Developer Profile

ThinkPanama.com has handpicked each developer we work with, based on certain criteria mentioned in this article. We aim to be and consider ThinkPanama.com THE AUTHORITY on quality developments and developers in Panama.

PROCASA


My Research

“The real estate boom in Panama among other factors has caused a rise in the price of local construction material. Many developers have gone back to their buyers to demand more money in order to fill the void. Procasa, rather than soil their reputation, completely re-engineered an entire project from the ground up, utilizing new technology, cutting costs, and significantly reducing their profits in order to deliver the expected quality at the agreed-upon price. They understand that the long-term success of Panama depends on precise, thoughtful investment strategies across markets, not some condo flipping fad.” ......

James Hickman, Black Knight Group

If only those were my words! They kind of say it all, don`t they? They imply an integrity and commitment above and beyond what you find in most business transactions, nowadays. Reading those words certainly inspire a confidence that is hard to create in this cynical heart. Any company that would be that true to its word must be trustworthy.

In fact, try as I might, I could not find anything negative to report about PROCASA or its Director, Arquitect Isaac D. Mizrachi. Nope, PROCASA, otherwise known as Proyectos, Construcción y Administracion, S.A., seems to have only a stellar reputation. Not that I was looking to disparage their reputation in any way...I`m just a writer who likes to tell things like they are. It just so happens that beginning quote sums up well what I found in my research.

From their website you can learn a lot about this developer and their projects – both past and present. I like this blurb:

“PROCASA, a family owned company with more than 8 years in the Panamanian marketplace, and more than 2000 new homes delivered, is directed by the well-known architect Isaac Mizrachi, who has more than 35 years of experience in the field of construction. Architect Isaac D Mizrachi, is several times winner of “Best Architectural Works” by the Panamanian Society of Engineers and Architects and his works have been awarded by different institutions and architectonic associations.

As well, Architect Mizrachi is in charge of the designs of all the projects of the company. Practical and functional floor plans, avant-garde and good taste architectonic designs, good quality materials, all these details characterize Architect Mizrachi developments, and these details are the result of years of experience and an incomparable trajectory in the field of architectural design and construction.”

The bio goes on to list in resume or Curriculum Vitae format the exact qualifications of Mr Mizrachi. He is one qualified architect! His illustrious career began in 1965, and in that time he has been General Manager, Partner or both to no less than twelve companies. He has been the President of PROCASA since 1997.

PROCASA also describes themselves as,

“...a family owned company, well-known in the Panamanian marketplace as a solid and reliable company with proven experience in sales, construction and architectural design, supported by the 30-year architectural expertise of Arq. Isaac D. Mizrachi who designs all our projects. We have delivered more than 2,000 homes to satisfied customers in less than eight years. We currently have seven new projects under construction, and more in development. PROCASA provides each customer all the facilities and amenities of modern life surrounded by the best environment for the family. Our projects offer you: the best locations - only the most suitable neighborhoods of Panama City Panama Bay, San Francisco, Bella Vista, El Cangrejo, El Dorado ; complete social and sport areas for every member of the family; excellent architectural design and floor plan distribution; and safety features. In other words, a profitable investment.

...PROCASA has been developing and building homes for years. As a large and established construction company, we can pass along savings and values directly to the consumer.”

So there you have it. A reputable company with proven experience and follow through. I find it significant that the last statement “we can pass along savings and values directly to the consumer” fits with the the independent quote that began this profile, “reducing their profits in order to deliver the expected quality at the agreed-upon price.” Clearly the company`s vision and reputation are the same. A company that does what it promises? Whatever will they think of next!?


My Interview

But you know, all the above was still not enough for me. I had to know more. Thus, I had the pleasure of meeting and interviewing Isaac Mizrachi`s son, Elias Mizrachi. He told me about the 12 projects they currently have in progress. When I asked which he was most excited about, he told me frankly, “All of them”, explaining that they were all so different, and he was truly proud of them all.

Pressing further I learned of the apartments going up in the city center, right in the middle of it all, yet with peaceful views of a park. I heard about a project in the “Zone”, Albrook, which is unlike anything I have seen in Panama, and will include a clubhouse with all amenities. Not only that, the views and quiet of that area are complimented by the unusual brightness of the design, due to the many windows that adorn the condos.

