Hurricane Hole will become “the downtown of Paradise Island” via its $250 million transformation, its principal developer yesterday revealing 50 per cent of retail space is already pre-leased.
David Kosoy, Sterling Global Financial’s chairman, told Tribune Business the 13-acre site will become a “first world” location that complements Atlantis and other high-end resort assets through a mixed-use development featuring retail, office, residential and restaurant facilities.
Unveiling the company’s initial masterplan, Mr Kosoy said Sterling aimed to create a “village community” feel at the heart of Paradise Island where all residents, workers and retail operators knew each other.
He disclosed that Sterling has already invested “six figures” in upgrading Hurricane Hole’s existing 90-slip marina post-acquisition, repairing and upgrading docks; “doubling” employee numbers and enhancing the electricity supply for larger boats.
It is now targeting January 2019 to begin vertical construction, subject to obtaining the necessary planning approvals, with the project set to generate around 600 construction jobs per year over the five-year period to 2024. An estimated 500 full-time jobs will be created once the new-look Hurricane Hole is completed.
Pledging that Sterling will move its offices to Hurricane Hole, which will be redeveloped in three phases over a five to seven-year period, with himself and his senior executives also living there, Mr Kosoy said: “We’re not going to get it wrong.”
Unveiling his vision for the property, the Sterling chief told Tribune Business: “I think it’s going to be the downtown of Paradise Island…. It’ll be like the village where you know the person in the supermarket. Can you get me this next week if you don’t have it? The meat you want, the cheese you want.
“It’s more like the old times; like a village in the UK. You know your butcher, you know your grocer. You don’t have to go over the bridge. It’s going to be like the downtown. It’s going to be a village. That’s why we called the retail part ‘Sterling Commons’.”
Mr Kosoy said Sterling intended for Hurricane Hole, which sits on the Nassau harbourfront adjacent to the ‘off bridge’, to become the community hub for Paradise Island. Describing the property as “a gem”, he suggested it will become a location where persons can “hang out” and “take away somewhat from local people going to Atlantis”.
The project’s amenities are designed to complement Atlantis and other resorts, plus provide what Paradise Island currently lacks. Among the retail options set for inclusion in the first phase are a grocery store, liquor store and dry cleaners – some of which were lost when Kerzner International demolished Hurricane Hole’s previous shopping plaza.
The former Atlantis’s owner’s plans to redevelop the site, which were similar to Sterling’s current intentions, never came to fruition as a result of the 2008-2009 recession and its own subsequent debt restructuring. Kerzner International initially retained Hurricane Hole, but then entered into a land swap that saw ownership pass to current Atlantis owner, Brookfield Asset Management.
Mr Kosoy told Tribune Business it took Sterling nine months “from the start of negotiations” to complete Hurricane Hole’s acquisition from Brookfield, with the deal producing $30.9 million for the Government through Stamp Duties and recording fees.
He disclosed that himself and Stephen Tiller, Sterling’s chief operating officer, were able to draw on previous relationships formed when they worked for Brookfield to seal the deal, given that the Atlantis owner was not actively seeking to sell.
“We were fortunate enough to be able to negotiate this in an off-market deal. It wasn’t out to market,” Mr Kosoy said. “I felt it was an asset that was not integral to what they’re [Brookfield] doing.
“This [Hurricane Hole] is a small asset for a company like that. For us, it’s a major asset that will get 100 per cent of our attention, when historically it may have got 50 per cent of the owner’s attention.”
Mr Kosoy, when unveiling the proposed Hurricane Hole redesign to assembled media, said the property could become “a centrepiece for the whole country” if its redevelopment was “handled properly”.
He said Sterling planned to promote the project’s residential options at events such as the Cannes and Monaco boat shows, with prospective expatriate buyers already showing interest.
“With the pre-sales, we’ve had people coming up to us unsolicited, giving deposits for the condos and also the retail,” Mr Kosoy told Tribune Business. “People sent us money for the retail. We’ve pre-leased, as of today, 50 per cent of the retail without going to market.”
The Sterling chairman has been involved with a number of other Paradise Island-based real estate developments, partnering with Aristo Development’s Jason Kinsale to finance the ongoing Thirty/Six condo project.
When asked why he loved Paradise Island so much, Mr Kosoy said his goal for Hurricane Hole’s redevelopment to “enrich the community” was motivated partly by “selfish reasons” given that he and his family already live on the island.
Describing the tourism destination as “a bubble” where residents can afford to leave their homes unlocked, he added that Sterling’s project will provide facilities that Paradise Island currently lacks while enhancing the quality of life for Bahamians and tourists.
“Instead of seeing a derelict parking lot,” Mr Kosoy said of guests at the nearby Warwick Paradise Island, “we will have something that is first world. Paradise Island is first world.”
Sterling is planning between 140-160 condo and town home units for Hurricane Hole, with buildings going no higher than seven storeys. Mr Kosoy said around 65 per cent of the units will be priced in the $500,000 to $800,000 range to make them “affordable for young professionals”.
The marina will be expanded and ‘squared off’ from its present circular shape, with Mr Tiller suggesting that docking space will likely expand from 4,400 lineal feet to 6,000 – a 36.4 per cent increase.
Green space, though, is key to Sterling’s masterplan for the property, which is being developed by international firm, EDSA. “We don’t need to squeeze every last dollar out of it, as that will affect the environment,” Mr Tiller explained.
“The general trend in the marketplace is ‘live, work and play’, and the village concept. That’s why there’s a lot of green space, and a lot of momentum to marina living. We could have put a lot of concrete and density, but that takes away from the village feel.”
Pointing to the improvements already made, Mr Kosoy said: “We’ve fixed the docks, increased security, almost doubled the employees, upgraded the electricity for bigger boats. We’ve repaired a lot of the docks that had issues. We’ve expanded the facilities not just for the boaters but the crew and captain.”
Mr Tiller added that Sterling had addressed much “deferred maintenance” that it inherited following the acquisition. Hurricane Hole’s fuel dock now has 12 slips, while those on its charter dock have expanded from 12 to 24.
“We’re very active and want to be in the ground on the first phase next January,” Mr Kosoy told Tribune Business. “We have the financing on the first phase already, and the next phases should be self-financing.
“Thirteen acres is a big property, and we’re not overbuilding….. We’re not going to get it wrong. I’m moving here, Steve is moving here, Bill [Green] is moving here. What’s good for us is good for our neighbours. Office and home. We’re not going to get it wrong.”
The full Hurricane Hole build-out will cover around 300,000 square feet. Bill Green, Sterling’s chief investment officer, said the first phase will involve 50,000 square feet of retail, office and residential space, with two waterfront restaurants to be constructed “concurrently”. Retail will be on the ground floor, office on the second and residences on the third.
Brent Symonette, minister of financial services, trade and industry and Immigration, who was in attendance, praised the restaurant plans for improving waterfront dining options that he suggested were lacking.
Mr Green, meanwhile, suggested that Hurricane Hole had been “secondary for a little while, and the intention is to bring it to the fore again”. All marina docks and much of the infrastructure will be replaced, while One Marina Place will include 40 new residential units in addition to the existing office and vessel dockage.
When completed, the Hurricane Hole project will generate an annual $3.2 million taxes and fees for the Government, including VAT and National Insurance contributions.
SOURCE: TRIBUNE242
