Altazor Condominiums

Altazor (aka Altazor Blue) condominiums is a niche project in a Mexican residencial, rather than tourist, area of Puerto Vallarta.

The project was originally supposed to include 12, 2-bedroom condos with terraces.

But with prices falling in Puerto Vallarta, the developer redesigned the building to add 4 additonal smaller units with no terraces.

The building structure has been completed and one or two condominiums completed and delivered. 8 of the 16 units have now been sold and those condominiums will likely be delivered in the next 90 days.

This is a unique project because owners are able to take full possession of their units while the remaining 8 units are for sale. All of the common elements are completed

Construction risk is low, but there is some risk that some units might never get completed.

Environmental risk is lower than average for the Pacific Coast.

Prices have been reduced at this project in the past year, and other than the top floor units, this building now has very attractive pricing. A brand new 2-bedroom unit with a terrace is available for under $200,000 which works out to about $140.00 per square foot. Other than the penthouse units, financial risk is lower than average.

Title risk for condominiums can be mitigated throught the purchase of title insurance. However, since parking units are assigned as part of the common elements and are not deeded, it is not possible to mitigate the risk that a claim on a parking space might be taken by another owner. In addition, the city has not yet indicated it will take possession of the road necessary to access parking in the building. Maintenance of this road is at issue.

This building is not in a traditional toursit rental area, but it is in a central location and has its own rooftop pool. We are of the opinion that this building has slightly better than average rental income opportunities.

Operational risk should be lower than average at this project.

Recommendation: Buy for select units on the 3rd, 4th and 5th floor. Pass on higher priced units including penthouses.