Rocky Point Exposed
Be Careful, Be Very Careful!



















This real estate development was marketed to the public in 1999 using full page, four
color ads in local Rocky Point newspapers and magazines. A luxurious sales office
was set up on Fremont Boulevard, managed by Estela Palacio, wife of one of the
North Beach property owners. Scale models of the development were shown and
expensive, glossy sales brochures were distributed to potential investors.    

Emphasis was placed on the purchase of condominiums identified as Kasitas, and
beach front lots called Las Gardenias and Sunset Beach, at introductory
"pre-construction" pricing -- provided full payment was made at the time of purchase.
Several investors used equity in their homes as a means to acquire property in the
development.

Documents were produced by Mrs. Palacio's sales team indicating a level of
legitimacy to the development. (See above sign.) Sales contracts were provided to
buyers with promised delivery dates for condominiums and lots clearly specified.
Bank trust fees were quoted at $1500.00 - $2000.00.

While sales of the properties were ongoing, and delivery dates were promised (with
penalties to be paid by the seller for late delivery) later investigations revealed that the
following was never disclosed to potential investors:

A lawsuit had been initiated disputing  ownership of North Beach property, yet sales
were continuing.

The sole administrator, and the signatory of agreements on behalf of Barlovento S.A.
de C.V. and Penasco Country Club S.A. de C.V. never had authorization from the land
owners of North Beach to sell the properties. Yet properties continued to be sold, while
sellers collected over $2.5 million dollars from investors.

Further investigation suggested that the signatory of agreements and the corporations
listed above never existed!

A grand opening, attended by many local politicians and dignitaries was held
celebrating the beginning of construction of Kasitas and the first hole of the golf
course. During construction, the selling corporation advised investors that lots and
condominiums would be completed shortly and requested bank trust fees ranging
from $6000 - $8000. When questioned by the investors about the discrepancy in fees,
the sellers did not respond and no monies were sent.

Promised delivery dates on the condominiums and lots had come and gone. All
construction was halted. The sales office on Fremont Boulevard was closed.
Investors repeatedly sent letters to the sellers (the corporations) requesting
information regarding delivery of property and status of the development. The
corporations responded with statements that were clearly lies.

The investors began requesting refunds from the sellers. Requests were returned as
"undeliverable". The investors hired lawyers who proceeded to investigate and
subsequently discovered potential fraud.

Since the selling corporations appeared to be non-existent, negotiations between the
investors and the property owners of North Beach, the Grijavlvas, Martins and
Palacios began in 2003 (after resolution of the first law suit) for refund of monies or
bank trusts. These negotiations, mediated by Raul O'Farrill, lasted almost three years
and ended in 2005 with no resolution.  It can be concluded that the sellers/property
owners had no intention of completing the development and over $2.5 million dollars
of investors money has disappeared.

A new lawsuit was initiated in 2005 between the Grijavlvas and Martins regarding
ownership of the land identified as North Beach. This ongoing lawsuit precludes any
further development in the area, costing past and current investors in other
developments including Playa Azul, Riviera Real and Playa Dorado, many millions of
dollars, while casting a black cloud over future real estate transactions in Rocky
Point. Despite this fact, the real estate community has done everything in its power to
shove this issue under the rug.

                 
Kasitas
Sabina Hotel
North Star Condominium
Paquime
Single
Family
Golf
Course
Homes
Las Gardenias Ocean View Lots
Six
Jim Fazio
Golf
Courses
Status of North Beach As of 2008
Kasitas
Six Jim Fazio Golf Courses
North Beach as advertised

The History of North Beach
1999 - 2008
Las Gardenias beach front lots,
         homes and streets
"I can't believe how stupid I was investing
in North Beach without doing my
homework."
                   North Beach investor
"I took a second mortgage on my house to
invest in North Beach. After eight years,
I've got nothing to show for my investment."
                   
                        North Beach investor

The following statements appeared in an unsigned article printed
in the January, 2008 issue of the Rocky Point Times,

"Some readers may be aware that a golf course designed by Fazio was built
during this period, as were streets, lagoons, a water desalinization plant,
and a water treatment plant. The full electrification of the property was
also accomplished during these difficult years."

As of 2008, there are no golf courses, no lagoons, no streets!
Desalinization and water treatment plants were never completed.

It was later determined that the author of the article was Raul O'Farrill.
He was the mediator who was intimately involved in unsuccessful
negotiations between North Beach investors and landowners.
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Since its introduction in 1999, investors have never received title or trust to the property and
have, for all intents and purposes lost their entire financial investment in this development.
A Rocky Point
development
gone bad!

In late 1999, this private golf, polo and yacht club development, located in the area known
as NORTH BEACH, was offered for sale to the general public. The area of approximately
7500 acres is located 15 miles east of the town of Rocky Point. Only a small portion of this
area known as the development of North Beach was offered for sale at that time.

Advertised as part of the largest master planned development in Rocky Point, it offered a
host of amenities which included: golf course lots, private condominiums (KASITAS), beach
front lots and homes (LAS GARDENIAS AND SUNSET BEACH) , a multi-unit condominium
(NORTH STAR), a large hotel (SABINA),  shopping centers, an RV park, SIX JIM FAZIO
designed 18 hole golf courses, equestrian trails, a 200 slip full service marina, yacht club
and a 1000 acre lagoon with island properties, as well as many other features.

Pre-construction pricing was offered to investors as an incentive to purchase lots and
condominium homes at very attractive rates - provided full payment was made up front.
Investors provided over $2.5 million dollars in payments to the North Beach developers.
North Beach development

Participants in North Beach

Juan Luis Martin Jr. & Sr.- Land owners
Eberardo Grijalva - Land owner
Reynaldo Grialva - Land owner
German Palacio - Land owner
Estela Palacio - Sales Manager
Raul O'Farrill - Attorney/Mediator
The information herein has been obtained from various sources  and is not guaranteed by rockypointexposed.com. Prospective investors are advised to
conduct their own investigation of the information contained herein before proceeding with any real estate investment in Rocky Point (Puerto Penasco).

The information contained on this site  is not legal advice. While the highest standards were used in compiling this information it should not be considered legal
advice and all legal questions should be handled by appropriate representation. Copyright rockypointexposed.com. All rights reserved.  Web Hosting by Yahoo!

"The North Beach project is
a travesty"

Kent White, President,  (AMPI)