Villas Quinta Luna

Villas Quinta Luna is the type of project we expect to be seeing more of in the next 2-3 years in Puerto Vallarta. The project is only 6 units and in an already developed area, high in the hills in downtown Puerto Vallarta. From concept to completion, this project took just over one year (in contrast The Grand Venetian project is now 4 years old and Tower 1 is not yet complete).

The project will be delivered within the next few days. Total infrastrucutre in the immediate area is 100% complete.

This is little environmental risk relative to other projects on the west coast.

We expect operating costs to be lower than average. Most importantly, owners will have considerable leeway with respect to how they operate their units. Units come with infinity pools and air-conditioning, but the location of the project will limit the need for air conditioning. And the pools are small, and easily maintained. There is no need for on site management, conceirge etc.

This building will have high potential for rental income. The location is excellent. The product is of high quality and has the desired features of the other products we see in Puerto Vallarta that generate considerable rental interest.

Since developments have this nature are few and far between presently in Puerto Vallarta, units are commending premium prices. Three of the six units are still available from $550,000 to $840,000. Given that the developer expected to sell out prior to completion we expect price reductions. In the immediate area there are other buildings such as Quinta Luna coming on-line and we expect to see better value pricing in those projects.

Recommedation: Pass until additional inventory is available in the immediate area.