| Property Name: | Royal Island |
| Location: | Commonwealth of the Bahamas |
| Description: | Royal Island presents a rare chance to invest in the ground-up development of an exclusive private island resort in the Bahamas. Powerful demographic trends drive the strong demand for destination vacation homes like Royal Island. This opportunity is enhanced by the active marketing involvement of two sports legends. Participants include Cypress Equities, a partner of The Staubach Company, which is chaired by Roger Staubach, and Jack Nicklaus' namesake Nicklaus Home, which is planned to complement a signature golf course and offer members exclusive accommodations worldwide. Few real estate investment opportunities offer possibilities as intriguing as Royal Island. This planned development will spread across three islands that total more than 430 acres. The largest island is the 409-acre Royal Island, which has one of the biggest naturally protected deepwater harbors in the Bahamas. The lush tropical setting features some of the area's highest elevations, with up to 65-foot cliffs, breathtaking beaches, and spectacular ocean views unavailable on most other Bahamian islands. Royal Island rests just 190 miles east of Miami, 10 to 15 minutes by boat from North Eleuthera, making it easily accessible from most East Coast commercial centers. Five airlines offer daily 45-minute direct flights to North Eleuthera from Miami and Fort Lauderdale. Development plans for Royal Island include the area's largest full-service marina, with 200 slips and space for yachts more than 300 feet long. Deepwater harbor access of this type continues to be sought after by the ever-growing number of "mega-yacht" owners. The marina also plans to offer a yacht club, restaurant, and ship chandlery. Plans also call for an 84-bedroom luxury hotel, which includes beachfront villas and views of the ocean harbor. The hotel will be situated off the marina in the island village. The hotel will be complemented with rentable villas, two restaurants, a world-class spa, a pool, and tennis courts. This upscale complex will welcome guests and serve as a focal point of island life. The premier attraction on Royal Island will be the Jack Nicklaus Golf Club of the Bahamas. The Golf Club features an 18-hole course with no residential component, allowing the majority of holes to be on the oceanfront. The first of an expected 25 participating Nicklaus Clubs worldwide, this club will include a Nicklaus Home program that will give founding members the option to stay in Nicklaus' resort home on the island, or 24 other homes worldwide. The residential component of Royal Island will include a mix of 98 estate home sites, 150 villas, and 35 townhomes and flats that all reflect a casual island lifestyle. Thanks to its Bahamian location, Royal Island will benefit from a number of economic incentives, including no duty on construction material, furnishings, and fixtures for hotel development; a real estate property tax exemption for up to 20 years; and the Bahamian "no income tax" policy. |
| Year Built: | Village and resort facilities targeted for completion in late 2009 |
| Asset Size:* | 430+ acres on three tropical islands to include: |
| Acquisition Date: | May 2007 |
| Asset of Behringer Harvard Fund(s): | Opportunity REIT I, Inc. |
