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March 27, 2025 • 14 mins

Tulum, Mexico has exploded in popularity since the early years of the pandemic. The area’s few Covid restrictions, picturesque beaches and laidback vibes attracted lockdown-weary travelers and helped trigger a real estate boom.

On today’s Big Take podcast, Bloomberg reporters Andrea Navarro and Tanaz Meghjani join host Sarah Holder to discuss the dark side of a pandemic-era development spree in Tulum that has left a trail of ripped off investors, millions of dollars in missing cash and even two bodies in its wake.

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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:08):
This winter, Bloomberg's Andrea Navarro took a trip to Tulum,
a popular tourist destination on Mexico's Yucatan Peninsula.

Speaker 1 (00:17):
On a regular day, the water is an incredible color
of torquoise and weather it's nice almost all year round.

Speaker 2 (00:25):
But what had brought Andrea to Tuloom wasn't the beach,
or the weather or the turquoise ocean. She was there
to get an up close look at what was supposed
to be a luxury condo complex.

Speaker 1 (00:37):
It's just a very thick piece of jungle where there's
no development. There's nothing happening there, and that's where Akela
meant to develop Solemn Skyview.

Speaker 2 (00:49):
There were meant to be about thirty units on this lot,
but when Andrea visited, there wasn't much progress to show.

Speaker 1 (00:55):
So it's just jungle. They were never able to even
start clearing the land.

Speaker 2 (01:00):
Wow, so they didn't break round. They didn't even like
bring a piece of wood to the scene.

Speaker 1 (01:04):
Nothing.

Speaker 2 (01:05):
This development was one of a handful of projects, all
from the same company that promised investors a slice of paradise.
Andrea went to see a few of those sites. While
she was Intulom, there was Solemn Ocean.

Speaker 1 (01:19):
This was supposed to be a thirty unit building, which
of course never got built.

Speaker 2 (01:23):
And there was Solemn Downtown right now.

Speaker 1 (01:26):
We would guess that about sixty percent of the building
was done.

Speaker 2 (01:29):
There was also a Solemn Lagoon and a Solemn laundra,
but only one Solemn was actually completed, Solemn Peaceful. The
Solemns were part of a pandemic real estate boom and
tulom driven by remote workers who were looking to relocate.
But now five years after the start of the pandemic,
for some buyers, that Caribbean dream has become a nightmare.

Speaker 1 (01:55):
From the lawyers, we know that there's hundreds more and
it's not all that they didn't receive their apartments, but
some aren't able to get the titles to the apartments
or they can't sell the apartments. So it's a lot
of different problems that are starting to spring up right now.

Speaker 2 (02:11):
I'm Sarah Holder, and this is the big take from
Bloomberg News today on the show The Dark Side of
a development spree and to loom that left a trail
of ripped off investors, millions of dollars in missing cash,
and even two bodies in its wake. Bloomberg's Andrea Navarro
says that one of the first things that put to

(02:32):
Loom on the radar of international tourists and investors was
its proximity to Cankuhn and to Mayan Ruins.

Speaker 1 (02:39):
Can Kuhn got so crowded over the past few years
that people started branching out and looking for other resorts.

Speaker 2 (02:46):
In early twenty tens, Tlloom's appeal was more boutique hotels
and yoga retreats, while Knkuhn was more big resorts and
a party vibe senor Frogs if you're familiar. It wasn't
until the pandemic lockdowns of twenty twenty and twenty twenty
one that development intulum really started to take off.

Speaker 3 (03:05):
It was one of the places in the world that
had very few restrictions during the pandemic, so it was
kind of a siren call to all of these digital nomads,
all of these people who wanted to be in that
environment and continue to work.

Speaker 2 (03:16):
That's Bloomberg's the nas Mcjohnny, She and Andrea worked together
on the story.

Speaker 3 (03:21):
And I think that attracted a lot of attention from
buyers and from developers, and we were initially looking at
how during the early pandemic days there were so much
demand for luxury apartments that all of these developers came
in and started building.

Speaker 2 (03:37):
Andrea says some of those developers had established track records
working in and around Cancun, but the surgeon demand for
property in Tulum was so intense that it also attracted newer,
less experienced companies looking to take advantage of the moment.
One of those companies was a Keila Development Group, the
developer behind the solemn properties.

Speaker 1 (03:59):
So akle As, a company that we found out was
established in twenty eighteen by three partners, all Mexican, and
they started marketing these developments around twenty nineteen or twenty twenty.
Were not exactly sure of the date, but we do
know that they had six developments in progress at some point.

