Baja Developers banking on "escalera nautica" (The Nautical Ladder) to boost land sales

The Escalera Nautica is a marina network that will link 20 ports between four Mexican states that border on the Sea of Cortez: Baja California, Baja California Sur, Sonora and Sinaloa. The region's principal boating market is the Southwestern United States with some 1,650,00 registered sea craft of which only 8,000 or 2% of the potential market presently sail into the Sea of Cortez.

The Mexican federal government and the states, involved in developing the project, realize that nautical infrastructure is sorely lacking. The present 3,650 marina slips in the region will be increased by an additional 22,650 by the year 2010. The project started in 1999.

The present limitation of marinas, along the 1,000 mile Peninsula, detracts many yachting tourists from venturing the long distances between safe harbor. The plan provides marinas within a day's travel of each other. Also planned is a "land bridge" that will divide the peninsula at about the halfway mark. Within the border of Baja California but very close to Baja Sur. This will provide a road for land transport of vessels wishing to sail both seas without encircling the entire Penninsula.

For the past twenty years I have represented foreigners wishing to buy beach properties in this region and the present forecast is as follows: Baja Sur land prices continue to soar with a hot seller's market. Cabo San Lucas is ridiculously high priced and San Jose del Cabo not far behind. Snowbirds are buying "mucho" property with "clouded title" and without the assist of proper counsel.

Some of the other "hot" markets: Mulege, Todos Santos, Punta Chivato and the East Cape. Property title problems continue to increase on both Pacific and Sea of Cortez coastlines, for both Baja states.

BAJA CALIFORNIA (NORTE) - AWAITING THE BOOM

The coastline between the U.S. border and San Quintin is a treasure trove of beach properties for sale. San Felipe and the northern Sea of Cortez also have an abundance of properties on the market. Bargain prices on beach properties are the rule; reflecting a weak demand. The result, however, is a buyer's market loaded with opportunities. The challenge, for Baja realtors and developers, is to promote these opportunities in a credible way. The long anticipated Baja Real Estate boom is still awaiting realization.

Three fear factors dampen Baja Real Estate sales. One is the fear of Baja California as a dangerous, corrupt, and drug infested war zone. Two, the traditional fear of drinking the water, bandidos etc. and three is a place called Punta Banda. A beach community South of Ensenada, where 200 U.S. families lost 80 million dollars worth of investment for leaving their brains at the border. They knowingly bought property whose title was being litigated.

EL DORADO RANCH, SAN FELIPE IS THE BAJA CALIFORNIA SUCCESS STORY

For the remainder of this article I will be discussing two areas of The Baja Penninsula's development. El Dorado Ranch is located in the northern state of Baja California, near San Felipe and the second development, Punta Chivato, in the state of Baja Sur. Both of these developments have been especially successful by providing the legal infrastructure to assure the foreigner's investment. These developers sell their properties via living trusts, supported by Mexican banks.

An exception to the sleepy Baja Norte real estate market, El Dorado Ranch is a huge subdivision of over 200,000 acres. On the western shore of the Sea of Cortez, El Dorado is seven miles north of the village of San Felipe. El Dorado ranch has 3000 U.S./Canadian lot owners and over 1000 homes have been completed. A new section of the ranch includes 500 beach and ocean view homesites, a 250 room hotel and a golf course.

The folks at El Dorado expect the Escalera Nautica will bring more sailors traveling from Puerto Penasco, Sonora. Puerto Penasco is a very hot real estate market. A comparable beach property in San Felipe sells for a third of the price commanded in Puerto Penasco.

The major distinction is that Penasco is the closest beach area to the booming economies of Phoenix and Tucson. San Felipe, by comparison, must share their primarily Southern California buyers with the Pacific Coast of Baja. The hope is for heavily traveled sea lanes from Sonora to the San Felipe Marina and others planned for the Western shore of Baja California.

In 20 years of living in Baja I have watched the majority of Baja Norte developers, both U.S. and Mexicanos, fail. Given the poor success rate, I asked El Dorado's owner, Pat Butler, why he was willing to give up a comfortable career in the states for the high risk of doing a huge real estate venture in San Felipe Mexico. His response was he knew of no other place in the United States where he could make such a major difference to a community.

San Felipe is a fishing village of 17,000 people. El Dorado Ranch employs over 150 folks and provides millions of dollars in contracts to local product -service providers.

While Pat's right brain keeps on dreaming his left brain is focused on business success and above all on MARKETING. Pat likes to point out: "Where else in the world can you find a spot like San Felipe: 10,000 ft. Mountain ranges adjoining a warm sea with unending miles of white sand beach. Within a 10 hour drive radius of the ranch exists a market population of 35 million people."

Understanding the gringos fear of driving a vehicle into Mexico, especially a half million dollar motor home, prospective buyers coming to El Dorado from the U.S., are provided Mexican auto insurance and a Mexicali police escort crossing the border and through the city. At the Mexicali city limit caravans of prospective buyers are met by the "Green Angels" (angeles verdes) who provide escort for the continuation of the trip, including a return trip back to the U.S. border at the end of their visit.

The Green Angels (Angeles Verdes) are well known by grateful motorists who are veteran Baja travelers. They patrol the highways and byways of Mexico with fully equipped vans to do vehicle repairs for stranded motorists. If they can't fix the problem, on the spot, they will tow you to the nearest garage. This is a free service to all travelers in Mexico. Butler, convinced the police and Green Angels to offer these special escort privileges as a boost to tourism.

Pat and the Ranch's good citizenship are appreciated by Baja officials who recognize El Dorado's community develpment efforts. The economy of San Felipe is enriched by the Ranch bringing 10,000 extra tourists a year to the village. Aside from more tourists, it is estimated that one half of the 7,000 retired U.S. citizens, living in San Felipe, discovered the village via an El Dorado promoted getaway. These 7,000 U.S. retirees, in a pueblo of 17,000, have made a big difference to the economy.

El Dorado Ranch has expanded the tourist caravan concept by refurbishing a DC-3 airplane with service from San Francisco. Risk taking, marketing skills and, most import to El Dorado's success, is Pat Butler's commitment to everyone winning in every deal.

Recipients of his win win way of doing business are the peasant land owners whose joint venture with the ranch provides them a substantial portion of El Dorado property sales. The town's business people are treated with professional respect and marketing assist in addition to lucrative contracts with El Dorado. Students win from Butler's scolarship contributions and by helping build the first internet café in San Felipe. Baja's political leadership win from Pat's commitment and genius in promoting the state.

PUNTA CHIVATO

Punta Chivato is a rocky point with a beautiful stretch of white sand beach on The Sea of Cortez, between Santa Rosalia and Mulege. The ejido (farming cooperative) that controlled Punta Chivato was one of the first in Baja California to privatize.