Project
The Palmacia Project
la paz | baja california sur
Project
The Palmacia Project
la paz | baja california sur
Executive Summary.
The “wholesale discount” of a potential bulk sale, adding the final engineering and environmental approvals complete with base infrastructure, is estimated at $150M USD for the total land area, with a potential fully developed value of $4+ billion USD (2023 dollars). It is anticipated the total build out of the project to completion is 20 to 30 years. If not a bulk sale, development partners or investors could move the project forward with a Phase 1 kick off that could include access, infrastructure, phase 1 of the hotel, sales center, beach club, some model homes and potentially a phased marina build.
La Paz
LA PAZ.
Vacationers and retirees alike are drawn to the area to relax and enjoy the beautiful outdoors. The La Paz area provides unlimited recreational opportunities including: marinas, golf course communities, excellent dining and nightlife, access to best fishing in all of Baja, beautiful white sand beaches, recreational boating and diving, marine ecology, desert tours, and shopping.
La Paz
LA PAZ.
Vacationers and retirees alike are drawn to the area to relax and enjoy the beautiful outdoors. The La Paz area provides unlimited recreational opportunities including: marinas, golf course communities, excellent dining and nightlife, access to best fishing in all of Baja, beautiful white sand beaches, recreational boating and diving, marine ecology, desert tours, and shopping.
Property Location.
The City.
La Paz is the capital city of the Mexican state of Baja California Sur and an important regional commercial center. La Paz’s population has greatly increased from the 2000 census and now stands at approximately 350,000 people. This growth is largely because the City enjoys one of the highest income per capita and highest quality of life in Mexico.
In addition to its recreational opportunities, La Paz has a substantial offering of general services with five hospitals, five universities, a new 15-plex movie theater complex that offers first run movies in English, auto sales and repair, food markets, personal services, building supplies and pet care.
Transportation.
La Paz is served from over 50 US and Canadian cities to La Paz International Airport (LAP) and San Jose Del Cabo (SJD, just 100 miles to the south). Airlines include Alaska, Delta, United, US Airways, InterJet, Southwest, and Aeromexico with additional business hops by Viva and Volaris.
Developer
Developer.
Dan Shore owns and operates Shore Management & Development. Dan set out to aid small and large clients, (owners, tenants, and developers) with property envelopment, project management, and facility planning throughout the San Francisco Bay Area. Within a few years, Shore Associates developed a reputation for saving time and money, providing project leadership, and getting results. Based on commitment to client goals, Dan’s leadership role has extended to projects throughout California, across the United States, and all over the world.
Developer
Developer.
Dan Shore owns and operates Shore Management & Development. Dan set out to aid small and large clients, (owners, tenants, and developers) with property envelopment, project management, and facility planning throughout the San Francisco Bay Area. Within a few years, Shore Associates developed a reputation for saving time and money, providing project leadership, and getting results. Based on commitment to client goals, Dan’s leadership role has extended to projects throughout California, across the United States, and all over the world.
Marketing
Marketing.
Promotion for this project is premature at this time,but will be conducted through a sophisticated marketing program starting with a travel and tour plan focusing on eco-tourism, fishing, golf and recreational users in Mexico, Canada, and USA. Tours and overnight promotions will be conducted utilizing an on-site hotel facility and sales center.
Marketing
Marketing.
Promotion for this project is premature at this time,but will be conducted through a sophisticated marketing program starting with a travel and tour plan focusing on eco-tourism, fishing, golf and recreational users in Mexico, Canada, and USA. Tours and overnight promotions will be conducted utilizing an on-site hotel facility and sales center.
Opportunities.
Golf.
Although there are a few golf properties in the La Paz area, Palmacia is scheduled to be the first destination resort of this scale. There is limited future competition in the immediate area due to the recently passed Balandra Natural Protected area and only minor discussions of similar golf and resort projects at the tip of La Paz, another 8 to 12 miles further south. Regional competition is located in the resort areas of San Jose Del Cabo and Cabo San Lucas where equivalent properties sell for $2 million to over $12 million for upscale single family homes with notable courses at Querencia, The One and Only, Cabo del Sol, El Dorado, and the Four Seasons.
Business Climate.
Business conditions throughout central Mexico and southern Baja remain strong and conducive to real estate development. USA companies impacted by the economic slowdown have the majority of their Mexican manufacturing locations close to the border, and in those regions, the local Mexican economy has been affected. Outside of the ‘veil’ of the USA influence, the Mexican economy remains strong and growing. Mexico leads Latin America and is now the 12thlargest economy in the world. Even through the “drug wars”, Mexico remains one of the safest and financially stable places to live or visit.
Exit Strategy
Exit Strategy.
Exit Strategy
Exit Strategy.
This project as many levels or steps of development based on the Owner’s vision and the availability to raise investment dollars and maintain those investors with equity financing.
Option 1 is a simple bulk sale “as-is” with the current development rights in place.
Option 2 is to take on an equity partner make minor access, engineering, and environmental as discussed, and target market any or all of the neighborhoods. The property would be parceled by that time, so the plan could separate the individual projects and sell, hold or build per the investment goals.
Option 3 is to raise additional money for the marina, rough golf layout and proceed with the development phases and infrastructure, while holding or selling other parcels.
Option 4 is to get hotel and golf management commitments and completely develop the hotel and all project infrastructure then sell or joint venture the remaining neighborhoods and parcels.
Option 5 is to develop the entire project with a combination of debt and equity financing over the next 20+ years.