Speaker 2 (04:21):
Their marketing renderings, which Andrea Antanas saw, shared a luxury
high gloss fuel.

Speaker 1 (04:28):
They really played up the amenities, so they had infinity
pools and yoga classes and fire pits and places where
people could just read in the jungle or take a
class in the outdoor gym.

Speaker 3 (04:39):
Oh they were stunning. Some of them would have private
pools that were connected to each unit. So yeah, they
looked idyllic. Who wouldn't want to live there?

Speaker 4 (04:47):
After seeing that everything about it was a dream, it
was perfect.

Speaker 2 (04:53):
Aaron Norris still remembers the plan for the unit she
tried to buy in Solemn Skyview.

Speaker 4 (04:59):
The development was is going to be about thirty town
homes situated around a man made lagoon that was also
doubling as a swimming pool. It was just meant to
look like a lagoon. It was really beautiful and peaceful
looking these large arched windows that looked out over the jungle,

(05:21):
and it just had a really peaceful and serene feel
about it.

Speaker 2 (05:27):
Noras had been vacationing in Mexico since she was a
child and had spent fifteen years visiting Toulum before she
decided she was ready to buy.

Speaker 4 (05:35):
Initially, I had wanted to buy something that was already built,
but in working with my realtor, she told me, you know,
you've got a better opportunity to get something that's brand new.
It's less expensive when you buy something that's pre built
or through a pre sale. I guess you can pay
over time rather than doing one large lump sum payment.

(05:56):
And As a single income. That was really attractive being
able to space out my payments over time rather than
just throw everything down all at once.

Speaker 2 (06:05):
Norris was sold. She agreed to buy a unit for
just under two hundred thousand dollars, which she negotiated to
pay over seven installments, and as she started sending money,
she started seeing progress.

Speaker 4 (06:18):
The developer sent me videos on a pretty regular basis
showing hey, look we've started clearing the land. And then
a little later, oh, here's an update. All of these
materials have been ordered, they're starting to get delivered.

Speaker 2 (06:31):
But then the updates started to slow.

Speaker 4 (06:34):
Eventually an email came that there was a land dispute
and that I should stop making payments, but that they
felt they were fully within their rights and that you know,
the land dispute would be resolved soon. This would probably
impact the completion date, but that they would expedite things

(06:54):
once everything was resumed.

Speaker 2 (06:56):
Nora says that was the last time she heard from
a Kaylae.

Speaker 4 (07:00):
They would not respond to any phone calls or emails,
just became impossible to get a hold of.

Speaker 2 (07:07):
At that point, Norris eventually found out there was a
reason all her outreach was getting ignored. The real estate
group was starting to unravel.

Speaker 3 (07:17):
She'd found out that one of the developers in the
group had died and his body had been found on
a beach, another one allegedly committed suicide, and a third
has allegedly left the country.

Speaker 2 (07:33):
Norris is one of many people the Akeala development group
left in the lurch. Andrea Antanas interviewed dozens of buyers
and their attorneys. They reviewed sales pitches and lawsuits, and
they estimate the developer sold at least another seventy pre
sale units that they never delivered. It was part of
a pattern of alleged fraud that was far bigger than

(07:55):
the aspiring home buyers and the reporters initially thought what
we know about the downfall of Akela and the recourse
for its victims after the break. Bloomberg's Andrea Navarro and

(08:15):
Thanas mcjohnny have been digging into the dark side of
a pandemic era real estate boom in the coastal Mexican
town of Tuloom. They say that one factor that's made
the boom there more complicated is that land ownership and
bureaucracy in the town can be tricky to navigate.

Speaker 1 (08:31):
The government is sort of a archaic in some ways.
Files are not digitized, the court system is not digitized
one hundred percent, so a lot of processes have to
be done in person, so it's not easy.

Speaker 2 (08:43):
That can make it hard to know who owns what
or when land was bought and sold. There's also been
a long history of land theft in Quintana Rue, the
Mexican state where Tuloom is located. The problem has become
so prevalent in recent years that a reporter asked Mexican
President Claudia Scheinbaum about the issue in early December. She

(09:04):
acknowledged that there's been a pattern of a legal development
in the state and said that she had asked one
of her ministers and the state's governor to look into it.
A land dispute was also one of the problems at
Solemn Skyview, the development where Aaron Norris had purchased her unit.
Part way through development, allegations surface that Akela had stolen

(09:26):
the land from its rightful owner.

