What’s Up With The Pedregal?

It’s turned into a hot rental area

The Pedregal is the name of the ritzy titzy housing development on the hill behind San Lucas. It’s perfect real estate land, as it is hilly so everyone gets a view, and the land is very stable, so homes can be built cliffside. Even though it looks as if homes perched on the edge will slide down the hill like a childs’ sled in the snow, they are built on bedrock and aren’t going to come loose easily.

So the Diaz Rivera family owned the land originally, and Manuel Diaz Rivera, who moved here from Mexico City in 1971, had the vision to sub divide it, selling individual lots after installing the electricity, water and sewer. And oh yes, those gosh darn cobblestones that everyone loves to hate. They’re quaint, they do the job of a road, but they do rattle the gold right out of your teeth.

From even a few hundred yards up the hill, you can see the town and the marina and the deep blue ocean laid out in front, and top shelf dwellers have views to China. So, starting in 1975, lots went on sale, and the rest is history. Today the Diaz Rivera family is still active, although they have sold nearly all the lots. Now they own a real estate company and are involved mostly with re-sales.

That brings us to what’s going on in the Pedregal today. Today the development is run by the homeowners association, with a pretty slack hand. The HOA keeps it clean, keeps it running, and even built a desalinization plant, but they don’t use their power of governance to tell their homeowners how to run their households.

For that reason, and because of the close- in location, the Pedregal has become popular with short term renters. Although the hotel association tries, nobody has been able to stop the homeowners from making buckets of money by buying and building six, eight, even 10 bedroom homes, and renting them out. The renters are entire extended families, company retreats, destination weddings, and any other clump of vacationers who want to pile into one house and party together. Owners of these homes are doing very, very well, and the neighbors don’t appear to mind the noise, nor the commotion these renters’ presence cause.

Which brings us to who is building which kind of homes now? After 40 years of development, there is more re-construction than construction going on, with dated homes, which were fabulous in their day, being brought back up to fabulous again.

There are a handful of builders plying this fertile ground, but one which just completed one of the largest, most over the top homes is Stellar Custom homes. This was a complete, almost from the ground up remodel which turned a 30 year old Mexican home into a modern house/hotel now spread out over two lots. Most of the Pedregal homes have great views, but this one is perched right on the cliffside, and if you step off the balcony you would drop about seven or eight stories right into the Pacific Ocean. The view is breathtaking.

The cost is $6.5 million, it has seven bedrooms spread over four floors, and can be a cash cow if rented short term. Check out www.stellarcustomhomesloscabos.com for other homes in the Pedregal, drive around and call right off the signs. As with every resort, there is some churn, so there’s always something for sale.