Algodon Mansion Façade: Before & After

Wow, we have come a long way!  These are a few photo comparisons of Algodon Mansion, and the “before” shots are what the mansion looked like before we began any of our construction.  Other than having said that, I think the photos speak for themselves!

 

  

 

 

We’re having a professional photographer come in for some more shots soon, so I’m really looking forward to showing you the “before & afters” of the interiors- suites, Chez Nous, etc.  You won’t want to miss it.
-Scott Mathis

Happy Holidays and New Year’s Celebrations to one and all!

2009 was truly a great year, and we have much to look forward to in 2010.  With Algodon Mansion’s opening in just a few short weeks, our new employees are trained and ready to go, and I can barely describe everyone’s enthusiasm.   We are the talk of Buenos Aires.  I’m happy to say that we were able to hire top talent merely on the idea that our extraordinary and unique luxury hotel was about to open.

The mansion is stunning.  I am personally astonished by its ultra high-quality, luxury décor and overall feel.  Although that was our intended vision from the very beginning; it’s still overwhelming to see that it has actually become a reality.  It has been a long journey but everything is finally coming together.  Thank you investment partners, thank you staff, thank you designers and architects!  You have all worked very hard to make this moment possible.

Our 3 night “Proposal Package’ appears on the Global Traveler website, and we have a short but sweet mention on the Pan American Tours & Travel blog.

See you in Buenos Aires!

- Scott Mathis

Chez Nous Sampling

Last week when I was visiting Buenos Aires on business, I had the pleasure of meeting once again with our new Executive Chef, Antonio Soriano, in order to discuss and sample a selection of menu items for Chez Nous. The purpose of this preview sampling was to familiarize Algodon Mansion’s principle and executive staff with the menu and its ingredients, by experiencing it firsthand. These are the people who will need to be well acquainted with the tastes, aromas, ingredients and the stories behind the recipes and foods that inhabit Chez Nous’ menu. This was also an opportunity for us to ask any questions, and provide any input we might have in relation to the menu. The sampling was comprised of nearly everything that the dinner menu will feature. We shared an open forum to confer our tasting experiences, and discussed the pairing of certain Algodon Wines with certain menu items, since Algodon Wine will be highly emphasized on Chez Nous’ wine list. One of my favorite items on the menu was a mushroom truffle mouse. Antonio, along with Gonzalo Bazterrica (Chef de Cuisine) and Damian Betular (Pastry Chef) were careful to explain to us each dish’s preparation. As virtually all of our ingredients are regional, these proficient chefs were also very informing about where each of the ingredients came from. For example, the oysters and the sea bass are from Patagonia, the garlic is from Mendoza, and the beef (of course) is 100% grass-fed Argentine beef. I must say that the three chefs appear to have a real affinity for working together, and their seemingly seamless preparation would indicate to someone who didn’t know better, that these three share camaraderie from having worked together for years. Their skills are exceptional. Damian was even able to weave some of his pastry expertise into the main menu with a certain shrimp appetizer wrapped in phyllo dough. It was extraordinary. I wish I knew more about the restaurant industry, but I am certain that our investors and customers will enjoy Chez Nous, and I hope this will be a profitable venture. We’ve decided on this logo for the restaurant: This design may, for example, appear in on the menu cover, in certain advertising, and on incidentals such as matchbooks or restaurant stationary. --Scott Mathis

Argentine Interview, AM Update, More Media, and Wine News…

I hope everyone had a memorable Memorial Day weekend! For those Spanish speakers (or Google Translate aficionados) check out our interview with Los Andes online published this week (the interview can also be found at AreadelVino.com). Los Andes newspaper is a huge publication, analogous to the New York Times of Mendoza. In the interview we discuss among other things our Algodon Wine, a bit of our history, and the fact that we’ve already invested approximately $25 million in our Argentine properties. The interviewer also touches on the world-wide economic downturn and its effect on real estate developments. I have always been very clear about my optimism regarding the future of Argentine real estate, and that I believe in the importance of diversifying personal investments outside of the U.S. economy and the U.S. dollar. In one of my favorite exchanges, the interviewer asks to what extent our Argentine developments have been affected by the economic crisis:

Question: Did you have to lay off any staff due to the (economic) crisis? Answer: Actually we hired nine people in Buenos Aires for the mansion; a luxury hotel with a restaurant, bar, and wine cave- and two others for the hotel in Mendoza.

