The Royal Palms site on Seven Mile Beach is being offered for sale for US$80 million (CI$67.5 million), the highest price ever asked for beachfront property of this size on the island.
ERA Kirkconnell Realty this week listed the 3.49 acre property, with its 300 feet of beach, stating that it is the largest beach-front property for sale on the island.
Realtor Dena Rousseau also advertised the site for sale on an internet trading site.
‘I’ve had a lot of people calling about it, but no concrete offers yet,’ Ms Rousseau said. ‘The site runs from the sea, with its 300 feet of beachfront to the main road,’ she said.
The advertisement states that the site is zoned for hotel, tourism or commercial use and is ‘levelled, cleared and ready for business’.
The site is home to the Royal Palms bar and Reef Grill restaurant on the waterfront and a large car park. It was previously the site of the Royal Palms Hotel which burned down in 1988.
Real estate broker Kim Lund said that the $80 million price tag for the site was well above the market price, which he estimated would be about US$50 to US$60 million.
‘In my experience with being involved in the sale and joint venture of waterfront properties with 300 to 400 feet of beach front on Seven Mile Beach, I would say this one is quite attractive, but a little too highly priced for a developer to have a fair return on investment,’ Mr. Lund said.
‘This is definitely a record price they’re asking for,’ he added.
For comparison purposes, he referred to the Hyatt hotel on Seven Mile Beach. ‘Five years ago, the Hyatt with its 235-room hotel and 53 suites on the beachfront as well as some other land that would be available for development sold for about US$40 million,’ he said.
Don Loyd, co-owner of the bar and restaurant with the site’s owner Captain Charles Kirkconnell, said he hoped he and his wife Julie would continue to operate the Reef Grill and Royal Palms operations.
‘It’s been a nice ride. We’re in our 10th year. My hope is that we stay as long as we possibly can,’ Mr. Loyd said.