The History of Riviera Real
2005 - 2008
In 2005, Riviera Real opened a sales office in
the old port of Rocky Point. The Coastal Group
were the sales agents for the development.
Construction was started on a model home and
sales began. Buyers invested about $10 million
dollars in deposits on their purchased
properties.
Subsequently, a dispute arose between prior
owners of the land. Individuals by the name of
Grijalva filed suit against their partners Martin,
and named as additional defendants each entity
or individual that had acquired property in North
Beach, including Playa Dorada, Playa Azul and
Riviera Real. Further construction on the
Riviera Real project ceased.
Unlike the situation with Playa Azul, the
principals of Riviera Real denied that the
litigation involving North Beach had any effect
on their project. Throughout 2007, investors
and potential investors making inquiry into the
status of the project were told that there was a
disagreement between the partners and
construction would begin again shortly. Since
construction never started up again, it is clear
that partner disagreements continued, severely
affecting financing.
In November 2007, an investor discovered the
following:
Old Port sales office had been closed since May
2007.
Ground had not been broken for the structures
of the beach houses, villas or the high rise.
The project is currently fenced off restricting
access to the property and the model home is
not open for inspection.
Per contracts between investors and
developers, the completion dates of the high
rise condominium structure was November 30,
2007. Refunds were to be given to investors if
delivery dates were not met. No refunds have
been forthcoming.
2005 - 2008
In 2005, Riviera Real opened a sales office in
the old port of Rocky Point. The Coastal Group
were the sales agents for the development.
Construction was started on a model home and
sales began. Buyers invested about $10 million
dollars in deposits on their purchased
properties.
Subsequently, a dispute arose between prior
owners of the land. Individuals by the name of
Grijalva filed suit against their partners Martin,
and named as additional defendants each entity
or individual that had acquired property in North
Beach, including Playa Dorada, Playa Azul and
Riviera Real. Further construction on the
Riviera Real project ceased.
Unlike the situation with Playa Azul, the
principals of Riviera Real denied that the
litigation involving North Beach had any effect
on their project. Throughout 2007, investors
and potential investors making inquiry into the
status of the project were told that there was a
disagreement between the partners and
construction would begin again shortly. Since
construction never started up again, it is clear
that partner disagreements continued, severely
affecting financing.
In November 2007, an investor discovered the
following:
Old Port sales office had been closed since May
2007.
Ground had not been broken for the structures
of the beach houses, villas or the high rise.
The project is currently fenced off restricting
access to the property and the model home is
not open for inspection.
Per contracts between investors and
developers, the completion dates of the high
rise condominium structure was November 30,
2007. Refunds were to be given to investors if
delivery dates were not met. No refunds have
been forthcoming.
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| Rocky Point Exposed |
| Be Careful, Be Very Careful! |
DEVELOPMENT INTRODUCED IN 2005
STATUS IN 2008
| RIVIERA REAL |
| Letter to Riviera Real Investors dated January 24, 2008 from the developers of Riviera Real As we have informed you in the past, Khelo has manifested their position in completing their project, regardless of the obstacles that have been presented. investment groups, who will come to bring a new impulse to the business, resulting in the completion of the construction which you are aware of. Meanwhile this occurs and completely understanding your valid concerns, by our decision, we will proceed to elaborate a voluntary document (perfectly valid by law) by which we will guarantee to you that your investment is secure. And given the eventuality that the property and project of Khelo is sold and the mortgage is paid, the condo investors can recuperate their investment. We want you to know and feel your investment will be protected. Respectfully Unsigned Khelo Internacional Developers S. de R.L. de C.V. |
| "I can't believe I bought a condo property that was not owned free and clear from day one." Riviera Real investor |
| "In a conversation I had with one of the developers, I was told I would not be getting my refund." Riviera Real investor |
It is apparent the developers will not be
refunding any monies to investors and
no further development will occur until
the developers can obtain additional
funding from investors - or the
developers are bought out - and the
mortgage is paid off.
The fact that the property had a
mortgage on it was never disclosed to
investors.
The ongoing lawsuit could possibly
affect ownership of the property.
________________________________
According to the accompanying letter
dated February 28, 2008;
the developers claim " ... the land we
own....." when in fact there is a mortgage
on the land.
"... we are preparing the LIEN document,
which we believe will assure the
recovery of funds ..." There is no
assurance that a lien , especially a
secondary lien will recover funds.
