FOR developers of The SANA, an ambitious US$25-million project on Kingston’s South Avenue corridor, there is no visible hint of fear that it is entering the market at a time when brick and mortar retail is increasingly under threat from online shopping.

They are confident that they have the right address, coupled with the perfect blend of premium shops, high-end office space, and luxurious penthouses, that will make The SANA a solid investment.

“The SANA is located in an established, sought-after commercial hub in Kingston and St Andrew. People come from all over the country to conduct business in that hub, and the entertainment units have the potential to attract business into the wee morning hours,” said MoneyMasters REIF South Development Limited (MoneyMasters REIF SDL), which tapped MoneyMasters Limited and partners to finance the project.

They say their confidence in the mixed-use space is based on solid data.

This view of the SANA Tower shows the two exclusive, upper-level penthouses.

“Market research conducted on the behalf of MoneyMasters REIF South Development Limited validated strong demand for exactly what SANA offers. About 67 to 69 per cent of both residential and commercial prospects expressed interest in the South/Central Avenue area, and 84 per cent of businesses were already aware of the location,” MoneyMasters REIF SDL said in written replies to the Jamaica Observer’s Real Estate on the Rock.

That means there is less work to do in marketing the project than if the location was less familiar.

“The mixed-use format is also broadly preferred: 63 per cent of commercial respondents chose mixed-use over a commercial-only development,” said MoneyMasters REIF SDL.

Asked to explain what made The SANA a good investment, it reeled off the numbers that have shaped its decisions.

“From a return standpoint, conservatively our investor briefing projects rental yields of five to seven per cent per annum and capital appreciation of five to 10 per cent annually over a five-year hold, with an IRR [internal rate of return] range of 5.10 to 6.26 per cent and an ROI [return on investment] of 26 to 33 per cent,” it said. “The entry price of US$400 per square foot gives buyers exposure to scarce commercial real estate in one of Kingston’s most active corridors.

The SANA Plaza, the first phase of the project, is being billed as ideal for financial institutions, medical offices, boutique retail, professional services, and business support operations.

“Practically, the 232 parking spaces, dual-frontage access, LEED [Leadership in Energy and Environmental Design]-aligned design, and the professionally managed complex all support tenant retention and long-term asset quality. For investors who don’t want to buy a unit, the secured notes option [10 per cent coupon, quarterly cash flows, maturing March 2028] offers a simpler income pathway,” added MoneyMasters REIF SDL.

The two-phased project begins with The SANA Plaza, for which ground was broken on May 28. It is expected to be completed within 15 months. Clients may opt to either lease or buy into the four-storey SANA Plaza, which will provide 34,000 square feet of commercial space and 10 saleable units totalling 24,835 square feet. Features that make it attractive include entry points from both South Avenue and Central Avenue, and there are office wings positioned along that corridor. The plaza will provide 16 premium commercial units designed to support exclusivity and premium market positioning, complemented by ground-level parking facilities and landscaped green spaces.

For the second phase, there will be 30 units for sale in the nine-and-a-half-floor, 68,000-square-foot, mixed-use SANA Tower. They will offer a blend of commercial and lifestyle experiences. The plan calls for retail and commercial space on floors one to four; a food court, restaurants, social and entertainment spaces on the fifth floor; top of the line corporate office spaces on floors six to eight; and two luxury four-bedroom penthouse residences on the ninth and 10th floor. One will be 4,560 square feet while the other will be 3,700 square feet.

“These are loft penthouse apartments, each spanning the 9th and 10th floors and occupying a corner position with a patio or balcony on the lower floor,” said the developer.

According to MoneyMasters REIF SDL, there is a rooftop jogging trail, entertainment facilities, 24-hour security, solar power in general areas, three high-capacity water storage tanks, smart infrastructure, and SANA Tower is accessible to individuals with disability (Americans with Disabilities Act [ADA] compliant).

Developers have stressed that they are big on sustainability, operational efficiency, and reduced environmental impact and The SANA is being designed to be green, fully in line with LEED standards. In addition to being ADA compliant and having rooftop and outdoor green spaces featuring native landscaping and passive ventilation systems, their goal is to include energy-efficient construction materials and solar-ready infrastructure, along with Internet of things-enabled systems for energy management, lighting, and security.

The SANA is just the latest in big moves by MoneyMasters. It is also working on Vista Montego Bay, a US$130-million project in the heart of the western resort city. Ground was broken last year for The Reif Tower (Phase 1B). MoneyMasters was looking at a July 2026 timeline to start working on the Trilogy Towers — made up of the Brisa, Sanctus, and Elysian — and wrapping up the entire project by 2029. Up to last September, plans were still being designed for The Towers Trilogy.

“We are focusing on commencing Phase 1B of the Vista whilst we work through the planning and approval for the towers,” developers told the Sunday Observer when asked for an update last week.