General - H-5/A is one of only a few remaining undeveloped parcels within the gates of Punta Mita. The parcel is south of the Punta Mita Highway in close proximity to the main entrance gate to Punta Mita on the north side of the highway. Primary access to the site will be from a road to be built by DINE that will include a tunnel under the Punta Mita Highway from the north side so that access will be physically inside the main gated entrance to Punta Mita. - The parcel has approximately 120 meters (390 feet) of frontage on the Pacific Ocean, on the north side of Banderas Bay. - The parcel contains approximately 9.186 hectares, or 22.69 acres. Surrounding uses include a vacant development parcel to the east (also within Punta Mita) that was recently acquired by Strategic Hotels; a buffer area to the north (between the property and the Punta Mita Highway) and Banderas Bay to the south. The villages of Emiliano Zapata and El Corral (which are also referred to as “Punta de Mita”) border the property to the west; these parcels are not part of Punta Mita, but are quickly becoming an attractive amenity to the owners and guests of the Punta Mita Resort. Planned Residential Units – The project has approved plans for the development of 100 residential units, including the following: - Two luxury oceanfront single family residences, each with approximately 5,400 square feet of air conditioned space plus extensive outdoor living spaces, pools, etc. These homes, at approximate elevations of 6 and 9 meters, will be adjacent to the beach club and other oceanfront amenities that will serve the entire site. - Eighteen detached ocean-view single-level villas, which will be constructed in two curving rows terraced up the hillside that slopes from the ocean. The first and second rows range in elevation from 9 to 11.5 meters and 14.5 to 16 meters, respectively; accordingly, the second row will be approximately 5 meters (16 feet) higher than the first, preserving the dramatic ocean views from each unit, which stretch from the city of Puerto Vallarta to the east and over the Banderas Bay to distance mountain peaks beyond. The planned units will have 4 bedrooms and 5.5 baths and will contain approximately 4,000 square feet of interior space and 1,800 square feet of exterior patio area. Each unit will also have its own swimming pool and hot tub. - Forty-eight resort condominiums in six buildings. They are planned to be 3- and 4-bedroom units averaging approximately 3,400 square feet in multi-story buildings. It is planned that a separate amenity area, including a large pool and other associated amenities, will be built to serve this area of the project. - Remaining unit mix TBD - Hotel component has also recently been approved for this site.

1. Investment Summary - Development Opportunity
Punta Mita H-5/A
Bahia de Banderas, Nayarit, Mexico

2. I. Maps & Arial Photos
Punta Mita Site Map
H-5/A Development Site
North American Flight Times Regional Map – Nayarit
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3. Bandaras Bay – Puerto Vallarta to Punta Mita Coastline Map – North of Punta Mita
Arial Photo – Close-up
H-5/A Development Site
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4. Arial Photo – Punta Mita
H-5/A Development Site
Aerial Photo – Bandaras Bay
H-5/A Development Site
Airport
Downtown Puerto Vallarta
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5. II. Subject Project Information
General
- H-5/A is one of only a few remaining undeveloped parcels within the gates of Punta Mita.
The parcel is south of the Punta Mita Highway in close proximity to the main entrance
gate to Punta Mita on the north side of the highway. Primary access to the site will be
from a road to be built by DINE that will include a tunnel under the Punta Mita Highway
from the north side so that access will be physically inside the main gated entrance to
Punta Mita.
- The parcel has approximately 120 meters (390 feet) of frontage on the Pacific Ocean, on
the north side of Banderas Bay.
- The parcel contains approximately 9.186 hectares, or 22.69 acres. Surrounding uses
include a vacant development parcel to the east (also within Punta Mita) that was
recently acquired by Strategic Hotels; a buffer area to the north (between the property
and the Punta Mita Highway) and Banderas Bay to the south. The villages of Emiliano
Zapata and El Corral (which are also referred to as “Punta de Mita”) border the property
to the west; these parcels are not part of Punta Mita, but are quickly becoming an
attractive amenity to the owners and guests of the Punta Mita Resort.
Planned Residential Units – The project has approved plans for the development of
sixty-eight residential units, including the following:
- Two luxury oceanfront single family residences, each with approximately 5,400 square
feet of air conditioned space plus extensive outdoor living spaces, pools, etc. These
homes, at approximate elevations of 6 and 9 meters, will be adjacent to the beach club
and other oceanfront amenities that will serve the entire site.
