we may serve you.”
We were invited to spend the weekend as guests of the hotel, have dinner at Steinbeck’s, breakfast at Mosaic, and indulge ourselves at the Espiritu Spa. How could we say no?
A few weeks before our weekend, we were invited to join Monica and her husband, Guillermo, for a tasting and wine pairing dinner at Steinbeck’s. We were treated to a variety of items from the menu with a wine selected by Engelbert, the sommelier. What a thrill to see four white-coated waiters marching to our table with silver-domed dishes, then place in front of us all at once. Engelbert described each wine, and answered our questions. The food was tasty, finely prepared, and beautifully presented.
Steinbeck’s is the main restaurant in the hotel. It feels like a restaurant on Cannery Row in Monterey, California—casually elegant, comfortable, and stylish. All wait staff speak English and are attentive without being overbearing. I dropped my fork, but before I could reach down to retrieve it, a waiter appeared with a clean fork. We never had to ask for water, or to refill out wine glasses. The catch-of-the-day, cabrilla, was perfectly cooked, each of us had a different sauce, and our vegetable side dishes were served family style. A nice touch. Sharing and passing dishes adds to conviviality. The cabrilla special was $220 pesos.
After dinner, we checked into our room. We had left our bags with the concierge, our bags were in the room, and the bed turned back. The ultra-modern room, with the large walk-in glass shower, made our “minimalist modern decor” hearts sing. Sinking into a high, soft, king-sized bed with crisp white sheets after a lot of food and wine was sheer bliss.
Which came first, the mosaic art piece wall or the restaurant name? The next morning we breakfasted at Mosaic. We gave our room number as we walked in, and from that moment on, we were addressed by name. The buffet section of hot and cold food, fruit, juice, and cereals was a true groaning board. My Beloved was skeptical about the scrambled eggs in the warming pan, but he tried them anyway. He said the eggs tasted freshly-cooked and fluffy, the best he had ever had. And my decaf espresso cortado was done to perfection.
We had some time before we could have our spa treatment. We were advised to wait two hours between breakfast and our treatments. We lounged near the huge and sparkling pool, listened to light jazz on the sound system, and felt truly relaxed. “I feel like I am on vacation,” I said. “Me too, silly,” said my Beloved.
And then, on to the Espiritu Spa. I still get goose bumps thinking about this experience. Privacy, luxury, and tranquility, those are the keywords I use to describe this spa. No one can just walk in; it takes a special key by the concierge to allow the elevator to descend to the spa floor. If Costa Baja Resort is a world apart, Espiritu Spa is a separate universe.
The lights are dim, the hallways lined with candle-lit lanterns. We were given lovely, soft white robes and escorted to our massage rooms. No couples massage for us, although couples massages are available, I am too selfish to share! Entering the massage room immediately relaxed me. There were candles sprinkled around the room, even near the foot basin. Yes, before I lay on the table, I sat for a warm foot bath. I had the “Damiana Body and Spirit Ritual”. One hundred minutes of relaxing and revitalizing massage, including a deep and relaxing face and scalp massage.
Gloria Guerra, the spa manager and designer of the rituals, says her mission is to pamper her guests with relaxing and re-energizing massages. A 17-year veteran of massage therapy, she combined her favorite techniques and some she developed just for Espiritu Spa. She says the goal is to first use relax reflexology on the feet and back, then release stress and negative emotions and then be rejuvenated.
After our massages, we were met in the hall by our massage therapists. A heated neck cushion was draped on our shoulders and we were escorted to a sitting area to drink water, eat delicious cookies, and drink tea. There was no detail left to chance. Fresh flowers, scented cloths for our face, soft music, everything, was five-star.
As we were sipping our tea, my Beloved said “We’re coming back for your birthday.” Isn’t he smart? But my Beloved, Gloria has prescribed this treatment: three massages a year. One of each of her signature Ritual Therapies. These are the Damiana Body and Spirit Ritual (100 minutes, US$150), Espiritu Ritual (90 minutes, US$155), and the Neuro Vital Therapy (90 minutes, US$155). You can reach the Espiritu Spa at 123-6018. There is always an English speaker on duty.
Monica Maldonado says,” Please contact the Resort to design the treatment that you would like.” sales@costabajaresort.com.
Susan Fogel is the broker/owner of www.prestigepropertygrouplapaz.com
: Business News, Development News
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NEVER HEARD OF THE MID-PACIFIC COAST?