Gerhard Heusch emailed me this morning and once again confirmed that the scheduled Algodon Mansion opening date is still intact. They’re working very hard down there, and the work is going fast!

Algodon Wine Estates gets a tremendous write-up from Jim Bryant for Chicago’s (metro area) “Quintessential Barrington” lifestyle magazine. Mr. Bryant’s glowing descriptions of our estate, our wine, our amenities, and San Rafael- go beyond terrific. He also very favorably mentions our partners at Bombal & Aldao and Finca los Alamos.

In other wine news, The LA Times published an interesting article titled Findings of wine contest study hard for critics to swallow. From the article; “…consumers should not always assume that gold medal winners are outstanding wines…retired Cal State Humboldt professor Robert Hodgson said he looked at the results for more than 4,000 wines entered in 13 U.S. competitions in 2003 and found little consistency in what wines won gold medals.” Our Master of Wine, Antony Foster, followed up on this in an email to me. For the most part, he indicated that he’s in agreement with the article, and that he thinks it would be in our best interest to enter our wines in reputable competitions run under international rules. Good advice.

--Scott Mathis

Algodon Wine Sales, Our Neighbors, and a Gold Medal!

Our Chicago area wines sales are looking good. This week I spoke to our Midwest distributer, Jomada Imports, and was told that we’re selling on average 150 cases (12 pack) of Algodon wines on a monthly basis…that’s 1,800 bottles a month. That’s a nice start considering that Algodon Wines are new to the US market and its consumers. Keep up the good work Jomada!

Our neighbor next door to the Algodon Mansion recently finished some exterior construction. It looks good and is a big improvement on what was there previously.

Big olive oil news! Diego Coll Benegas, Algodon Wine Estates’ Director of Project Development, Tourism & Hospitality, just emailed me to say that Algodon Olive Oil won the gold medal in a national competition hosted in Buenos Aires this week. Our gold medal was for the “blended” category. That’s exciting news. I’ve had the olive oil myself, and I have to say that a gold medal comes as no surprise to me. I guess we’ll have to reprint our olive oil’s bottle labels to include: “Argentine judges agree: Algodon Extra Virgin Olive Oil is the best!” We will be serving Algodon Olive Oil at Algodon Mansion.

--Scott Mathis

Tennis Courts, AM staff, Chez Nous…

We’re seeing some great progress on the courts! They’re ready for play, and as you can see from the photo, they just need a net and some fences. The Algodon Malbec Classic, hosted at Algodon Wine Estates of course, is not far off…

Algodon Mansion is also really looking great; I was down there last week. Our management team did a great job of interviewing candidates for the hotel and kitchen. Some of our new hires are from one of my favorite hotels in Recoleta. This is an experienced group that will represent Algodon Mansion well.

I spoke with nearly everyone here and we have all decided to rename (or name; since we never officially decided on one) the mansion’s restaurant to “CHEZ NOUS,” which means “OUR PLACE” in French. Our Buenos Aires crew really likes it and how it works with the property and the concept! The menu at CHEZ NOUS is complete as well, and I believe everyone will love it. We are currently having an English translation of the menu prepared, which we’ll share as soon as it’s finished.

All in all, there has been substantial progress on Algodon Mansion. With most of the larger projects complete, we are now primarily just working on the little details. Everyone down there is working very well together, and they (as much as us in New York) are all very excited to see the finish line and a finished product in the very near future...

The Argentine Post directs us to a nostalgic YouTube video of Argentina’s early years. The 1932 travel newsreel is a classic Metro-Goldwyn-Mayer presentation. As I was watching the video, it struck me that this was the same period in time when José Jurado was first making a name for himself in the international golf world.

--Scott Mathis

Louis Vuitton, New Cigar Bar, and Canned Truffles…

As I mentioned in my editorial from the most recent “The Algodon” newsletter (and it certainly bears repeating here), Louis Vuitton and Algodon Mansion will be partnering in a joint marketing campaign of sorts, where the French fashion designer will organize a celebrity photo shoot in one of Algodon Mansion's Algodon Royale Suites. We are also scheduled to host private showroom events for Louis Vuitton’s “top buyers” in our restaurant, and possibly in our suites, in the future. We’re very excited to be working with such an esteemed name and talent, and we hope this is the beginning of a lasting relationship.