- Eighteen detached ocean-view single-level villas, which will be constructed in two curving
rows terraced up the hillside that slopes from the ocean. The first and second rows
range in elevation from 9 to 11.5 meters and 14.5 to 16 meters, respectively; accordingly,
the second row will be approximately 5 meters (16 feet) higher than the first, preserving
the dramatic ocean views from each unit, which stretch from the city of Puerto Vallarta to
the east and over the Banderas Bay to distance mountain peaks beyond. The planned
units will have 4 bedrooms and 5.5 baths and will contain approximately 4,000 square
feet of interior space and 1,800 square feet of exterior patio area. Each unit will also
have its own swimming pool and hot tub.
- Forty-eight resort condominiums in six buildings. They are planned to be 3- and 4-
bedroom units averaging approximately 3,400 square feet in multi-story buildings. It is
planned that a separate amenity area, including a large pool and other associated
amenities, will be built to serve this area of the project.
Branding – Under a branding and co-development arrangement with Del Mar
Development (“Del Mar”) (i) H-5/A will be developed, marketed, and operated as a “Del
Mar” community and (ii) Del Mar will participate in certain aspects of the project
execution, including sales & marketing and ongoing property management & operations.
Del Mar (www.delmardevelopment.net) is widely recognized as a leader in world-class
property management and resort residential services, making home ownership in a Del
Mar community a consistently high-quality and carefree experience. Based on the
absolute highest U.S. standards, their project portfolio is recognized as the resort industry
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6. “gold standard” for quality of construction, architectural design, craftsmanship and
unparalleled property management services and amenities.
Site Plan
Villas Exterior Rendering
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7. Villa Interior Rendering
Villa Floor Plan
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8. III. Market Data & Comparable Project Information
The Puerto Vallarta real estate market is extraordinarily diverse, with product offerings at all
levels of size, quality, and service. Punta Mita is the undisputed center for luxury real estate in
the Puerto Vallarta and Northern Banderas Bay area, with numerous offerings in the multi-million
dollar price range.
Sale volume and pricing within Punta Mita have shown strong positive trends as the community
continues to mature. Reported sales (as reported by DINE, excluding re-sales and development
parcels) were approximately $104.1 million in 2007 versus $79.6 million in 2006, with average
unit prices of $2.08 million and $1.33 million, respectively. Quarter over quarter results show
similar trends, with sales of $19.6 million in Q4 2007 versus $16.7 million in Q4 2006. Year-to-
date sales information for 2008 will be available during the site visit.
The following information, which has been assembled primarily by the existing ownership group,
summarizes pricing and sales activity in the current developer and resale offerings within Punta
Mita and beyond. The information was compiled primarily via multiple tours of the area, from
information provided by the two main luxury real estate brokerages operating in and around
Punta Mita (La Punta Realty - www.lapuntarealty.com, and the Punta Mita Discovery Center -
www.puntamita.com.mx), and various real estate and project websites. As with any market in
Mexico, information is challenging to validate, and requires substantial efforts to amass and
verify. Note: This information was last updated in early-2008.
This information has been supplemented by an appraisal / market study that was completed in
March 2008, which was previously provided to PDI.
Primary Competitive Developments
Four Seasons Villas – The Four Season’s whole ownership product is located on the
hillside west and north from the main Four Seasons hotel. They generally have good
ocean views, but are not within easy walking distance of the hotel or beach. The units
are detached homes ranging in size from 3,650 to 4,743 square feet of interior space and
6,475 to 7,996 square feet of total indoor/outdoor living area. The quality of construction
is good and each has a small pool and a separate hot tub. There are a total of 53 villas
planned, and the final phase of 12 units is currently being developed. The project has
averaged about 10 to 12 sales per year. Current furnished pricing is $3.6 to $4.075
million ($860 - $1,000 per square foot). Units initially offered in 2004 started at $1.8
million. There were also four oceanfront villas originally sold as part of the resort called
the Signature Estates.
Four Seasons Fractional Units – The Four Season fractional units adjoin the hotel.
The first phase, which consisted of nine units, was completed in January 2007. The
second phase of 15 units, which is currently being sold, is scheduled for completion in
December 2008. A total of 35 units are planned, with more to be built on the La Solana
parcel, which the Four Seasons developer purchased for $51 million approximately 2
years ago.
Pricing is reportedly being increased for the next phase, which will be marketed at
$500,000 per share ($1,750 per square foot) for the 4 bedroom units and average
$280,000 per share ($1,320 per square foot) for the two and three bedroom units. The
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9. use pattern being sold is a 1/12 interest with 21 reserved days and an additional 7 days
of use possible. The quality of construction is good, but not exceptional for Punta Mita.
