Ep. 24 Jaime Fasja - Mexico City, Mexico

Global Real Estate Dealmakers

While this episode’s guest, Jaime Fasja, has a family background in real estate dating back 50 years, he crafted his own way to the highest echelons of retail, hospitality, and industrial real estate investment & development across Mexico and the Caribbean. The 180-person firm that he started from scratch in 2012 and now leads as co-CEO, Thor Urbana, owns assets in 20+ locations, primarily consisting of lifestyle retail centers and luxury hotels. Last week, Jaime and his team opened their latest project, the Ritz-Carlton Mexico City, adding to their roster of hotels featuring such flags as Thompson, Montage, and Four Seasons. As you will hear, Jaime has experienced both pleasant surprises and acute challenges since the start of COVID as he navigated temporary mall closures, pandemic safety protocols, leisure travelers from the USA, and new acquisitions. These aspects notwithstanding, Thor Urbana has emerged stronger than ever from the past 20 months and is ready to continue a steep growth path in the years ahead.

0:42 – Episode Overview

05:50 – CAREER FOUNDATIONS: The Ascent of a Dealmaker

06:04 – Family Real Estate Background and Education

07: 48 – Reasons for Business School

08:57 – Mexico’s Historical Lack of Institutional Capital

10:35 – Relationship with Co-Founder Jimmy Arakanji

12:36 – Steps of Creating Thor Urbana

15:22 – Focus on Retail vs. Hospitality

17:52 – Selection of Partners

19:53 – Leveraging Thor Equities Resources

23:12 – Culture at Thor Urbana vs. Thor Equities

25:46 – Co-CEO Responsibilities

27:44 – Expansion into Other Countries

30:23 – Greatest Challenge at the Moment

32:00 – MAKING THE MARKET: A Research Perspective

32:09 – Real Estate Comparison of Inland Cities vs. Coastal Markets

39:25 – Riviera Nayarit News

41:32 – Mexico City Luxury Hotels

46:39 – Mexico City Rate Increase

47:48 – Domestic and International Guests

49:33 – COVID’s Effect on Mexican Lifestyle

52:44 – Lender Discussions During COVID

57:15 – Pandemic’s Effect on Lease Structure

58:43 – Recent Acquisitions Activity

1:02:54 – Deal Competition

1:04:28 – POLITICIANS AND ATTORNEYS: Bureaucracy and Red Tape

1:04:40 – Pending Legislation Affecting Real Estate

1:06:34 – Entitlement and Permitting

1:08:57 – Legal Action for Title Claims

1:10:53 – Property Taxes

1:12:21 – Frequency of Litigation

1:14:50 – FINANCE AND FORMULAS: The Economics Behind the Deal

1:15:28 – Discovery of Opportunity

1:18:34 – Construction Timeline

1:20:21 – Equity vs. Debt

1:21:31 – Choice of Ritz Carlton as Flag

1:23:39 – Fee Structure Negotiation

1:25:40 – Ritz-Carlton Compared to Comp Set

1:27:54 – Unique Amenities & Technology

1:30:47 – Planned Hold Period

1:32:30 – TOURIST IN YOUR OWN TOWN: How to Spend Three Perfect Days

1:32:36 – To-Do List

1:35:26 – First Time Visitor Tip
Go to KyleNaye.com for full show notes and more info.