One of the most interesting projects I learned about is what they call a Condo-Hotel – set to be the first luxury business hotel in Panama. Two years in the making, this project will feature a full-level spa unlike any other currently found in Panama, and is “geared to business travelers, including investors.”

I guess with such a wide variety of projects, it is only logical there should be a broad range of clients. In fact, I received a similar answer when I asked about the typical profile of Procasa clients. “We have North Americans, Venezuelans, South Americans, Europeans, and a high percentage of Panamanians, as well.”

It was then that I asked him the all important question, " What makes Procasa stand apart from other developers?” He replied, “We still have the human part of the developer. It`s very present. Meaning that yes, we like to make money, but we also always think of who is going to live in the unit. Having that in mind, we pay attention to a lot of detail in the design, in what we offer in terms of amenities and quality. We`re here to stay, so the quality and the product is very important to us.”

Question and Answer Time

In fact, I peppered Elias Mizrachi with questions, which he graciously answered. Here are some of the most interesting:

What are some of the challenges for a developer in Panama?

“Selling at a fixed price in a volatile market.” He explained that the way the costs of materials is rising most up 100% in the last year makes it very difficult to set a price that is good for all, and stick to it. “It`s a delicate and complicated balance.” In Panama most contracts for new developments have a clause allowing a developer to raise the price by up to 8% to buffer cost increases. In fact, Mizrachi explained, the banks themselves want this clause in place because they want their customers, the developers, to be healthy, too. It seems to be a truly challenging task - profit versus outlay; not selling too low; rising price of materials and demand; figuring out how much to charge, while allowing a buffer to volatile market and rising prices.

So what is the solution?

“Developers could be more responsible in the way they sell, to the speculative market. Speculation is what brings prices up in a way that is not sustainable, and then you create something that is not true. ...if you are speculating the prices go up, and that raises prices for other developers, for everyone, including the buyer. Some developers are responsible for this.”

Is Procasa playing this speculation game?

“No. We`re very conservative in that sense.”

Do you feel there is a "bubble" as many people on the streets are saying?

“I would be worried if nothing of what I`m going to mention was happening: The famous expansion of the Canal. The tourism increase. Cruise ships. Infrastructure improving, making a better city, better country to live in...the beaches being developed at a high standard, attractive to buyers.” The fact that Panama is taking the place of Costa Rica for retirement and investment destinations because we Panama have “better projects, better services and incentives.” Look at Coronado – one hour from the city, with all amenities and services. “All of that is an incredible opportunity to grow.” Not to mention Venezuelans and others coming in large numbers, “injecting money into the economy; buying property, establishing a business. All of that creates an atmosphere of growth in the economy so if you ask me again...I don`t think it`s a bubble, because a bubble is something that is inflating and filled with only air, and it explodes pops . This economy is injected with real money and real interesting things happening so...it`s not a bubble.”

[Wow. He certainly exploded the bubble myth for me! Next question...]

What`s the best thing about investing in panama?

All of the above. This whole conversation is about why...

But what about investors – are prices going to keep rising? Will investors be sure to make a profit?

“For now we re doing our best to give great homes to Panamanians and to foreigners who are going to live in Panama. We re not really thinking about the investor`s side.”

[I have to tell you, that answer impressed me the most. Heck, I started out impressed, clearly, but still healthily skeptical. The interview did manage to confirm the information I had found. But I digress!]

What advice would you give your best friend, or anyone looking to buy in Panama?

• Before you buy, do lots of research.
• Look into the companies: their experiences, projects.
• Visit the development.
• Ask lots of questions.

“On the quality side, we at Procasa have a team that do an inspection before the unit is inspected by the client, and then we have 5 days to wrap everything up and deliver the unit. Then we stay there with a team for 1 year rectifying any issues.” Is that normal? “I don t know. I just know we do it.”

Tell me about any awards Procasa has won.

“Well, my father has won many awards as an architect – for many projects, many single-family homes, including his own home, which he still lives in. He has lived there for 30 years.” Wow.

So would you say Procasa builds homes that you yourselves would want to live in?

“Absolutely.”

I can honestly declare that I left the interview feeling that this company was one I would buy from myself. In fact I have already requested more information! I hope you do, too.

For more information about PROCASA, and for all your Panama Real Estate needs contact Douglas M. Choy at ThinkPanama.com. He will be happy to provide any guidance and information you may need.