You could say the global economic crisis has claimed a much-trumpeted hotel project in Mexico. Development of the Trump Ocean Resort Baja, a luxury condo-hotel in Mexico's northern Baja Peninsula, has reportedly gone belly-up, leaving several investors out of deposits totaling more than $32 million.
Trump Ocean Resort Baja was a joint venture of Donald Trump and Los Angeles-based real estate development firm Irongate Development.
The Associated Press reported that investors were told last month their money was spent and they would not be getting any of it back.
A Los Angeles-area businessman who had planned on purchasing four units in the Trump property lost a deposit of more than $1 million, according to the AP.
Development of Trump Ocean Resort Baja was announced in the fall of 2006.
The property was to have had 526 rooms in three towers on cliff-side real estate in Punta Bandera, some 30 minutes by car south of the border with San Diego. Units were priced from the mid $200,000s to more than $1 million.
The collapse of Trump Ocean Resort Baja is another major blow to Mexico's Baja region, which has been hit hard by the collapse of the U.S. real estate market.
During the last few years, U.S. investors have flocked to Mexico in search of vacation homes and investment properties as major U.S. banks and mortgage lenders began offering title insurance and mortgages in Mexico.
The Mexican government estimated foreign investment in Mexican real estate at $20 billion last year, up from $17.6 billion in 2005.