By Angela Gonzales – Senior Reporter, Phoenix Business Journal
A Spanish developer with offices in Scottsdale is building a luxury vacation rental community in Rocky Point.
The 31-unit condo property called Eagle Village at Islas Del Mar is a project of Adlanto, an asset management company with offices in Spain, Argentina, Mexico and in Arizona.
The company opened a Scottsdale office in 2006 in an effort to target projects within Puerto Peñasco, commonly known as Rocky Point, on the Gulf of California in Sonora, Mexico.
Islas Del Mar is a 700-acre master-planned community Adlanto is developing, and it includes 160 acres of salt water lagoons, said Alvaro Moreno Navarro, director of Adlanto’s U.S. operations.
As home prices continue to rise in metro Phoenix, heading south of the border is an opportunity for low-priced homes — at least for now, Moreno Navarro said.
A Jack Nicklaus signature golf course is on the property, with the second nine-hole course under construction and targeted for completion in 2024.
“Every hole is surrounded by water,” Moreno Navarro said.
The 31 townhomes being built will range between $278,000 and $285,000, depending on each of their locations and views of the ocean, he said. The 1,429-square-foot units will feature two master bedrooms and two walk-in closets. The community also will have its own swimming pool, BBQ area, garden and common areas.
So far, he has about a dozen signed contracts on the project.
As more contracts are signed, Moreno Navarro expects the prices of the homes to increase.
While the homes are not meant for year-round living, they are being marketed as vacation homes that can be rented out to others when the owners aren’t using them, Moreno Navarro said.
Adlanto would handle the vacation rental program on behalf of the investors, he said.
A conservative return on investment would be around 10% to 15%, based on a $200 daily rental rate and a 40% average occupancy rate of a typical sandy beach market rental program, Moreno Navarro said.
The infrastructure is finished, complete with water, electricity, fiber optic and a wastewater treatment plant, he said. The water is re-used for irrigation of green areas, including the golf course.
Also within that community are 107 single-family lots that are being sold individually to investors who would be responsible for building their own homes on those lots, and also would be responsible for renting out the units.
“Right now, there are around 35 single-family homes built or under construction,” he said. The beach-front properties are being sold for around $32 per square foot, while the second row behind those lots are $20 per square foot and the ones near the lagoon are $25 per square foot, he said.
“When the tides are up, the ocean comes in through the dam, refreshing the natural lagoons,” he said. “When the tides go down, the dams keep the water inside the development so the lagoons are always a minimum of four feet deep and a maximum of seven or eight feet, depending on the tides.”
The master plan of the community also eventually calls for four hotels to be built, along with a sports complex.