65 U.S. acres with 1800 ft. of waterfront. Two exceptional development parcels on the NW sunset coast of St. Croix, US Virgin Islands. The parcels represent attractive development characteristics that are increasingly rare.
As an investor, why select St. Croix as the island of choice in the Caribbean?
This splendid site and the surrounding area exist in virtually pristine natural condition and at present, a blank canvas for the imagination of the developer. The same may be said as well of St. Croix. Of the three U.S. Virgin Islands, St. Croix is the least well known, is larger than St. Thomas and St. John combined and enjoys the substantial benefits of being a U.S. territory.
ST. CROIX
St. Croixs development has largely relied upon airline fed tourism and the migration of new permanent residents seeking their place in the sun. Being out of the spotlight has constrained development on a relative basis and kept property prices from participating in the frenetic appreciation that has recently occurred in rest of the Caribbean.
As Caribbean and warm weather U.S. properties have reached price points that leave investors gasping for oxygen, serious attention is being paid to St. Croix as the next best place for quality of life without a million dollar price tag. Property pries are generally a fraction of those on St. Thomas and St. John and lower even than most of the alternatives in non-U.S. islands in the Caribbean.
Well planned development on reasonably priced property can profitably offer price points that target a broader market than just the super affluent the U.S and abroad. With its Danish heritage, St. Croix may be an especially attractive market for Europeans if direct air service could be established through vacation packages and chartered flights.
Beyond the multitude of financial, tax and legal advantages of a U.S. person investing in the U.S. Virgin Islands, are the quality of life and quality of vacation experiences that St. Croix provides.
St. Croix has:
• an excellent road system including a 4 lane highway
• an international airport with a long, safe runway and FAA oversight
• The University of the Virgin Islands
• an accredited hospital and board certified doctors
• excellent banking, legal and insurance resources
• a strong National Guard unit
• experienced contractors
• great restaurants
• great beaches
• water sports of all description
• most important – wonderful friendly people.
Investors also benefit from a educated workforce … world class communications including high speed broadband and island wide Wi-Fi services … cell phone service … duty free export of U.S. Virgin Islands made goods to the U.S. … excellent air access and shipping facilities.
Tax Benefits
Investors should be aware of the significant tax benefits through the Economic Development Authority made available for businesses that set up shop in the U.S. Virgin Islands. Qualifying businesses can obtain tax benefits for up to 10 years (15 years in the geographic area surrounding the Butler Bay site) for income taxes, excise taxes, gross receipts taxes, customs duties etc.
Why is Butler Bay a superior site on St. Croix from the perspective of an investor?
Limited inventory of large waterfront properties.
Very few waterfront properties are currently for sale in the U.S. Virgin Islands that have not been subdivided in to smaller lots. Butler Bay offers sufficient acreage for a project of the scale that will interest serious investors, has the required zoning already in place, is situated in a top flight neighborhood insulated from undesirable influences with good roads, electrical and telecommunication services and enjoys an exquisitely beautiful natural setting surrounded by the Butler Bay Nature Preserve. The inventory of such well positioned properties is not increasing.
West End Redevelopment
In the past several years the West End of St. Croix, including Frederiksted, has seen a major increase in investment activity. At the top of the list is the plan of the Mashantucket Pequot Tribal Nation (Owners of Foxwoods Casino) to develop an 800 acre waterfront parcel as a mixed use community with a golf course, casino, hotel and residences approximately a mile north of Frederiksted. (a mile south of the Butler Bay site). Next is the multimillion dollar makeover of the Frederiksted cruise ship pier and waterfront that was completed last summer.
These projects have infused the real estate market with considerable buoyancy and many of the historic structures in Frederiksted are being bought up and refurbished.
Time Frame
Butler Bay is owned by a limited partnership whose owners (older individuals) are not interested in waiting out the resurgence in West End property values or in the longer term prospects of developing the property themselves and would prefer an outright sale in the short term in accordance with their personal objectives.
Property Development Characteristics
The property is located on the NW corner of St. Croix … an area that historically has seen little development and whose natural beauty remains unblemished. Served only by a single paved two lane road that follows the coast north from the historic town of Frederiksted, the entire area surrounding Butler Bay can be viewed as a large controlled access area where security and privacy can easily be attained through electronic or physical measures.
The Butler Bay site is further insulated from the outside world by ridgelines that drop from hundreds of feet to the shoreline and the cove beach. Despite this environment of privacy and exclusivity, the Butler Bay site is only 6 miles from the airport, 2 miles from Frederiksted and 4 miles from the conveniences of Kmart and supermarkets.
Topographically the site is almost ideal for many development venues. Back from the beach, a swath of large specimen trees (Mahogany, Saman, Thibet etc.) shields the upper portion of the property from the shore road. From the back of the property (200 elevation on the 40 acre site and 500 ft. on the 22 acre site) the view is over the tree tops to the ocean enhancing the sense of privacy and the natural setting.
Because the property slopes up from the beach, ocean views are available from practically any point on the property. The slopes are not severe enough to present building problems. The mature vegetation goes a long way to filling in the landscaping that most projects will require. Rainfall is generally plentiful on this portion of the island (leeward side) and the vegetation is lush and tropical.
The 43 acre site is already zoned R-3 and is specifically authorized under its zoning for 180 hotel rooms. R-3 zoning is medium density and a laundry list of other uses is permitted as a matter of right under R-3 zoning. The 22 acre site is zoned R-1 (1/2 acre lots with 2 structure per lot).
Should more acreage be required there is an adjacent property of similar size which be negotiated on to give an acreage of approximately 130 acres.
Both parcels (65 acres) are offered at $6,450,000
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