Evidently the Alvear Palace is opening its own cigar bar. What a great idea; the more the merrier, I say. This beautiful hotel is Algodon Mansion’s neighbor; it is a Buenos Aires staple and has a great reputation of high-end elegance and sophistication. It represents the kind of old-school luxury and hospitality that is so popular in Europe, and which is also very indicative of Recoleta.

With all the Algodon Wine Estates truffle news in recent days, I was happy to stumble upon this consumer website from a Beverly Hills retailer of truffle and gourmet products. This 7 oz. can of truffles retails for $57 USD. That’s not even for fresh truffles; it’s for canned truffles. I think we’re headed in the right direction…

The Financial Times published a great travel piece titled Old Europe in Buenos Aires, which covers a host of tourism attractions and historic places you may be familiar with from visiting there yourself. From the article; “I think Buenos Aires must be the last remaining European city,” a Viennese friend once remarked. Time and distance have left people here with hazy romantic memories of the Europe they left behind.

--Scott Mathis

Algodon Mansion bath products, and Buenos Aires makes top 10 again…

It was recently decided that Algodon Mansion’s suites will carry Côté Bastide and Laura Tonatto bath and fragrance products. These are world-class lines that truly fit well and compliment our Buenos Aires mansion, as well as the Algodon brand image. Both distinguished lines have a large international presence and are synonymous with sophistication and elegance. As these small, though essential, details begin to finalize, it forces me to look back on the road traveled to get here, and I am happy by all that we have accomplished. Just a few more months and we can all share a toast to one another at Algodon Mansion’s Grand Opening.

Once again, Buenos Aires has made Travel & Leisure’s “Top 10 World’s Best Cities”. BA is ranked #4 this year (slipping two spots from #2 in 2007 and 2008). The accompanying article touts; “Beyond the “Paris-of-South-America” clichés, this is a city of world-class art, exceptional cuisine, and internationally acclaimed design. After a 2001 crisis battered the nation’s economy and the value of its currency, B.A. became one of the world’s few high-gloss/low-cost travel destinations…”

Finally, there was a great recent article in the New York Times on BA’s “bares notables”. In 1998, the city legislated these “notable bars” (a landmarked status, I suppose) “as the official designation for bars, cafes, billiard halls and confectionaries whose antiquity, architecture or historical significance make them worthy of note and of preservation efforts”. The article details several of these businesses and their unique histories. If you’re making a trip down there anytime soon, be sure to print this one out and take it with you. There are some very interesting places that are perhaps a bit off the beaten tourist track. If you remember, just a few weeks ago I posted about the Times’ take on BA’s Barracas barrio. I’m pleased to see that such a well respected newspaper is continually covering so much of the culture from one of my favorite cities in the world.

Algodon Wine Estates updates, and other news…

Here is a preview of what our tennis courts may look like after construction is completed in just a few short months. I came across this photo in my email archives, and wanted to share it. These courts were built by the same contractors who are currently building ours. It’s exciting to try and picture. Obviously ours will look even better than this with our Grand Center Court that seats nearly 700 people and is sunken into the ground for panoramic views from above. We’ll also have 8 clay courts, 2 grass courts, and 1 hard court.

Rubén Barsamian sent me the next photo earlier in the week. It shows one of our contractors leveling the courts. As I may have mentioned before, except for the Grand Center Court, as of today the land has all been leveled:

I also received photo updates on the two new reservoirs on our (recently expanded) golf course this week. Here you can see that they have lined the pond in anticipation for its filling:

Very exciting, and all of this will only add even more value to our already remarkable estate.

Earlier this week the New York Times ran this piece on the revitalization of the Barracas barrio in Buenos Aires. This neighborhood is experiencing “spillover rejuvenation from neighboring Puerto Madero and San Telmo, two areas that have benefited from a rise in tourism and a real estate boom. Barracas, near the city’s old ports, means barracks or warehouses. Long since abandoned, many warehouses are being renovated into luxury housing…” Sounds like the “Soho effect”. I’d be curious to know if the article had any immediate impact on real estate sales for the area. I’m betting it did…

--Scott Mathis

Polo, Dakar, GM bailout, and Art…

Hola! Nacho Figueras explains the rules of polo in Vanity Fair Magazine. In case you don’t know, Nacho is synonymous with Argentina polo. Nacho was recently our guest for a wine tasting and cocktail reception at Algodon Mansion. (pictured from left to right: Nacho Figueras, Me, Luisa Aldao, German Neuss, Camilo Aldao, and Nacho’s lovely wife Delfina):

Last weekend he and Great Britain’s Prince Harry played the Veuve Clicquot Manhattan Polo Classic, a celebrity attended charity match at New York’s Governors’ Island. The competing teams were Black Watch and Sentebale, and the British team won 6-5. This brings to mind the construction of Algodon Wine Estates’ own twin polo fields scheduled for completion next year. Polo is very big in Argentina, and our Champions’ Club will feature only the best of these types of facilities.