Speaker 1 (09:28):
She was an older woman who had bought the land
in the early two thousands with a long term plan
of building a retirement home there. She had never gotten
around to actually developing the land, but she as a
person does. She went and paid her taxes regularly, so yeah,
she did not sign away her rights, and she was

(09:48):
very shocked, she told me when we first interviewed her,
to learn that the land was not officially hers anymore.

Speaker 2 (09:55):
The land dispute was one red flag about Akela, but
Andrea says it's possible, well, the company was already in
other trouble after one of its partners died in a
suspected suicide. His son spoke to the police.

Speaker 1 (10:08):
The police report does say that his son found him
and that when the son was talking to the police,
he told them that his father had become very depressed
because he had lost a lot of money. So there's
no way for us to know for sure that if
one thing that to another.

Speaker 2 (10:26):
Bloomberg reached out to the partner's son through his relatives
and a phone number that recently belonged to him. He
could not be reached for comment. Andrea says it's hard
to know whether a Kayla's developments were scams from the
start or if the company just got in over its head.
After all, they did deliver one building, But if the
allegations of land theft are true, that points to shadier origins.

(10:49):
What did the disappearance and the deaths of these developers
mean for the people who had bought homes from them?

Speaker 3 (10:55):
For a lot of them, it meant that there was
nowhere they could turn to find answers. You talk to
a lot of people who went through lawyer after lawyer
after a lawyer to try to get some clarity and
some understanding of what had happened, and I think many
of them are still kind of mired in the legal
process of trying to figure out what comes next and

(11:17):
how much money they can recover.

Speaker 2 (11:19):
What kind of legal recourse do they have.

Speaker 1 (11:21):
It seems like they don't have much. I mean, from
what we've heard, they've been chasing these lawsuits for years now.
And it's also been a very slow game for them
because they didn't really find out about the deaths until
much later. Then when they happened, the office stopped responding

(11:42):
to text and messages over the course of several months,
and so I think that that's what's been the worst
thing for them, is just trying to figure out what happened.
But after they did, it's been unclear for them, like
what even to do because there's no company to sue anymore.
So it's it's weird. They don't really know what to do.
They've gone to several agencies in Mexico and some of

(12:05):
them have even gone to the FBI, but they haven't
had any help. It doesn't seem like there's much hope,
to be honest.

Speaker 3 (12:16):
Another piece of this that I think is really interesting
is that all of this is kind of coming to
the surface now. And one lawyer that Andrea spoke to
mentioned her hypothesis that all of these units were purchased
around the pandemic and the delivery dates were around now

(12:38):
in the last year or so. So now this lawyer
is hearing from a lot of people who went through
these experiences, and yeah, it's all coming to light now
because now is when they were expecting to receive their homes.
So I think we've uncovered some of this. It's really
difficult to say how many people were impacted by this.
It seems like this is going to contin and you

(13:00):
to be uncovered as time goes on.

Speaker 2 (13:02):
In the meantime, other projects have raised concerns. Some developers
didn't have soil mechanics studies, which are crucial for building
around Tulum. Others didn't have adequate planning or construction permits.
Tanas and Andrea spoke with one lawyer who estimates that
over the past four to five years he's seen more
than one hundred clients in the area who've had problems

(13:24):
with developers delivering on their promised units. Is there any
indication that buyers are now staying away from Tulum because
of stories like this?

Speaker 1 (13:34):
I don't think so. I visited in February, and the
same as when Tana's visited, construction is just insane. It's
still going on. From what we know. People are still
buying and the problem is, yeah, that they won't find
out what happens until the delivery date comes by, whether

(13:54):
they're getting their apartment or not. So maybe a few
years down the road or even a few months down
the road, people start hearing about these scams more often
and start being more cautious. But I don't think that
we're there yet.

Speaker 2 (14:13):
This is the big take from Bloomberg News. I'm Sarah Holder.
This episode was produced by David Fox. It was edited
by Tracy Samuelson and Danielle Balby. It was fact checked
by Audre Anatapia and mixed and sound designed by Alex Sugiura.
Special thanks to Henry Baker. Our senior producer is Naomi Shaven.
Our senior editor is Elizabeth Ponso. Our executive producer is

(14:35):
Nicole beamsterbor Sage Bauman is Bloomberg's head of podcasts. If
you liked this episode, make sure to subscribe and review
The Big Take wherever you listen to podcasts. It helps
people find the show. Thanks for listening. We'll be back
tomorrow
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