Argentine developer uses capital-markets model to tackle soaring dollar construction costs

Ignacio Aldazabal believes property should be treated less as a business of building square meters and more as an investment alternative. That idea guides a development model designed for a market where construction costs in dollars have risen more than 140% since September 2023.

Aldazabal founded HA Emprendimientos after clients of the company created by his grandfather began asking where they should invest in property. He belongs to the fifth generation of a family involved in Argentina’s capital markets since 1890, where wealth management and investment formed part of the family business.

His approach transfers that financial background to real estate: analyze markets, identify opportunities, structure investments and assess each project according to its potential. “Real estate should not be viewed as the development and construction of square meters, but as an investment alternative,” he says.

The company also avoids presales to finance construction. It secures the full capital required when a project begins, which Aldazabal says prevents the risk of selling apartments cheaply because of a need for liquidity. “In this way, we do not run the risk of underselling the apartments because of a need for liquidity,” he explains.

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Real estate should not be viewed as the development and construction of square meters, but as an investment alternative.

HA Emprendimientos initially developed only in Argentina, but its investors later requested opportunities abroad. The company moved first into Uruguay and then, about five years ago, into Florida, specifically Miami, after determining that Uruguay’s market was too small for some investment amounts.

Aldazabal says the company does not compromise on location. In Miami, it raised $110 million for a 35-story tower with 328 units in Edgewater, scheduled for completion in the second quarter of 2028. Investors do not buy individual apartments. They acquire equity stakes in the development, which remains under one corporate owner.

Once construction ends, a specialized company rents and manages the units. After the property reaches stabilized annual income, the entire building is put up for sale, generally to an institutional fund. The model therefore relies on capital markets rather than the traditional approach of leveraging projects through presales.

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In this way, we do not run the risk of underselling the apartments because of a need for liquidity.