A new $1 billion condominium development is underway in Rocky Point, a popular beach town near Phoenix [5ce14167]. The development comes at a time when the town's tourism industry is heavily influenced by various factors such as the state of the U.S. economy, border politics, and cartel violence. The pandemic has also had a significant impact on Rocky Point, as the closure of the border affected tourist inflow. Despite concerns about border violence, Hector Vazquez, the owner of Las Palomas Resort, believes that the state of the U.S. economy plays a more significant role in attracting Arizonans to Rocky Point.
Rocky Point, also known as Puerto Peñasco, has long been a popular destination for Arizonans seeking a beach getaway. Its proximity to Phoenix makes it an accessible option for residents looking for a quick vacation. The new $1 billion condominium development aims to capitalize on this demand and provide luxurious accommodations for visitors.
However, the success of the tourism industry in Rocky Point is closely tied to external factors. The state of the U.S. economy plays a crucial role in determining whether Arizonans choose to visit the beach town. When the economy is strong, people have more disposable income and are more likely to spend on leisure activities such as vacations. On the other hand, during economic downturns, people tend to cut back on non-essential expenses, including travel.
Border politics and cartel violence also impact the tourism industry in Rocky Point. The town's proximity to the U.S.-Mexico border means that any changes in border policies or perceptions of safety can affect tourist inflow. Concerns about violence associated with drug cartels have deterred some potential visitors from venturing into the area. However, Hector Vazquez believes that these concerns are often exaggerated and that the state of the U.S. economy has a more significant influence on Arizonans' decision to visit Rocky Point.
The COVID-19 pandemic further exacerbated the challenges faced by the tourism industry in Rocky Point. The closure of the border between the U.S. and Mexico restricted travel and significantly reduced the number of tourists visiting the town. As travel restrictions are gradually lifted and the pandemic situation improves, there is hope for a revival in tourism in Rocky Point.
In addition to the condominium development in Rocky Point, Toll Brothers and Canyon Partners Real Estate have formed a joint venture to develop Navona, a 400-unit luxury multifamily rental community in Mesa, Arizona [5ca123b9]. The project has secured a $78 million construction loan from Bank OZK and will be managed by Toll Brothers Apartment Living. The community will offer one-, two-, and three-bedroom apartments with high-end finishes and amenities such as pickleball courts and a resort-style pool. This is Toll Brothers' sixth multifamily community development in Arizona.
These new developments in Arizona highlight the ongoing growth and investment in the real estate sector. Both the condominium development in Rocky Point and the luxury rental community in Mesa aim to cater to the demand for high-quality accommodations in popular areas. As the tourism industry recovers from the impact of the pandemic, there is optimism for a resurgence in tourism in Rocky Point and increased demand for luxury rentals in Mesa.