Translation.

                 Guaymas, Sonora.  May 18, 2005.

GUAIMAS TOWER

LA POSADA  DE SAN CARLOS

 1. STRUCTURAL EVALUATION

                 a)    The GUAIMAS TOWER built by EL BAVISO S.A., a Mexican development corporation, subsidiary of the Caballero Real Estate/Tourism Group,  is a 7 stories building with 62 beach apartments under condominium regulations,  located by the Paradise beach of the Sea of Cortes,  in the area of La Posada de San Carlos complex, in the middle of downtown, is two blocks away from a shopping plaza, restaurants, bank, and a 18 hole professional golf course  It is 5 blocks away from the San Carlos Marina, in San Carlos Bay, Nuevo Guaymas, Sonora, Mexico, 85506.

                 b)    This building is separated by a beach swimming pool from another 3 stories YAQUI BUILDING  built by Promotora San Carlos S.A., a sister subsidiary corporation of the Caballero Real estate/tourism Group, which has 38 beach  condominium apartments. Both buildings adding to a total of 100 beach condo units.

 c)         I have been asked to prepare an actual structural evaluation and analytical diagnosis on the GUAIMAS TOWER as is,  and my  opinion as to the possibility of remodeling and modernizing it to convert it to a new Beach residential apartments condominium operation:

2.     MY STRUCTURE EVALUATION:

 a)        OCULAR INSPECTION.  I made an exhaustive personal and ocular inspection on this used tower, and reviewed the original architectural and construction plans, (I still keep a set of them), enriched by the fact that I was part of the human team who supervised the original  construction.   The foundation design of the structure satisfactorily responded to the proposed calculation hypothesis.

 b)         LEVELING. Using the proper equipment, a topographical group reviewed differential levels in each of the building floors and likewise verified the outside verticals in the building corner edges, within all safety margins in the plumbs.                                                                                

        c)   SAMPLING.  Each of the 7 floors was inspected and samples were taken on different columns, beams, floors and roof, after the plaster was removed.  The check up was extended from bathrooms tiles to the external concrete structure reinforcement elements.

 In certain cases I factually verified by special perforations made to the concrete structure until the reinforcement steel was reached  to  evaluate the  corrosion status. These holes were refilled thereafter and used plaster named “Embeco”, of special application in this cases.

         d)   FRAGILITY INDICATORS were likewise verified, such as Aluminum doors and windows frames to evaluate maladjustments or broken glasses in the structure movements.   

        e)     INSTALLATIONS.  The building has not been in operation to have it available for a contemplated rehabilitation program, but anyway, I inspected the water and sewage pipes, the electricity and telephones wiring, which are very used.   The elevator is in similar condition.

        f)                   OUTSIDE.  The white sandy beach adjacent to the building is not in use, the swimming pool loose and the green decoration is not maintained.

         g)    THE ACCESS.  There is access to the main four lane Scenic Boulevard and to a side Villa Hermosa street now closed to the public. 

3.     MY DIAGNOSIS:

 The used structure of the seven floors, 62 condominium apartments GUAIMAS TOWER,  built with reinforced concrete, including its foundation:

         ARE IN GOOD CONDITION. REHABILITATION IS QUITE FEASABLE AND A NEW OPERATION, IN MY OPINION, COULD HAVE A USEFUL FUTURE LIFE OF NOT LESS THAN 30 YEARS.

4.     REHABILITATION RECOMMENDATIONS:

 a)                  THE BUILDING rehabilitation, I recommend, should be contracted with a team of experienced rehabilitation construction engineer, architect and decorator, to review the individual apartments space and the other building spaces use, renovating it to a first class quality product in a modern combination of settings, furnishings and colors, in a similar style to the successful Puerto Peñasco condominium buildings.

 b)                               THE IMPROVEMENTS, I recommend,  should use all new piping, cables and  elevator, including close circuit security gate television, new green areas,  remodeled swimming pool and  beach palapa and  good road entrances. 

 Respectfully,

Pablo de Garay y Coca,

Land and Marine Engineer, Appraiser and Consultant.

Paseo Alvaro Obregon 210-Bis, Colonia  Miramar

Heroica Ciudad de Guaymas, Sonora, México 85450

pablodegaray@prodigy.net.mx