Copala, the beginning of Quivira in real estate sales – El Financiero

Copala, Quivira’s first real estate community dedicated to the sale of properties, after years dedicated to hospitality and timeshares, played a determining role in drawing up the commercial strategy and defining the prices of this development located in Cabo San Lucas.

For Rafael Covarrubias, general director of Discovering Mexico, Copala was the product of the fusion of two visions: That of Pueblo Bonito with great expertise in the American timeshare market and in the taste of Californians and Texans; and that of this broker or brokerage company, with solid experience in the tourist real estate market.

In 2012, he says, the real estate crisis in the United States was still alive, so they decided to enter with the Pueblo Bonito brand at the right time, with the right product and at the price that was needed.

Over time, he says, the product improved and became more refined, but it was a great success to offer direct financing and the pre-sales model started with capital of just $100,000 and the land.

Covarrubias remembers having “fallen in love” with the property from the beginning, due to its unique location, at the southernmost point of the Baja California Peninsula.

His conclusion was that with the 500 hotel rooms that were already in Quivira and the infrastructure, he would sell three properties per month at $1,750 per square meter already built.

That price was set following the precedent of Tezal, an upper-middle class development located five kilometers from the center of San Lucas on the Sea of ​​Cortez side.

But reality surpassed the project and Discovering sold six properties a month on average, whose price today is six thousand dollars per square meter; although in Quivira there are already properties for 15 thousand dollars per square meter; while in the St. Regis hotel and residences, also within the property, they have reached 25 thousand dollars square meter.

Risk sharing

At that time, Covarrubias remembers, the golf course that today is one of the best in the world was beginning to be built; Amenities such as hotel service and a dog park were also offered and since then it was conceptualized as a community.

Those who buy in pre-sale, there are many, they are also a visionary who has a certain tolerance for risk and with the support of the Pueblo Bonito brand, buyers began to see the same thing that the developers observed and decided to bet their money.

The real estate sales specialist also remembers that he asked to put a clause in the contracts that said that, if the property was not finished, after the grace period they would give the owner a hotel room while the work was completed, which never happened, but it did generate more confidence.

The demand was decisive for the direction that Copala took, at first the plan was for two thirds to be houses and one third apartments; but the proportions were reversed and there were many more willing to pay to have a sea view.

The original project for the Club House was simpler and from a pool and a restaurant, it grew to a property with a movie theater, gym, an additional snack bar, a store and hotel service.

In fact, the most important amenity is the clubhouse because with houses and apartments between 125 and 250 square meters, people must go out and have a meeting point to become a community.

Another aspect to highlight is that Americans, the main market, liked the finishes with tiles, portholes and complete wrought iron beams, a more classic than modernist trend with which they feel identified.

Additionally, the golf course was completed before all the properties were sold and the project grew from 200 to 320 units; Furthermore, prices increased very quickly and the market response was always being measured.

One of Quivira’s successes, Covarrubias summarizes, has been having a mix of products and after Copala, it was decided to have a more sophisticated product which was Coronado and another simpler one which was Mavila.

But even in the latter, the price per square meter is already four thousand five hundred dollars, which means that the capital gain of Quivira has benefited all the owners.

Today the architecture of the new developments in Quivira offers a contemporary Mexican design that is setting the trends at the moment and there will surely be more developments along those lines.

Probably in the future, says Covarrubias, there will be other developments in Quivira such as Copala, although with those changes that mark the passage of time.

The properties will always look elegant and well made, even if there is an evolution in the architectural language.