front sites left in Mexico,” he said.
A 2011 Mexican government appraisal
and report assessed just one-fifth of the
property at $175 million, according to
“The minimum starting bid of $39
million is set well below market value to
drum up interest, bring potential buyers
out of the woodwork and get things mov-
ing along,” he said. “This auction repre-
sents a truly rare opportunity for the right
investor or developer.”
Interest is running high, although
Haghani would not divulge what compa-
nies or individuals already have expressed
Those who do and who are serious first
must download the Due Diligence package ($100 for the 400-page document)
from Paramount Realty’s website, www
The package includes property and auction information, corporate documents,
copies of deeds, public records and appraisals.
Paramount had not done business in
Mexico prior to this auction, “so we spent
six months studying the property and
meeting with legal counsel in Mexico City
before we put it up for bid,” according to
“An auction is the right way to go,” he
hotel brand flag, was as barren in the
1960s as Bahiamar is today.
Cancun’s humble beginnings
When development started in January
1970. Cancun had only three residents,
who were caretakers of a coconut plantation.
The Mexican government had to finance
the first nine hotels, due to the reluctance
of investors to bet on an unknown area.
Last year, Cancun welcomed 5.9 mil-
lion international visitors. This year,
spring break season alone was up 7.2%
over 2011, according to Mexico’s Ministry
of Tourism, and Cancun and the Riviera
Maya topped the list as top spots chosen
by American travelers between 16 and 25
The infrastructure includes a highway
that intersects the Bahiamar entrance, another four-lane highway under construction from Ixtapa to the site, high-voltage
electricity, a microwave relay station that
will permit installation of thousands of
telephone lines, freshwater sources and water wells for irrigation.
Bahiamar also is within driving distance
of Mexico City, Leon, Guadalajara, Ixtapa
And the winning bid is?
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said. “If this property were listed with an
individual broker, it could sit for years.
This way, we as the auction company have
done the homework in advance to educate
those who are interested, we market the
property to reach as many potential buy-
ers as possible and then let them bid on
the purchase price.”
An auction also demonstrates to the
marketplace that the owner is serious
about and committed to a sale.
The government of Mexico also is “very
interested” in the auction, Haghani said.
“The government has expressed explicit
support for the development of this prop-
erty,” he said. “In fact, they are thrilled.
They envision it down the road in the next
10 years as becoming the next Cancun.”
And what a success story that was and
is. The tourist zone today in Cancun,
packed guest wing to guest wing with re-
sorts of all sizes, most of them all-inclu-
sive and flying every major international
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