They are stacked units in three story buildings. Many units have ocean views, but the
buildings are back somewhat from the beach.
St. Regis For-Sale Product - The St. Regis hotel is under construction. The Discovery
Center has indicated that the St. Regis will most likely offer an initial release of 15 to 20
whole ownership or fractional units, with later offerings to bring the total number of
residential units to around 65. However, residential development would only come after
the hotel has been completed and under operation. When completed, the St. Regis will
offer 120 hotel rooms/suites, a 10,000 square foot spa and fitness center, two
restaurants, and a beach club. The hotel is expected to open in 2008. The best
information available has indicated the following program for the St. Regis for-sale
product:
Whole Ownership Villas
Size: 4 to 5 bedroom, 4,200 to 4,700 interior square feet
Price: $5,500,000 to $6,500,000
Price per square foot: $1,310 - $1,380
Furnishing Package: $200,000 - $250,000
Premium Membership Included ($75,000 value)
Anticipated Absorption: 2 years
Fractional
Size: Average 2,000 interior square feet
Price: Average $240,000 per share
Share: 1/15
Total Price per Villa: $3,600,000
Price per square foot: $1,250-$1,650
Anticipated Absorption: 120 per year / 5 years
Secondary Competitive Projects Within Punta Mita
La Punta Estates – This 29-lot oceanfront subdivision has seen resale lots in the range
of $4.5-$7.5 million (1.04 to 1.34 acres). There have been no recent home sales, but lot
re-sales have all been about 80 percent above original pricing in 2004.
Ranchos Estates – The Ranchos Estates is comprised of twenty, two-acre beachfront
lots. All 20 lots have been sold and one resale took place in 2007 for $5.5 million for one-
half of an original lot. The homes developed in this area are spectacular, featuring
unique architecture and enjoying private access to very nice beaches. The development
is not directly connected with the rest of Punta Mita, and therefore enjoys an even greater
sense of seclusion than found elsewhere in the already very private Punta Mita. Pricing
for re-sale homes in this area is considerably stronger than other areas in Punta Mita,
reaching $7.5 million.
Lagos del Mar – Located on the golf course and generally less than one acre in size,
Lagos del Mar offers ocean view lots, but no beachfront access. The beaches in the
immediate vicinity are also a bit more pebbled than found elsewhere within Punta Mita.
Like the Ranchos Estates, most of the homes developed to date are unique and of the
highest quality. The lack of beachfront is reflected in the pricing compared to the
Ranchos Estates, with re-sales between $2.8 million and $3.9 million.
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10. Kupuri – Kupuri is a collection of 30 residential lots located on the north side of Punta
Mita. Pricing for the lots was reported to be between $2.25 million and $7.8 million.
Beachfront, ocean-view, and hillside lots are being marketed, with each unit having its
own private beach cabana. A Punta Mita Residents’ Beach Club is under construction on
an adjacent parcel.
El Encanto – El Encanto is a collection of single family homes and fourplexes, offering
ocean views but no beachfront access, as the development is separated from the beach
by a golf fairway. Overall, the design and finishes of the units are above average, but not
rising to the level of detail found in other projects in the area. There have been both villas
and condominiums offered for sale.
Hacienda de Mita - Hacienda de Mita is a large multi-story condominium development
with beach front and hillside locations. It will contain a total of 100 units and is reported to
be about 70 percent sold out. The remaining unsold units are on the hillside away from
the ocean. The exterior design and finishes are below the level of quality and appeal of
most of Punta Mita. The unit interiors are of good quality, but not exceptional. The units
in the front of the buildings have good ocean views, and there is a beach with a series of
swimming pools overlooking it.
Porta Fortuna – The Porta Fortuna site (approximately 14 acres) is an oceanfront parcel
with little or no beach to speak of, and was originally purchased for $21 million. This
project recently started construction. The parcel has frontage on, and views across,
Banderas Bay, but its beach is quite rocky. The site adjoins the new golf course under
construction. The development will include a beach club, a planned dock and a spa. It
will contain approximately 60 units consisting of 7 beachfront units, 6 ocean-view units
(2nd row), 14 duplex units (3rd row) and 33 condominiums. The condominiums will be in
five buildings at the back of the parcel.
Parcel H-5/B – This parcel was recently acquired for $53 million by Strategic Hotels and
Resorts, owner of the Four Seasons Resort and the La Solana parcel; reportedly, this
transaction closed despite substantially higher offers for the site due to the relationship
between DINE and Strategic Hotels. It is approved for a 140 room hotel, 30 fractional
units (sales cannot start until March 2010), 30 single-family homes and 80
condominiums. The parcel contains 23 hectares, or about 57 acres. This parcel borders
H-5/A to the east.
