Villas Colina Environmental Risk - Amapas, Puerto Vallarta

The following is reprinted from the Vallarta Tribune:

Last Tuesday afternoon, April 17th, a section of four apartments located at 174 and 178 Hortensia in the hillside Amapas district on the south side of town suffered severe structural damage as it collapsed, tumbling down the hillside to the road below. The buildings are part of Tropicasa Realties’ Villas Colina projects. Thankfully, no one was injured and the only damages were material. Residents were evacuated and the buildings were sealed off pending structural studies. According to the information gathered by reporters of the Tribuna de la Bahía, the construction permits for the second phase of the project were issued by the previous administration headed by Mayor Gustavo Villaseñor, whose Director of Urban Planning was Carlos Manzano. Some claimed that the collapse was caused by the heavy machinery being used for that second phase.When other sections of the hillside a little further south on Hortensia Street came sliding down last July 24th, 2006, Sr. Manzano stated that "everything was in order… there was nothing to worry about."The condo / apartments that were damaged on the 17th were valued between U.S. $500K and $800K.

Recommendation: Pass. Existing purchasers should contact an attorney to determine any rights and obligations. As a result of the environmental risk, financing, either for purchase to to secure access to equity will likely not be possible with this project. All forms of insurance are also at risk. Resales will likely require full disclosure of the environmental risk and significantly reduce reselling price.