By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A two-time Bahamas Real Estate Association (BREA) president yesterday unveiled a $40 million investment intended to help revive his family’s ancestral home, via a project that will create 40-50 construction jobs at “peak speed”.
Pat Strachan, of Pat Strachan Realty, told Tribune Business that the 100-home Residences at Greenwood project would “no doubt be a positive injection for the Cat Island economy” when it launches in 2016.
Making good on previous promises that he would take action, and go beyond talk, to help revive the island, Mr Strachan said the development would target both Bahamian and foreign second home buyers with a mid-market price point.
He disclosed that the impending redevelopment of New Bight Airport, which in turn is supposed to unlock the multi-million dollar PGA Village project, had given him the confidence to unveil The Residences at Greenwood.
Explaining that his project, which will be located in south Cat Island in the Greenwood Estates area, will ‘piggyback’ off the PGA Village and airport projects, Mr Strachan told Tribune Business: “I feel good about it.
“I’ve given it some thought, and we’ll see what happens. I don’t want to put a date on the launch, but it will definitely be next year. I just have to tie up some loose ends.”
Mr Strachan, who will develop the project through his S.I.G. Holdings Ltd vehicle, is offering pre-construction sales prices of between $300,000 and $450,000.
He added that the site already had full subdivision approval, and he now had to submit the architectural drawings and renderings to obtain the final planning permits.
The former BREA president said he was going back to his roots, having spent the first nine years of his real estate career involved in pre-sale construction.
“Some surveying work has been started at New Bight airport,” Mr Strachan said. “The PGA Village has been on hold for now, but I’m confdent that once the airport gets started, the PGA development will take off.
“Obviously I have emotional and family ties to Cat Island, but more important are the projects that are planned for Cat Island - the airport and PGA Village. Looking to the future, I’m optimistic about Cat Island. I intend to go forward with it.
“I think I’m going to be giving something back to Cat Island. I feel an obligation to do something that’s positive for the development of Cat Island. We’ll be a significant provider of funds for the local community, providing employment, and when people are employed there’s a trickle down effect. Food stores and restaurants will benefit because people will have money in their pockets.
Mr Strachan said he had already identified the main contractor and architect that he wanted to hire for The Residences at Greenwood.
“I imagine you could be looking at anywhere from 40-50 construction jobs once it’s brought to peak speed,” he told Tribune Business.
“You’re looking at masons and carpenters, and it will be a positive injection for the economy, no doubt.”
Mr Strachan added that he was targeting a five-year build-out for The Residences at Greenwood, with 20 homes constructed per year.
He plans to hire real estate brokers in London and Miami as his exclusive sales representatives for Europe and North America, respectively, and expects that foreign buyers will account for 75 per cent of the first 25 pre-sales.
“I am very confident. I think the houses are reasonably priced,” Mr Strachan told Tribune Business, when asked if there was sufficient local and international demand to meet his sales goals.
“I think there’s a local and foreign market for second homes. The product I’m selling is just under $500,000.”
When Tribune Business pointed out that the price points were just below the level ($500,000) where foreign buyers could apply for permanent residency, a key requirement for many purchasers, Mr Strachan said his plans were flexible enough to accommodate their wishes.
He added that he had held “preliminary talks” with a Bahamas-based bank to provide purchaser financing for Bahamian buyers.
“Twenty-five per cent of the development will be targeted to Bahamians looking to purchase a second home at around $300,000,” Mr Strachan said.
“My top model will be around $450,000. I will go after the foreign second home-buyer from North America. The four-model prices will be from $300,000, $350,000, $400,000 and $450,000.00.”
All home owners will enjoy uninterrupted access to the beach. Lot sizes range from 8,000 square feet to over 12,000 square feet. The models will range in sizes from 1,000 square feet to 1,500 square feet.
“Presently, there is very little going on in Cat Island in terms of residential construction,” said Mr Strachan. “This development will provide an uptick in the local economy.
“Cat Island presently has a population of 1,500 plus. When these developments take off, I believe you will see persons heading to Cat Island to live and work. In addition, I believe Cat Islanders will go back home.
“So, I’m optimistic and I see the glass as being half full. Over the next five to 10 years, I would like to see the population grow to 5,000. The development of boutique hotels and other industries, such as agriculture and manufacturing factories, ought to be encouraged.”
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