April 15, 2012

Linda Jackson
East Cape, Los Cabos, or Pacific Corridor are names of real places we know – the names locate the places exactly.  Yet, there is a stretch of the Pacific Coast of Baja California Sur that doesn’t have an agreed upon, commonly used name. At least not one that we know of – so we have taken to calling it the Mid-Pacific Coast.  The area in question extends from north of Todos Santos for some 80 miles up the coast to Bahia Magdalena.  This is a beautiful and off-the-beaten-track sort of place where, until recently, change has come slowly.  The coast is sparsely populated with a few villages whose inhabitants are either fishermen or agricultural workers.  There are also a number of old ranches scattered throughout the area whose inhabitants raise cattle, goats, and sheep and make cheese.
The Mid-Pacific Coast is not a mountainous area, but rather a region of hills and mesas (actually old sea bed) and miles and miles of cardon/cactus forest.  The coast itself alternates between dramatic cliffs that drop off to the ocean and other more inviting and gently sloping dunes and terrain that lead down to the sea.
People ask us: the peninsula is only 26 miles wide from La Paz to the mid-Pacific – surely the climates are the same?  In fact, the Mid-Pacific Coast has a comfortable year-round climate where the summer temps are easily 10 to 15 degrees cooler than La Paz and it’s far less humid with refreshing sea breezes to keep it that way. What a world of difference from La Paz where the brutal heat and humidity drive so many people to escape during the summer months!
To get there, drive out any of the roads branching off of the Transpeninsular Highway north of La Paz at kilometers 35, 38, 55, or 79 to name a few.  The road at Km 79 will lead you to Punta Conejo, a popular spot with surfers.  The other roads will take you to inland villages as well as out to some old ranch properties along the coast such as La Aguja, El Progresso and Los Inocentes.  This is the narrowest part of the Baja peninsula, and the coast is easily accessible.
During the real estate boom years before 2008, many properties along the Mid-Pacific Coast were bought up by developers, wanting to create seaside communities or by others wanting to simply have a small place to call home.  Then the housing crisis hit, the market disappeared, and many of these grand plans were postponed or dropped altogether.   However, there are a couple of survivors.  One of them is Playas Pacificas which is a small development located on Rancho La Aguja.
The Canadian/Mexican owner discovered this old ranch property back in 1998 during a camping and exploring trip in his trusty poptop camper and immediately became smitten with the place.  And when he discovered that it was for sale, well, as they say, the rest is history.
La Aguja is a beautiful ranch nestled in a coastal river valley on the Mid-Pacific Coast.  The locals tell us that it was once famous for the strawberries and melons grown here.  From the river valley floor, the land rises up to a steep mesa towards the south.  And to the north there are elevated plains that slope gently from east to west down to the Pacific.  On these elevated plains, you will find Playas Pacificas, a coastal residential community in a peaceful rural environment.
For those weary of urban life, you would do well to come and see what is being created here.  This small development offers very large secure, serviced homesites in a spectacular setting just steps away from the one consistently safe, swimmable beach in the region.  In the planning of Playas Pacificas, great attention has been paid to preserving the natural landscape and beauty of the area; you will find large areas of reserved green, natural zones which will remain untouched. These natural zones along with the large homesites mentioned above create a low-density environment with lots of open space.  You will not be elbow-to-elbow with your neighbor here!
What can you do at Playas Pacificas?  The activities are many for adults and children alike: swimming, boogie-boarding, surfing, fishing, hiking, walking on the beach, bird-watching, exploring the back country on ATV or motorcycle, and star gazing.  The night sky here is amazing (no city glare) and there is something primeval in the sight of the full moon rising over the mesa.  Or simply relax and read a book, then watch the sunset as it turns the sky all shades of red from palest pink to vibrant fuchsia.
You get to Playas Pacificas by turning off the highway at Km 55 and following the road straight out to the coast.  At the time of this writing, the road is dirt, but it is part of a new government paving project which has just started, so the dirt road will be a thing of the past in the not too distant future.
Find out more about Playas Pacificas at www.playaspacificas.com.
Playas Pacificas is listed with/represented by Linda Neil Properties (www.lindaneil.com). Contact Jim Donahoe at jim@lindaneil.com or call (612) 140-1054.
: Development News
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Update on Fantasy Island!

April 10, 2012

Susan Fogel
The lovely development on El Mogote, Paraiso del Mar, has had a troubled adolescence. Many people bought in early at the attractive “Founder” price. And they waited four years for construction to start, then to be completed, and finally to receive their finished house or condo.
The golf course opened. The 19th Hole, the little restaurant opened to the public. Anyone could wait at the dock at Vista Coral and catch the electric boat and have lunch there. Uniformed staff met the boat and whisked the visitors off to their destinations on silent electric carts. It really earned its nickname of Fantasy Island!
Well, OK, I named it that, but when I called friends and asked if they would like to meet me for lunch at Fantasy Island, they knew what I was talking about.
Between the environmental complaints, and the developer’s mismanagement, new construction has been shut down. For awhile, water was being trucked in at great expense. The homeowners rallied and dug deep into their own pockets to pay the staff, keep the desalination plant working and the boats running. The golf course looked a little rough for a time. Because of the courage and intelligence of the homeowners, Paraiso del Mar is a functioning, safe, and lovely place to live.
CapSource, the main lender on the project, has stepped up and paid almost $300,000 in back homeowner’s dues. The HOA is solvent; it has control of the water, grounds, staff, and boats. They have shut down the cute, but costly waiting area on the Vista Coral promenade. The boats still run, but you won’t be sitting in expensive and cushy patio furniture under an umbrella while you wait for a boat. “This will change once the construction re-starts,” says my source.
Since the beginning, and independent of any careless actions by the developer, the residents have been recycling their trash, cleaning the beach of flotsam and the trash left by beachgoers. They have a turtle conservation program going and a new hatching is expected in the next 90 days. Holiday rentals have never stopped. Now owners are listing their properties for sale.
Two concerns are in discussions to buy the property and finish the remaining condo towers and perhaps build more homes. If you ever dreamed of owning an island home, Paraiso del Mar is the closest thing.
No matter what you think about whether Paraiso del Mar should have ever been built, it is there. The best outcome is that a reputable buyer takes over, completes the project, and protects the environment. That is what the homeowners are working on.
And let us hope that the new builder will respect the fragile ecosystem of El Mogote and the inner bay. If the present owners have anything to do with the environment, it will be top priority. And take heed, developers. Get your permits in order before you move one grain of sand.
Susan Fogel Is the broker/owner of www.prestigepropertygrouplapaz.com
: Development News, Local News