As I mentioned in an earlier post, the Dakar Rally will return to Argentina in 2010. The map of next year’s route is now available online, and it indeed runs right through San Rafael! What a great publicity and promotional opportunity for the city, and in turn Algodon Wine Estates. As you can imagine, the hotel was also fully booked when the rally came through earlier this year.

Argentina’s President Cristina Fernandez de Kirchner announces that the country will use $70 million of nationalized pension funds to provide General Motors (Argentine unit) with a loan to help the automaker finish work on a new car model. Finally, here’s a CNN video link to a report on the Buenos Aires International Art Fair (aka “ArteBA”), which has been called “the hottest art event on the planet”. One gallery owner interviewed explains how the combination of Argentina’s weak peso and the world-wide economic downturn is presenting lucrative opportunities for the county’s artists. Evidently savvy international collectors have realized that Argentina offers world-class pieces of art for unheard-of prices, and they are loading up on these great deals. That’s called “getting in when the getting is good” and similarly-minded people are doing the same with real estate there, obviously.

--Scott Mathis

Malbec scores, more Malbec, Cabrera, BA, New York Mag...

Great news! Anthony Dias Blue, in association with the James Beard Foundation, rates Algodon Wine Estates 2004 Malbec with a score of 90 points! Mr. Blue is one of the most influential food and wine personalities in the U.S., and his media reaches an audience of more than 30,000,000 global consumers each month. The review will appear in the next issue of The Tasting Panel Magazine’s “Blue’s Reviews” section, where every month Mr. Blue tastes approximately 500 wines and chooses the best 35 to publish his reviews of. I’ll be sure to repost the web address once it’s up. In the meantime, you can read more about Mr. Blue’s broadcast and media affiliations here.

From The Washington Post, here’s another great article about Argentine Malbec; “Ask a retailer or restaurant sommelier which wines are most popular today, and one of the first answers you're likely to get will be…Malbec from Argentina. Ask which wines over-perform for their price, and you'll probably get the same answer.” The author of the piece, which is aptly titled “Argentina's Andes Advantage”, specifies three main ingredients for the success of the Argentine wine; value, quality, and altitude. That’s what we’ve been saying all along, but what they fail to mention is that San Rafael’s district of Cuadro Benegas- where Algodon Wine Estates is located- provides unparalleled soil quality that is ideal for growing red varietals such as Malbec and Bonarda. In case you missed it in the last newsletter, here’s an informative elaboration on that topic written by Algodon’s Winemaker, and Director of Project Development, Tourism & Hospitality.

With Angel Cabrera’s major title win at the recent U.S. Master’s, he has singlehandedly brought the words “Argentina” and “golf” together in many a conversation around the world. I believe his win will prove to be good news for us and our 18-hole championship course in San Rafael, as well as for Argentine golf in general. As many of you already know, Cabrera is the first Argentine- let alone the first South American- golfer to win the Master’s; considered by many to be golf's most prestigious tournament. Here’s a recent article in TWP that describes his homecoming.

Reuters recently published an article headlined Some pick Argentina as haven from economic blues, which specifically talks about the younger generation – people in their 20s and early 30s - moving to BA for its financial benefits; “Buenos Aires, a sophisticated, European-style capital in South America that long has been popular with savvy tourists and artistic bohemians, is now a haven for some young adults from Europe and the United States who find their savings go further here…”

On a similar theme, New York Magazine’s Real Estate section asks “What If You Left New York?”: “New Yorkers have a special affinity for the similarly cosmopolitan lifestyle of Buenos Aires, where real estate is cheap and the weather is currently 70 degrees and sunny.” The piece compares real estate prices for the two cities – specifically BA’s Avenida del Libertador vs. NYC’s Fifth Ave., saying; “For a comparable apartment here, you’d have to pay eight times as much…” This of course puts me in mind of our own comparison from a few months ago of Algodon Mansion vs. Manhattan’s Upper Eastside mansion.

