The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An eastern New Providence development yesterday unveiled a “unique” strategy for selling its new $17.5 million condo offering, which it hopes to build-out within two years.

Zack Bonczek, Palm Cay’s sales and marketing director, said the development hoped to complete the 50-unit project, called The Anchorage, inside 24 months “in a perfect world”.

He explained that the condos, which will diversify the 69-acre development’s product offering away from its single family and townhome staples, were being developed in response to market demands.

And, rather than ask potential buyers to put down ‘hard money’, in the form of a 10 per cent deposit, Mr Bonczek said Palm Cay would use a ‘reservation system’ - requiring just $5,000 upfront - to sell The Anchorage.

Prices for the first 12-unit phase will range from $319,000 to $329,000, and Palm Cay is expecting this to be “oversubscribed”, giving it enough sales momentum to roll through successive construction phases at The Anchorage.

“There’s lots going on here. We’ve seen over the last several weeks and months a rebirth of what we’re trying to accomplish here,” Mr Bonczek said.

“We’ve found in the last several months, through accumulating data from prospective buyers at Palm Cay, the market is really demanding the low $300,000 price range for condo product that is either single or two-storey.”

The Anchorage’s first 12-unit phase was released to the market yesterday, and Mr Bonczek said they would include three different product offerings - ranging in size from 1,200 square feet and one storey, to 1,400 square feet and two levels.

“Our sales strategy is a little bit unique. We’re doing a reservation system,” he explained. “With a mix of product, we’re hoping to attract buyers for each of the offerings.

“What we are trying to do is generate interest. We have to understand what the market is telling us. It’s another thing for them to demonstrate that with hard money.

“Rather than scare them with product not built yet, it’s important for us to go to the market, which can show interest by paying a nominal deposit, sign a reservation agreement and on eventually to make that deposit.”

Potential buyers will be dealt with on a ‘first come, first serve’ basis, once they pay their initial $5,000. The first applicant to complete the process will “get first pick” of the available units, with those coming afterwards getting second pick, third pick and so on in that order.

Palm Cay will then hold a closing event in mid-late August, where potential buyers will be required to put down the 10 per cent deposit.

The purchase price will then be paid in instalments, with 40 per cent released when windows and doors are installed, and the 50 per cent balance paid on completion.

Mr Bonczek said Palm Cay had already received “a couple of deposits from inside investors” on The Anchorage’s first phase.

Disclosing that they aimed to break ground on the first 12 units in early September, with a 12-month construction timeline taking the completion deadline through to 2014.

Anticipating that first phase demand will exceed supply, Mr Bonczek said the excess reservations would enable Palm Cay to roll seamlessly into subsequent phases of The Anchorage.

“The reservation process will roll through the project. We won’t sell 12, build them and start again,” Mr Bonczek said.

“We’ll continue with reservations. Based on what the market has told us, the reservations will roll out pretty quickly, and the first 12 will be oversubscribed. This is going to be an ongoing rolling process.

“Once we have this momentum, we feel we can roll into the next phase, roll into the next phase.....”

He was quick to point out that Palm Cay would limit reservations to a maximum of two per buyer, thus preventing speculators from accumulating multiple properties.

“What we want to prevent is speculative buyers coming in and buying more than is reasonable,” Mr Bonczek said. “This process could encourage activity we do not want to promote, with people coming in and reserving five units. Many people have $25,000.

“What we want to do is prevent the hoarding of product and encourage fair play. We want to limit the amount of reservations to two.”

The Anchorage is targeted largely at the young Bahamian professional market, and Mr Bonczek said its buyers were likely “going to be pretty much split down the middle” between locals and foreigners.

The product, he indicated, was also likely to appeal to second home owners wanting a lower price point while still enjoying the beachfront and boating lifestyle.

“Those two points merging together is what is going to make this extremely successful,” he said.