KSI Capital participates in a $3.9 Million loan to Developers for St. Croix, Virgin Islands Resort*
Paramus, N.J., Aug. 5, 2004 â€”Thanks to a $3.9 million loan from KSI Capital, a direct private lender based in Paramus, NJ, USA, prime beachfront property totaling almost 600 acres on the lush western shore of St. Croix, U.S. Virgin Islands, is headed for luxury resort development.
William and Punch Partners, LLP is planning to build 'The Mills of St Croix,' a master planned residential resort community consisting of 125 luxury homes, a 300-room luxury hotel, a 10,000 s.f. casino, an inland marina, an 18-hole championship golf course, golf condominiums, tennis courts, a spa, beach club, and more.
The land is rich in local history, in addition to being virtually unspoiled acreage that has remained untouched since its last days as a sugar mill in the 1940s. The significance goes back considerably further, though, to the "Fireburn" of 1878-the labor riot that launched the labor movement in the Virgin Islands by burning the sugar mill on the property to the ground. It was only thirty years prior to that event, in 1848, that slavery became abolished in St Croix by formal proclamation.
Kevin Rames, one of the purchasing partners in William and Punch Partners, LLP of St Croix, is descended from generations of St Croix natives. In a letter to the Governor of the Virgin Islands, he emphasized the importance of this project: "In the distant past, the working people of St Croix, whether slave or indentured, underpaid and undervalued ... made this historic property productive. After many decades of laying fallow ... [it] will once again be productive."
The original purchase contract for the land was $3.75 million, which preceded a rezoning that will allow for the planned development. KSI Capital arranged a loan of $3.9 million, or more than the purchase price, in appreciation of the increased value of the land. This isn't the first time KSI has entered international waters to arrange for financing, and even though St Croix is a US possession, there is a tangle of legal and monetary issues to unravel. Fortunately, this is an area that is increasingly part of KSIâ€™s expertise
Kevin Rames expressed thanks "for believing in us. They worked assiduously to bring this transaction to a close and the people of St Croix will be better for it."
The property is largely covered with natural vegetation, with many knolls, vales, and slopes that afford stunning vistas of the Caribbean Sea . The developers plan to build 125 luxury homes on these ridgetops to take advantage of this tropical scenery, which will include 360 degree views of the island.
The Senate President of the US Virgin Islands, David S. Jones, has been a supporter of the project and helped shepherd the rezoning through the local legislature. "It is one of the best properties on the island, #1 for development," he said. "It will have a significant, positive impact on the Virgin Islands , especially St Croix , and make us competitive in the global tourism industry."
An increasingly wide range of borrowers, from land-use developers to resort builders, entrepreneurs, and major businessmen, have turned to KSI, obtaining financing from $1 million to $50 million. KSI can make loan commitments in as little as 24 hours, and close in as little as 10 days.
While specializing in commercial real estate loans, KSI has expanded its scope of lending to include a wide range of enterprises, including amusement parks, high-profile golf courses, tv and radio stations, airlines, and sports complexes, among others. Their extensive knowledge base and solid reputation has seen them manage everything from the most complex of financial transactions to simple acquisitions, workouts, refinancing, bankruptcies, and foreclosures.