--Scott Mathis

New Algodon Mansion Website

Our new Algodon Mansion website is up and running, in anticipation of the hotel’s grand opening this Fall. The website design is very sophisticated and polished, and though it only represents a preface of how the website will appear once the hotel has actually opened its doors, it’s still enough for you to get a clear idea of its sleek and elegant design. I feel it represents the concept of Algodon Mansion quite well. As we move closer to our grand opening, you’ll see more and more information, photos, navigational options, etc. that will expand the website’s current sitemap, so keep checking back.

--Scott Mathis

More Mendoza in the News

An excellent article that appears on FinancialTimes.com was forwarded to me last week. It’s titled “On the roof of the wine-growing world” and it’s a great read that praises Mendoza. The author’s enthusiasm strikes me as that of someone having just discovered the beauty of Mendoza for the first time. Another great article at Todaysfinancialnews.com discusses Mendoza’s draw to the retiree. The Washington Post talks about Argentine wine sales in U.S. restaurants (given our economy, and patrons looking for quality valued wine options) quoting one restaurant owner as saying; "We're selling the hell out of Mendoza". You can read that one here. And finally, it was announced that the world famous Dakar rally will return to Mendoza in 2010. The race will begin and end in Buenos Aires, and although I don’t think the exact route has officially been announced yet, I’ve heard that it will not only navigate through San Rafael once again – but it will go right by our property.

--Scott Mathis

Malbec & Buenos Aires Restaurants

Two articles that I recently stumbled across are worth pointing out. Once again we see praise for Mendoza and its signature grape, Malbec. The first piece comes from the Guardian.co.uk - it’s more of an editorial- titled Argentina is giving malbec a good name. The other appeared in the Chicago Tribune, and is titled Malbec’s star turn.

In another article from the not too distant past, The Washington Post did a feature on an American expat now living in Buenos Aries, Layne Mosler. She’s a freelance food writer and columnist for South American Explorer and a regular contributor to Time Out Buenos Aires. Here’s her unique angle: She’ll hop in a Buenos Aires cab, ask the driver to drop her off at his (the driver’s) favorite restaurant, and then she’ll eat there and write a review of it. She considers this the best way to learn about all of the hidden, great places to eat in the Argentine capital. If you’re visiting Buenos Aries and looking for an insider’s scoop on where to eat, check out her blog at www.taxigourmet.com. It’s very interesting.

--Scott Mathis

Algodon Ironworks

I received some photos of the new doors that have been custom designed for Algodon Mansion’s front façade. The ironwork is remarkable, and once the doors have been completely installed, the façade will be nearly complete and Algodon Mansion will be one of the most beautiful structures on Montevideo. That’s saying a lot, because it’s a very beautiful street to begin with. The two new doors are being placed in what were previously windows, which have now been extended to the ground for a symmetrical aesthetic on the ground floor/street level horizon. There will be three, in all, and the doors were designed to match the original ironwork door, which has also been restored to its former beauty. The following pictures show one of the newly installed doors from the interior’s point of view, and then a photo/rendering hybrid of the finished product from the exterior’s point of view. The top image is one we use frequently, and you may already be familiar with it. --Scott Mathis

Hotel Rates in Buenos Aires

Hotel rates in Buenos Aires have risen significantly in just the past few years due to the country’s growing economy and tourism traffic. Our office recently did a study of suite rates of premium 5-star hotels in Buenos Aires to see what the competition is charging. We chose to look at comparable hotels to Algodon Mansion’s 5-star quality suites and amenities, and looked at suite rates from 2005 (when the idea for Algodon Mansion was still just an idea in my head) versus what they go for today. I think this positive illustration says quite a bit about Argentina’s economy. You’ll also notice that all of these hotels have over 100 rooms, and one of them even has over 200. With Algodon Mansion’s boutique status of only 10 very high-end, butler-attended suites, there is no question in my mind that our hotel will have a remarkable reputation for highly personalized services that elevates us above all the rest in Buenos Aires. Here’s what we found, and the following price list is approximated:HotelRateComparison.pdf

Algodon Mansion - Facade Revealed!

