Algodon Wine Estates online interactive map

Hello friends. As our websites continue to evolve in tandem with the properties, real estate developments, and businesses that they represent, we are on occasion treated to something truly exciting via online technology. Our new interactive map of the estate’s features and individual homesite descriptions is, in my opinion, a very impressive addition to the site. The system, which is powered by Google Maps technology, illustrates the estate’s geography and has all kinds of easy to use features that make it fun to navigate. If you haven’t seen it yet, you can check it out here.

I personally love Google Maps; you can visit almost any neighborhood in the world. I know the Google satellite mapping of Argentina was only recently added to its website, so the map of Algodon Mansion’s location in Buenos Aries, for example, offers only a basic view, which you can see here. However, I assume that Buenos Aires will eventually have a more detailed mapping, such as we have in New York City. Here’s a Google Maps link to our office in Manhattan. Enjoy!

- Scott Mathis

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

Formula For Success

As I mentioned in a previous post, Argentina’s booming economy and real estate market are presenting unparalleled investment opportunities every day, and are attracting savvy international investors from all over the world, including us. When approaching the real estate market, we felt that an ideal investment sector for ourselves and our investors would be the hospitality sector. I personally feel that identifying underperforming commercial properties and repositioning them into hotel or mixed-use properties is a formula for success. Argentina’s uninterrupted property appreciation has roughly seen a 50% increase in real estate values since overcoming its financial crisis in 2002. So it’s logical to me that, while property appreciation alone may be well worth the initial investment, capitalizing on that investment to create an additional primary source of income should be our ultimate goal. A successful luxury boutique hotel such as Algodon Mansion may potentially generate multiple revenue sources from a single piece of property. That’s good news to me. While the Algodon Mansion will serve as a high-end, private hotel for distinguished guests, we also hope to appeal to the local community with the restaurant, lounge and spa. Our goal in the property’s renewal is to reclaim the old world charm and sophistication of its original 1912 architecture, while at the same time denoting an aesthetic value of modern elegance and functionality. We’re all proud of it. By respecting and maintaining the integrity of the building’s original facade, we believe the finished product will add to the beautification of the neighborhood; attracting a loyal customer base and becoming a travel destination for both the local community and visitors to Buenos Aires. Next week I’ll talk about the name we’ve chosen for the hotel brand, and how we reached the decision to call our project “Algodon.” Have a great week! --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