-by La Huerita
It's no secret that the collapse of the economy in the USA has drastically affected the real estate market in Rocky Point. Resale listings (especially condo resales) have increased exponentially in the last year, prices are still dropping, and several planned developments have been put on hold-- often leaving buyers wondering if they'll ever see their deposits again. It's not really the best of times to be a real estate agent in Rocky Point, Mexico.
One potential bright spot in all the mess is the Tessoro at Las Conchas project, a high-end condo development located at the end of Las Conchas on a peninsula surrounded by the Morua Estuary. Construction there has continued throughout the turmoil of the last year or so. In addition to the major construction of the condo building, for instance, the large main pool has been poured and it is now being tiled with Venetian tiles. In addition, the ocean front outdoor bar and grill building is nearly complete.
On March 20, 2009 Tessoro unveiled its fully-furnished Diamond model inside the phase one building. The Diamond Residence is, in the words of the developers, "an epic end unit that is the single finest residence in all of Puerto Peñasco and whose owners will have unchallenged boasting rights." Well, you'd hardly expect less exuberance from the developers, would you? The questions in my mind, not knowing the pricing for the units at Tessoro, is who is actually going to buy, considering the current economy, and have prices come down at Tessoro as they have everywhere else? How are sales going, anyway?
Conceived during the height of the BIG BUBBLE, like most of the other developments in Puerto Penasco, Tessoro was conceived as an ultra-upscale luxury condo development reachable by what is now a shrinking pool of people who can either afford it or who are willing to spend in the current market conditions. So I'd imagine that the units are just a mite harder to sell than they used to be. That's just my guess, though; I could be wrong. I did find a listing online by one owner who purchased pre-construction in 2006 and is now offering UNIT #1, the Diamond floorplan, ground floor right at the beach, 3 bedroom, 3.5 baths, 3260 total square feet-- for a mere $1.25 million. That person asserts that Penthouse units are going for $2 million+. Hmmmm.
But the main point here is that construction has continued unabated and the company is delivering on its promises-- as is clearly obvious on the Tessoro website's construction status page.
And those promises are pretty deluxe. Built by AR+K Arquitectos out of Mexico City, the full-ownership condominium residences all offer ocean-front terraces and rear balconies overlooking the Morua Estuary and Pinacate Volcano. All residences offer private, outdoor spa tubs overlooking the Sea of Cortez. And all interiors are designed with accents of river stone, alder wood, granite and marble. I must say their promotional video is one of the best I've seen.
Claimed Tessoro exclusives:
Tessoro fronts over 600 feet of beach near the mouth of the Morua Estuary and there has been considerable controversy about possible damage caused by such a project to the delicate ecology of the area. CEDO, the Intercultural Center for the Study of Deserts and Oceans, for instance, listed Tessoro as an "Irresponsible Project" in 2006 due in part to its impact on a colony of a protected species of bird, the Least Tern, (Sternula antillarum).
At least on the surface Tessoro appears to be more financially secure than many planned projects in Rocky Point – an increasingly important consideration. So we'll see how things go as the first phase of Tessoro nears completion.
It's always possible, of course, that Phase One could turn out to be Phase Final, depending on the economy and other factors such as debate about the ecology of the area, water availability and so forth. Time will tell.
About Beach Buzz: Not necessarily the news, this is a place for information, opinion, speculation, gossip, tips and other good stuff about Rocky Point, and Mexico in general. If you have something you'd like to share, I'd like to hear from you!
Contact me, La Huerita, at firstname.lastname@example.org
Monday, April 20, 2009
-by La Huerita