Sterling Commons developers hoping to break even in phase one

Executives of Sterling Commons and Hurricane Hole Marina say they hope for phase one of the project to at least break even, given the challenges with the COVID-19 pandemic this year and their decision to continue hiring despite the economic conditions.

Sterling Global Financial Chairman David Kosoy, who toured phase one of the Paradise Island development with Prime Minister Dr. Hubert Minnis on Friday, said the project has fallen behind by one month and delays because COVID-19 has caused cost overruns.

But some of Sterling’s overruns came from the company’s decision not to conduct layoffs during the height of the pandemic and to hire six people at the executive level.

“We hired people and we went on as if the pandemic will be over. And it will be over,” Kosoy said.

“If we make a little bit less money, big deal, because people just need some money to feed their families.

“So, we did hire more people and because we are ramping up for growth and we had a lot of very good people available now, because people were let go from other companies, we felt this was an opportune time, even if there was a lag in our balance sheet, to pick up the cream of the crop.”

Kosoy explained that the project could take another three years to complete, but phase two should be completed by the summer of 2021.

Minnis said the marina development, which will accommodate superyachts, could position The Bahamas as one of the premier superyacht destinations in the world. 

According to Kosoy, phase one is “the anchor and the base” of the project and already has much of its retail, office space and residences under contract.

“If we can break even on the first phase, we’re very happy, because it is the anchor and the base of everything you’re doing from then on and it enables us to assemble a team, which we did and were doing,” he said.

Sterling Commons will feature service and retail businesses on its first level, professional office space on the second level and luxury one- and two-bedroom residences on the third floor.

Yacht owners and residents will have access to restaurants, a gourmet grocery store, day spa and a medical clinic, among other amenities.

President of Sterling Advisory Services Khaalis Rolle said the first phase of the project cost more than $70 million, while the total cost of the project is about $250 million.

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source https://thenassauguardian.com/sterling-commons-developers-hoping-to-break-even-in-phase-one/