The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Construction on a ‘relaunched’ $30 million Cable Beach development is “moving full steam ahead”, its principal disclosing that 150 workers will be employed at the project’s peak.

Jason Kinsale told Tribune Business that One Cable Beach had managed to retain “about 80 per cent of pre-sales”, despite having endured an unexpected nine-month hiatus while it clarified its permits with the relevant government agencies.

With that process now behind the project, Mr Kinsale said One Cable Beach’s marketing efforts would again kick-off in earnest this week, using social media and a variety of channels to get the word out.

“We’re moving full steam ahead,” Mr Kinsale told Tribune Business. “We started demolition on the building two weeks ago, and see the real estate market is still very strong.

“We lost some and gained some, but managed to retain about 80 per cent of the pre-sales. Fortunately, there was no new competition that came, and the beach is the location. You can’t change that.”

The luxury condominium project, which is 600 feet west of Baha Mar on the Cable Beach strip, opposite Prime Minister Perry Christie’s house, has modified its design slightly since its first unveiling in 2013.

It will now stand seven storeys high, as opposed to the initially planned eight storeys, which has also reduced the number of available units by six - from 75 to 69.

Mr Kinsale disclosed to Tribune Business that 22 units, or 32 per cent, of the available units had been pre-sold before construction even goes vertical.

“It’s being driven by the foreign market, like at Albany and Baha Mar. It’s the same demographic,” he said of the forces driving demand at One Cable Beach.

“What we’re seeing now is 30 per cent Canadian buyers, and 20-30 per cent are European buyers. The remaining balance would be 20-25 per cent Bahamians, and the rest are expatriates living here.”

Mr Kinsale added that many foreign buyers were acquiring units at One Cable Beach without seeing the property, although they often visited within the month.

“There seems to be a sense of urgency,” he disclosed. “I would say it’s 60 per cent for tax reasons and permanent residency, and the remainder would be lifestyle.

“These are the kind of people we want in the country, as they will spend their money and don’t need jobs. They [the foreign buyers] are the perfect target market.”

Mr Kinsale said foreign buyer motivations at One Cable Beach were different from the Sanford Drive-based Balmoral development he had also led, as purchasers there were more concerned with the rate of return on their investment.

One Cable Beach’s prices range from in the $750,000s for a one-bed unit to $3 million for the penthouse, which has already been sold.

Calling on buyers to invest early, Mr Kinsale said: “For every 10 units we sell, we put up the prices by 5 per cent. We’ve increased the prices by $50,000 compared to when we launched a year ago.

“We wouldn’t have invested if we did not think the market was there. We wouldn’t go forward of we didn’t think we’d get the pre-sales, but I feel the market is as strong as it was a year ago or even stronger.”

Emphasising that One Cable Beach was seeking “strong buyers” who would not default on their mortgages, Mr Kinsale said the project was using similar stage payment schedules to Miami developers, where 50 per cent of the purchase price was expected to be paid within six-12 months.

“The banks are very rigid,” he added. “There are no grey areas, no leniency. Everything has to be perfect.”

One Cable Beach’s foundation will start to be poured in March 2015, with construction expected to last for 22 months and be completed by end-2016.

Expressing “confidence” that One Cable Beach would be 100 per cent sold once vertical construction began, Mr Kinsale said his project was the type needed to supplement larger, ‘higher dollar value’ investments such as Baha Mar’s and Albany’s.

“To put the burden on Baha Mar and expect them to carry the economy is not fair. We all have to participate and we all have to contribute,” he told Tribune Business.

“From what I’m seeing, there is a demand really looking for a boutique environment that is secure, private and close to all the amenities.

“I think we’re going to underestimate the transformation taking place out west. I think we will see Cable Beach transforming and growing itself further west from where it is now.”

Mr Kinsale said that with the Balmoral close to construction completion, and just seven rooftop sites remaining, One Cable Beach’s start would allow him to seamlessly redeploy his workers to the new site.

“In all seriousness, I’m happy to see people getting back to work,” he added. “I don’t like to lay people off.”