The construction tarp covering Algodon Mansion has finally come down. I am personally very proud and excited about this very significant milestone, as it marks the beginning of the homecoming stretch into the finishing final touches. The stonework on the mansion’s façade is stunning, and I am extremely happy with the results. Algodon Mansion’s 1912 architecture beautifully compliments Recoleta’s surrounding buildings. In a recent phone conference update with Gerhard Heusch, our Design Architect, we’ve also been told that in the basement, the kitchen is currently being tiled; in the dining room, the roof work has begun; the steelworkers are starting work on the stair railings; the pillar has been removed from the bar area; stucco work on the ground-floor ceiling has begun; in the suites, carpet and moldings are being installed, as are the custom bookcases; on the roof, the mechanical area (the “7th story”) is being finished; and the Spa roof has been completed. Can’t wait to see the finished product.

A Real Estate Comparison

Here’s a great photo comparison of U.S. vs. Argentine real estate valuation that may put things into perspective for many people. This is more than eyebrow-raising; it’s enlightening, and it’s what we’ve been saying all along. Click the link for an illustration that says a thousand words: Real Estate Comparison.pdf

Personal Update

I am pleased to report that the "bill of sale" for the estate homesites will be complete this week, and as a result we can begin selling the estate homesites immediately. We already have approximately 27 estate homesites that people have reserved, and we anticipate executing those transactions as soon as possible. Regarding our golf course; as you know we started with nine holes and recently began building the back nine. The new nine holes of the golf course have now been completely excavated and shaped, with the fairways, greens, and tees complete. The drainage piping and sprinkler system are now being installed, and grass will be planted within the next 2 months. The complete 18-hole championship course will be open by April/May, 2009. We are working fast over here! That progress alone should add some nice value to the project! We have 300 estate lots for sale (ranging from 1 to 15 acres) roughly averaging about 2.5 acres (1 ha) located on the vineyards, golf course, polo fields and tennis center with views to the mountains. As well as 50 luxury Villa Townhomes with great views of the vineyards, golf course, and mountains, and 12 Tennis Villas (approximately 2,000 sq ft each, and situated in a beautiful 50 + year old olive orchard), which are really nicely located and look over the tennis complex and center court stadium, and are also adjacent to the golf course with more great views of the mountains. As far as the Algodon Tennis Complex goes, we have been working with José Luis Clerc (# 4 ATP in the world from 1979 - 1985) who is now one of Argentina's most recognized and respected sports figures, and was recently featured as an ESPN commentator for the 2008 US Open. He will be operating a tennis academy and bringing exhibition and tournament play to our estate. The restaurant expansion will have a view over the center court (similar to the court set-up in Monte Carlo) so that persons who wine and dine can enjoy the match play from their table. Our project is truly "coming together" and I look forward to showing you the amazing progress in the very near future! As with any project, there have been numerous changes, delays, and problems, etc., but overall I am very pleased with the progress and what the team in Argentina has accomplished. The Algodon Mansion in Buenos Aires is moving forward nicely and will be open in less than 5 months. Get ready to book your rooms!!! The mansion is small (20,000 sq. ft.) but it will certainly be one of the most exquisite hotel properties any of us have ever stayed in (and I make that a promise!) On the next trip down to BA you will see that the scaffolding/cover on the building will be gone and our 1912 Mansion is truly the most beautiful building on the Street. More updates to come!!! --Scott Mathis