"... we inform you that we will not
support individual solutions for the
actions of those that choose to
compromise a rapid solution for all our
condominium investors. ..." This is
clearly a threat to any investor who sues
for return of investment.
"We once again appeal to your good
judgment and request an additional
waiting period..." This stall tactic is
similar to that used on those who
invested in North Beach in early 2000.
refunding any monies to investors and
no further development will occur until
the developers can obtain additional
funding from investors - or the
developers are bought out - and the
mortgage is paid off.
The fact that the property had a
mortgage on it was never disclosed to
investors.
The ongoing lawsuit could possibly
affect ownership of the property.
________________________________
According to the accompanying letter
dated February 28, 2008;
the developers claim " ... the land we
own....." when in fact there is a mortgage
on the land.
"... we are preparing the LIEN document,
which we believe will assure the
recovery of funds ..." There is no
assurance that a lien , especially a
secondary lien will recover funds.
"... we inform you that we will not
support individual solutions for the
actions of those that choose to
compromise a rapid solution for all our
condominium investors. ..." This is
clearly a threat to any investor who sues
for return of investment.
"We once again appeal to your good
judgment and request an additional
waiting period..." This stall tactic is
similar to that used on those who
invested in North Beach in early 2000.
| Participants in Riviera Real Eberardo & Reynaldo Grijalva - Land owners Juan Luis Martin Jr. & Sr.- Land owners German & Estela Palacio - Land owner Scott Poturalski - Sales Agent, Coastal Group Khelo International - Development Company Monte Bartholomew - Developer Richard Sumpter - Developer |
| 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! |
| Visit www.rockypointexposed.com/blog to post a comment. |
| "When our lawyer told Khelo's lawyer that we would start arbitration to recoup our money, he threatened us to be very careful. That only the people that were 'quiet' would ever see their money back and that if we attempted to go legal, we could kiss our money goodbye". Riviera Real investor |
| email letter to Riviera Real Investors dated February 28, 2008 from the developers of Riviera Real February 28, 2008 DEAR RIVIERA REAL CONDO INVESTORS, Pursuant to what we have informed you previously, we are in the process of negotiating with investors who continue with the Riviera Real project. The problems that occurred and continue occurring at NORTH BEACH with regard to the lawsuit between the NORTH BEACH partners has been duly assimilated by the possible project investors, who just as we, noticed that the problem did not involve us to a large degree, despite the fact that eventually it would create an obstacle. Nonetheless, they stated their trust in the project’s development. Unfortunately, the real estate crisis in the United States appeared during these negotiations, which lead possible investors to repose their participation in our project. This delayed these negotiations which we expected to conclude between December 2007 and January of this year. Today we can tell you that we continue with talks geared to settle said participation, because it so happens they are convinced that Riviera Real is, if not the best project in Puerto Penasco, one of the best; therefore, we have a high level of confidence, that this problem will be solved within a three month period and, furthermore, the construction of the building will be restarted by then. We do not know if it was due to bad intentions or misinformation, but we see communications that we did not have the proper projects plans and permits, and that we disposed of enormously large amounts of monies on non-project activity. This situation or assertion is completely false, since we have not taken the sums that are being stated and that we have actually used the majority of said funds for the development of projects plans, administration, permits, the construction of the model home, earth movement and compacting activities, etc. On the other hand, we have seen the concern of some to file legal proceedings against us. In this respect, we wish to reiterate that your investments are safe. In the worst case scenario, the land we own and the amount of the title insurance we have with FIRST AMERICAN TITLE INSURANCE, will return the funds to all those who trusted us and executed sales-purchase promise agreements. To date, we are preparing the “LIEN” document, which we believe will assure the recovery of funds for those that choose not to participate in actions that may jeopardize a timely solution for all condominium investors. We plan to have this initial draft available for your or your attorney’s review, within the next 2 weeks. We intend to solve this problem jointly and therefore, we inform you that we will not support individual solutions or the actions of those that choose to compromise a rapid solution for all our condominium investors. Once the participation of the new project investors has been consummated, we will provide to everyone, the options which we have informed you of previously (refunding the monies or continuing with the project). Due to the foregoing, we once again appeal to your good judgment and request an additional waiting period to solve the common problem. Sincerely, (Unsigned) Khelo Internacional Developers S. de R.L. de C.V. |
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