Attendees at this week’s International Real Estate Investment Forum in Toronto heard about a new deal in Brazil.
Brazil is now a middle class country. And it’s bursting with millionaires. More and more Brazilians can afford to retire to chic beach cities like Joao Pessoa.
Surrounded by miles of beautiful beaches, the weather’s warm and sunny year-round. Roughly 75 miles from Recife and 110 miles from Natal, the city is one of the oldest in Brazil’s Northeast.
Today, this is where many Brazilians retire young, vacation and buy second homes. In particular, the city is popular as a retirement destination for senior civil servants.
That’s good news for the businesses of Joao Pessoa. As more of these wealthy retirees move here, the city’s businesses have more customers. And there’s more demand for services—like dentists and cardiologists.
There is a SERIOUS shortage of office space in the city and it’s only going to get worse.
The city has three square miles of forest, providing a green backdrop to almost 25 miles of beach. The city’s protected forest limits development here. Cabo Branco is a prime residential area. This exclusive neighborhood borders the boardwalk. Cabo Branco sits between the ocean and the forest, on a thin triangle of land. You’ll find the city’s nicest restaurants and boardwalk kiosks here, and uncrowded stretches of beach.
Sitting just above Cabo Branco and on an elevated piece of land is the area of Altiplano, a high-end residential neighborhood with a mix of single family homes and luxury condos.
The municipality of Joao Pessoa recently relaxed planning regulations in Altiplano, and will now allow mixed commercial, resort and residential projects to develop here. A master plan calls for residential development to house 40,000 people. There are also plans for hotels, shopping malls, private schools and medical services.
Brazilians like to live near where they work and work near where they live. Office space in this location will be in hot demand. And this will be a seriously high-end area. Condo towers under construction in this neighborhood come with price tags of 500,000 reais ($315,000) and up…and amenities that include private bowling alleys, multiple swimming pools, and high-tech gyms.
My broker contact on the ground, John Curtis, knows all about the office shortage. He has been searching for new office space for himself for the past few months. Decent offices in good locations are snapped up within days of becoming available. Renting an office is a competitive business…if you are the tenant, that is.
John joined us in Toronto for the International Real Estate Investment Forum. He came to give us an overview of the market in his adopted city (John is originally from the UK) and also share his story about his search for office space.
And he also came armed with a very special profit opportunity that could yield up to 14% from a corporate tenant…or a cardiologist.
John shared a sneak preview of a new luxury office tower that a Swiss developer is getting ready to launch in the heart of Altiplano. This group already has two upscale residential towers under construction in this neighborhood. Construction and finishes will be top end.
Office suites will be launched with prices starting from just $99,500. Attendees at the “International Real Estate Investment Forum” (and RETA members of course) can get in before the local launch. And there’s a discount of 5% for those that reserve the first 15 units.
Editor’s note: You can get your hands on John’s presentation from this conference in Toronto and get the specifics of the deal when you listen to the recordings that were made of the Forum. Buy them here.