Outside the Gates – The Greater Puerto Vallarta Real Estate Market
Downtown Puerto Vallarta – There are not many concentrated areas of high quality real
estate development in the downtown Puerto Vallarta area; the notable exception is the
Concha Chinas area, which is located on the hillsides above town. A typical four
bedroom villa sells in the $2.5 - $3.5 million range.
Puerto Vallarta to Bucerias – The Puerto Vallarta marina area offers several high
density condominium tower projects. The product here is very different from, and should
not pose a competitive threat to, offerings in and around Punta Mita. Local real estate
experts place the price per square foot in the $500 range. Heading north, there is little
high quality development until you make the turn off the main highway at Bucerias and
start west towards Punta Mita. The only notable development in the area of Bucerias is
La Vida, a beachfront development located in the heart of Bucerias.
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11. La Cruz de Huancaxtle (commonly known as Costa Banderas) - Immediately in the
vicinity of the turnoff from the main highway to the road to Punta Mita is the town of La
Cruz de Huancaxtle. In addition to a new marina that has been recently completed, this
area offers two sizeable projects that are actively under construction, Punta Esmeralda
and Brisas Vallarta. Both are relatively high density projects with numerous condos,
townhomes and single-family residences, along with a beach club, spa, and dining
options.
La Cruz de Huancaxtle to Punta Mita – Along the stretch of the Banderas Bay west of
La Cruz de Huancaxtle along the road to Punta Mita, there are several smaller luxury real
estate projects offering spacious and often-times magnificent beachfront and ocean view
homes and a limited number of development lots. Generally speaking, these
communities have been previously developed and now offer only limited resale
opportunities.
Real del Mar (www.realdelmarvallarta.com), where Exclusive Resorts owns 21
homes, is set on a steep hillside that affords excellent ocean views and contains a
beach club offering food and beverage service, as well as a private beach with two
pools, a small fitness center, a spa and concierge services. Pricing is around the
$2.5 to $3.5 million range for a typical unit.
Los Veneros (www.losveneros.com.mx), now in development and pre-selling, is
located on a wide sandy beach that is popular with the local surf population.
Development plan calls for 290 condominiums. Despite the excellent ocean views
and prime beachfront location, the high density is out of character with the rest of the
immediate area, and pricing is commensurate.
El Banco (www.elbancomexico.com), in development and pre-selling, is one of the
highest quality projects outside the gates of Punta Mita. Former Yahoo! CEO Tim
Koogle acquired the land and intends to create a low-density, high-quality beachfront
development. The site contains an excellent beach, with cliffs and gently sloping
land that offers excellent views of the ocean. El Banco has sold 11 beachfront
development lots, each sized at approximately two acres, for around $4.0 million
each. An additional 13 ocean-view “beach villas” and 26 lakeside casitas will be
developed. There is no private golf access for this development.
Punta Vista III - Under construction on a beachfront parcel adjoining H-5/A to the west,
but outside of Punta Mita, Punta Vista III is a six-story stacked condominium project in its
third phase. The offerings, with their good quality interiors and finishes, have reportedly
been well received. They represent the high end of the range of quality for units built in
the Punta de Mita village area. Although adjacent to H-5/A, the location is significantly
inferior since it is outside of the gates of Punta Mita. The project will contain a total of 22
units. Remaining units are priced in the range of $1,250,000 to $3,500,000 for units
ranging from about 2,722 to 6,478 square feet of interior space. Amenities include a
large pool area, beachfront gym and spa, and individual garages.
Beyond Punta Mita to the North (known as Riviera Nayarit) – Continuing north are the
towns of Sayulita and San Pancho. Sayulita has long been discovered and no longer
resembles the sleepy fishing village it once was. An easy 20 minute drive from Punta
Mita, Sayulita is popular for surfing and beachcombing, and also offers casual
restaurants and bars. A scattering of high-end real estate can be found in the area
between Sayulita and San Pancho.
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12. Two kilometers north of Punta Mita is Litibu, a large-scale development planned and
under development by FONATUR. Litibu consists of 412 acres situated along two
kilometers of beachfront. The current development plan calls for 2,880 hotel rooms and
910 tourist residences, as well as an 18-hole Greg Norman designed golf course. The
golf course and infrastructure are under construction. It is rumored that an agreement is
in place with Barcelo Hotels and Resorts to develop some or all of the hotel density.
IV. Property Photos
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