Algodon Mansion

“Perhaps the most tangible sign of Argentina’s economic recovery, is its booming real estate market, which has transformed Buenos Aires, the capital, into a construction site.” - The Wall Street Journal I love that quote. Tourism in Argentina is thriving right now, and has been for the last several years. I see it every time I go down there, and my favorite hotels are always almost booked to capacity. Argentina is literally the leading tourism destination in all of Latin America, and had over 4.5 million visitors in 2007. The Argentine Tourism Office says that visitors from the US alone grew more than 35% between 2005 and 2007. I like those numbers! 2.2 million foreigners visited Buenos Aires last year, and Buenos Aires City Tourism Bureau did a study that found foreign tourists prefer four and five star hotels (who doesn’t?), and that 2007 occupancy rates exceeded 85%. Things are looking good for our hotel project. The mansion we purchased is absolutely amazing. It was previously a private residence and is located at 1647 Montevideo Street in the heart of the embassy and luxury hotel district, Recoleta. The Mansion is a magnificent 20,000 sq/ft estate that was built in 1912. It’s a 5-story building, but we added a subbasement during the renovation, bringing it to 6-stories. The architectural team we decided to use for the renovation is headed by internationally acclaimed architect, Gerhard Heusch. He’s got a great portfolio, and I’ve had the pleasure of seeing some of his past projects in person, including The Grand Havana Room in both New York and LA. The hotel will feature 10 luxury suites, a 5-story hanging garden, and rooftop pool, spa, and bar. Watching the completion of this project has been a real experience. These days, I get down there to oversee the project just about every other week. One of the highlights for me has been the construction of the rooftop pool. Wow. It’s going to be truly fantastic. The hotel is also going to have a restaurant featuring South American & French-fusion cuisine, a private dining room with a wine cave and humidor, library bar, wine cellar, and an outside dining patio that features an A-framed glass ceiling. This project has become very personal to me, and I have to say that I’m quite proud of it. With Gerhard’s help (as well as the rest of our incredible work team down there), Algodon Mansion should be opening its doors in December. That’s right around the corner, and we’re all very excited about it. The plan is to have a wonderful New Year’s opening party for our partners and friends. I’m looking forward to it. I’ll be here next week with more about Algodon Mansion…Gotta go, I have work to do! --Scott Mathis

My Trip to Buenos Aires

When I arrived in Buenos Aires in 2003, it was common knowledge that the economy had recently suffered a debilitating blow, that the country had defaulted on its national debt and that the unemployment rate was soaring. Since I am by nature a contrarian, this was part of my motivation for going. Although my expectations were somewhat tamed by media coverage about the economic and social problems, I had hoped to enjoy the city’s charms and the value of its currency which had devalued by about 70% from its previous level. In fact, I was “wowed” to find a vibrant world-class city, full of sophisticated, well-dressed and happy people, historic beautiful neighborhoods with lush green parks and public monuments, wide-open boulevards lined with buildings boasting some of the finest architecture I had ever seen. I was also enthralled with the great shopping… markets…. music…. dancing…. wonderful food, wines and entertainment. I knew then why they call Buenos Aires the Paris of South America, at a third of the price here in the States and an even larger value discrepancy in comparison to the major European cities.

My enchantment with the city prompted my interest to learn more about the local real estate market. The more I learned, the more convinced I became that there was a huge opportunity, that prices were extremely low compared to other leading cities and with the economy and tourism rebounding strongly, many elements of risk had already greatly subsided. I was determined to take action.

But that’s enough for today. Next time I’ll be talking about how my vision has indeed been realized by my companies (InvestProperty Group and DPEC Partners) in the creation of a luxury boutique hotel (“Algodon Mansion”) in Buenos Aires, and then later a very beautiful wine and golf resort (“Algodon Wine Estates”) in San Rafael- the southern heart of Mendoza.

Life is good!

-- Scott Mathis

My First Entry

Here we go- my first blog entry. I’ve been asked by several friends and coworkers; “What’s possessed you to write an online diary?” So first off let me say, a daily “diary” is certainly not my intention in creating this journal. I’m not here to talk about what I had for breakfast this morning (delicious as it was.) I’d like to think of this as a way to share my personal knowledge and experience regarding current and timely investment opportunities with my friends, family, clients and partners. This is also a great venue for me to keep those same people informed of my companies’ latest endeavors as well as the evolution of our projects.

As many of you know, I’ve taken a particular interest in Argentina’s real estate market, specifically Buenos Aires and Mendoza, after remarkable investment opportunities were made available due the country’s economic crisis several years ago. And though these opportunities have been much publicized, I’ve still been asked; “Why? Why Argentina?” I would like to say that my black box, which is fed with copious amounts of charts and data, issued a proclamation that the time was ripe to enter the real estate market there. However, things don’t normally work that way, at least not for me. My determination to enter this market really began as a personal journey, a tourist visit to Buenos Aires in fact, and was gradually transformed by my experiences and what I witnessed firsthand, into a determination to pursue a vision. So, while in the past few years there has been a lot of positive media coverage relative to Argentina’s real estate market, there is a big difference between words and action. Hence, I have used my conviction to take action and enter this market and am currently in the process of turning my vision into what I feel will be a profitable business and investment opportunity.

Next week I’ll tell you a little bit about my first visit to Buenos Aires, and what specifically it was that really clarified my vision and opened my eyes to the amazing opportunities Argentina offers its investors.

Until then…

-- Scott Mathis