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  The Baja real estate boom was given a new and very positive shot in the arm with the announcement that “The Donald” as in Trump concluded negotiations with Irongate Development to build the Trump Ocean Resort Baja Mexico located at Km 16 in the northern part of Rosarito (county).
 
 

That arguably the most famous real estate developer in the United States is lending his name and thus his reputation building in Baja California a mere 30 miles from downtown San Diego is great news and confidence builder for the entire Baja region and will be of immense help in keeping the real estate boom alive well into the future.

What is surprising is that the market is taking an upward swing attracting affluent US buyers along both the Pacific Coast (Tijuana-Ensenada) as well as along the Sea of Cortes coast from San Felipe and points South. The affluent $1 million plus buyers were, at least in the last 10 years, buying in Los Cabos located in the state of Baja California Sur, not in Baja California (Norte). This is about to change.

To be sure there are still, comparable to California prices, bargains to be had along the Tijuana-Ensenada coast, but the new trend has attracted some major developers ready to exploit the high to very high economic end demand.
 
The setting is a very high end destination resort combining grand opulence found in multimillion dollar homes to which are added amenities and services, such as tennis, spas, gourmet restaurants and boutique shops, as offered by bona-fide 5-Star resorts. High end developments will be offering some choices.
 
There will be the traditional purchasing of homes/condos but there will also be a new twist in the Baja coastal corridor – “fractioning,” not to be confused with time-share (interval-ownership).
 
Fractioning is the actual fee interest as tenants in common ownership typically of a condominium or townhouse within a separate section of the development.
 
Fractioning ownership is not a new idea as there are many such developments scattered throughout the world, including the US and Mexico. What is new is that beating out Trump’s project, the first such Baja coast development will break ground during the course of late October- early-November in Ensenada – Porto Hussong.
 
Why would a wealthy family buy a “fraction” of a condo unit in a posh resort when such a family can buy outright such a condo, was my first reaction. The reason from researching other fractioning developments is that the wealthy like to travel and spend a little time here and a little time there – but always in style and with pampering privileges. Buying a fraction in the right development begets access to a multitude of other similar posh developments as the best ones belong to a network of other 5-star resorts.
 
Porto Hussong offers a 5-week fractional ownership in its “The Meridian Club” that time can be exchanged in part or all in one of a number of other 5-Star resorts that also have fractional ownership belonging to the network. So for the price of one, albeit expensive, exchange privileges open entire continents for high end vacationing.  Added incentives for considering Porto Hussong’s Meridian Club membership is access to a 74 foot Viking Yacht. And what the developers consider the coup-d’resistance is a state-of-the-art mega-yacht marina capable of mooring vessels up to 200-foot in length. 
 
If thus far I sound upbeat about Porto Hussong it’s because I am. Their success will raise the bar for developers all along the coast that in turn will provide new economic and employment resources in Baja plus the inevitable spill over into San Diego in the retail, wholesale product sales and services.
 
The ultimate success of Porto Hussong depends in great part to the quality and experience of the development team. And because the development is in Mexico, the extent to which the developers assure clear title to buyers and compliance with their fiduciary obligations to buyers in handling pre-sale deposits and delivery of the product as represented.
 
Many of these columns have long advised Metropolitan readers on buying steps to take. To wit, if the developer does not offer title insurance policy to buyers – don’t buy. If the developer requires a pre-construction deposit which is to be used for construction financing, but does not offer completion bond to protect buyer’s deposits – don’t buy. If a developer claims deposits are refundable, but does not escrow funds with an acceptable third party entity with fiduciary obligation – don’t buy.
 
Porto Hussong meets the acceptable standards. They offer title insurance to buyers issued by a US title insurance company. They take a fully refundable “reservation” deposit that is escrowed with the US title insurance company. The deposit in this case is in favor of the depositor as it assures the availability of the condo/home buyer’s choice. And the final decision is deferred to such time as the product is ready for final purchase. As an added incentive and further protection is the availability of mortgage financing made available to US buyers. This is further protection as the financing is through GE Financial of Mexico that will perform due diligence and assure itself of the quality of the construction before lending. So Porto Hussong meets the safety net requirements.
 
What is left is the developer and the team. And here again, Porto Hussong meets the standard. It begins with the Hussong family the owners of the land. Theirs is a high profile name as the Cantina Hussong has been the favorite watering-hole for generations of Americans throughout Southern California and points far beyond. The Hussongs are interwoven into the fabric of Ensenada with splendid reputations in business and community leadership.
 
The developer the Hussong family chose to partner with is the Meridian Development Group based in Reno, Nevada. The director is a better than 35 year veteran of real estate developments in Mexico, Chris Merson, with whom I met to discuss his past activities in Mexico and Porto Hussong specifically. The number of mutual people known to both of us both in the US and Mexico directly involved in real estate development was a trip into both our pasts. But I did better, after the meeting I made some phone calls and verified Chris Merson is for real.
 
So Porto Hussong meets the standard for a good seal of approval. But there are also others, we shall discuss in future columns such as Salsipuedes, the 750 acre parcel described by many, including this writer, as the Big Sur of the Baja coast, and the Rosarito Beach Hotel’s condo-hotel project that promises to be a huge success.