BajaNews - 12-15-2005 at 06:50 AM
http://www.globest.com/news/433_433/global/141079-1.html
Baja Peninsula Heats Up With Three Resort Sales
By Brian K. Miller
Last updated: December 14, 2005 07:58am
CABO SAN LUCAS, MEXICO-Two joint ventures and a public company have acquired resorts on the southern Baja Peninsula. Loreto Bay Co. and Citigroup
Property Investors acquired the 155-room Camino Real Resort near Baja's historic fishing village of Loreto. In Cabo San Lucas, Koll Co. and Starwood
Capital Group Global acquired the 22-acre oceanfront Hacienda Hotel property, and publicly held Sunterra Corp. acquired the Misiones del Cabo Hotel
and Resort property.
Scottsdale, AZ-based Loreto Bay and Citigroup acquired their property for $15.1 million from Fonatur, Mexico?s tourism development agency. The
530,000-sf resort, which opened in 2002, sits on a secluded beach on the Sea of Cortes. Moreover, its sits adjacent to the Villages of Loreto Bay, a
resort community Loreto Bay is developing that calls for some 6,000 homes.
The hotel has been renamed Inn at Loretto Bay. Through a transition agreement with Fonatur, current hotel management will remain in place until Jan.
1. The venture is confirming plans for room renovation, expansion of the common areas and investment in sustainability measures.
The Loreto region was named one of the top 10 tourism destinations in Mexico by National Geographic Traveler this year. Loreto International Airport
has three weekly non-stop flights from Los Angeles on Alaska Airlines, which has increased tourism steadily over the last couple of years; the
destination also is served by AeroMexico and several other Mexican airlines.
Sunterra Corp acquired the Misiones del Cabo Hotel and Resort for $11 million. The resort is about three miles from Downtown Cabo San Lucas. The Las
Vegas-based vacation ownership company says it plans to invest a total of $50 million to develop additional units and then sell them off for gross
proceeds of $200 million.
A source at Sunterra says the company acquired the management contract for the existing units as well as the excess land for development. Existing
on-site amenities include pools with swim-up bars, whirlpool spas, tennis courts, a poolside bar and grill, and two beaches.
Without revealing the number of units it is planning, Sunterra says the first two phases of development will comprise two thirds of the total number
of units, with completion slated for sometime in 2006. The units in the third and final phase will have oceanfront views of Cabo San Lucas and the
famous arch at "Lands End."
Newport Beach, CA-based Koll and Greenwich, CT-based Starwood Capital Group recently acquired the 22-acre oceanfront Hacienda Hotel property in Cabo.
The JV?s redevelopment plans call for 203 for-sale condominiums and 30 single-family homes.
The project will be developed in four phases. Delivery of the first units is expected in late 2006 or early 2007. The total sell out is estimated at
around $400 million.
Koll?s acquisition and development manager Bill Larkin told GlobeSt.com in November that the bulk of the units will be in a series of low-rise
buildings up to six stories. In addition, there will be 30 single-family beachfront homes. The development will offer direct access to the Cabo San
Lucas Marina and include a beach club with full restaurant, infinity pools, spa, workout facilities and lounge for the use of residents.
Larkin says that the design and entitlement processes are under way and demolition of the existing hotel on the property will take place in late
December. The size of each of the phases will be determined in January based on the amount of interest shown by prospective buyers.
The land for the development was sold to the JV by the Parr family of Cabo San Lucas. Larkin declined to reveal the purchase price or the expected
development cost, citing confidentiality agreements.
capt. mike - 12-15-2005 at 07:52 AM
i remember when it was called "Eden" and featured naked volleyball and a nudie beach!!
backninedan - 12-15-2005 at 08:34 AM
Mike,
"Eden" is now Whales Inn and is located to the north of Camino Real. Who knows, maybe Lorteto Bay will buy it too.
resorts
tehag - 12-15-2005 at 11:19 AM
Rumor has Whale's Inn going condo soon. RUMOR.
...starting at $750,000
Juan del Rio - 1-4-2006 at 09:56 PM
Have you seen the website for the "New" Hacienda Cabo San Lucas Beach Club? The players in this game are huge...Koll Company/Newport Beach, Villas del
Mar/Palmilla and Barry Sternlicht/Starwood Capital Group(he put the Sheraton/Westin/"W"/St. Regis/etc. together under one brand called, "Starwood
Hotels and Resorts") You wonder what the price for a Margarita will be at this place. For a giggle last February, Carlos Fiesta (of Baja Expo.com) and
I went to the Palmilla for one Margarita before we went to dinner at "Hangman's" in SJDC. We had a bet on the price for the cost of the Margarita's. I
bet $8.00 each and Carlos bet $10.00 each. Want to know what we paid? Visit this site first, then I'll tell you....Hacienda Cabo San Lucas Beach Club
come on....
Juan del Rio - 1-4-2006 at 09:58 PM
Did you really visit the website??? You really have too before I let you know....
Ok, I'll let you know....
Juan del Rio - 1-4-2006 at 10:02 PM
$18.00 per Margarita! You wonder what the new cost will be. Any guesses from the Board? Oh by the way, here is the same area in 1951 taken by Howard
Gulick. Wonder what the price was for a Margarita back then...gosh did they even have ice in Cabo in 1951???
No one won the bet...
Juan del Rio - 1-4-2006 at 10:08 PM
...it was so outrageous we split the cost and went to Hangman's, had great dollar tacos and brought our own Pacifico's. Ahhh, Baja!
David K - 1-4-2006 at 10:38 PM
"The hotel has been renamed Inn at Loretto Bay" 
I hope they consult with 'Baja Spell Checker' before making the signs or printing stationary!!!
bajajudy - 1-5-2006 at 07:32 AM
Juan
The Hangman rocks, eh?
We went to the Palmilla one night for drinks and decided to have a bottle of wine. The cheapest bottle on the list was $75 and it was a cheap
Sirah...Costco $5. We then decided that maybe a beer would be good...$6.
The Hacienda was one of the most charming hotels I have ever stayed in. I have a feeling that charming will not be a word to describe the new resort.
Ah, progress......aargh