Ventures
ALTERNATIVE LATIN INVESTOR SPEAKS WITH
ELEMENT-360 FOUNDER, CHAD MARTIN
How did you get become an expert in second home real estate located in emerging markets? Over the last decade my business partner, Lisa Sharpe, and I have done research and marketing work for a number of developers including the largest international second home developer in the world. . Our track record is built upon providing comprehensive services representing $10 billion in resort development revenue across the Western hemisphere. We identified an opportunity to improve the development process and in response, created Element-360, a research based, real estate services company providing insight, leadership and results to a wide range of clients. In concurrence with the United States economic downturn, E360 recognized a demand for research based services in the emerging markets of Latin America and the Caribbean. Our projects initiated in Mexico and quickly expanded into Panama, Costa Rica, Honduras and the Caribbean resulting in a $210 million portfolio of affordable second home projects. What kind of companies are you working with? E360 is currently working with financial institutions, private land owners and real estate developers of ranging sizes. Our current client list includes one of the largest investment banks in Costa Rica, large land owners in Mexico and the Caribbean as well as developers in Panama. We have supported independent projects and boutique brands as well as the internationally recognized branded real estate offerings including Starwood, Four Seasons and Rosewood.
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What has been driving demand for your business to date? In the past, E360 has seen significant demand for market research that is now transitioning into the execution of sales and marketing. Clients requested our research services in an effort to secure financing and validate product, pricing, phasing and target markets. Currently, we have seen an increased demand in marketing strategies and execution. What separates our business practice from other real estate companies is that every recommendation is market driven based on facts. We put a strong emphasis on understanding what product is moving at what price and to whom before we ever spend a marketing dollar. We achieve this by surveying the competitive landscape and running statistical demand analysis. What trends are you seeing in second home markets? E360 recently completed one of the largest existing second home owner surveys. In that survey, we discovered the priority of attributes and amenities owners prefer. One trend that was identified is the high value on views. The quality of real estate with a view ranked more important than health and wellness facilities or capital heavy amenities. Another trend, which isn’t surprising, is affordability. Given market conditions and the availability of a strong value proposition, buyers know they can expect an affordable option. Repeatedly developers get focused on the price per square foot value ratios in an effort to better understand profit margins, however the consumer may have an absolute price point and more flexible on the square footage.