Red Hook commercial real estate overview – no actionable investigative leads

Surrounding Area Analysis 22 Surrounding Area Analysis Location The subject is located in the town of Red Hook in the East End area of the Island known as Estate Smith Bay. Red Hook is one of the three primary business districts on the island. Access and Linkages Primary access to the area is provided by Route 32 (Smith Bay Road), a major arterial that crosses the east end of the island in a generally east-west direction. This is the primary route through the town of Red Hook, one of the three major commercial centers of the island; with the others being the city of Charlotte Amalie and the Tutu area. Overall, vehicular access is good. Public transportation is provided by Safari Taxi and provides access to all relevant areas. The local market perceives public transportation as average compared to other areas in the region. However, the primary mode of transportation in this area is the automobile. The Red Hook Ferry Terminal offers passenger ferries and car barges on regular schedules to and from St. John. Passenger ferry service to the British Virgin Islands is also available. The Cyril E. King International Airport is located about 8.4 miles from the property; travel time is about 25 minutes, depending on traffic conditions. The Charlotte Amalie CBD, the economic and cultural center of the island, is approximately 7.0 miles from the property. Demand Generators The demand for commercial space in the area of the subject is fueled by the popularity of the Red Hook business district. Red Hook is a centralized area serving the east end of St. Thomas, and features marinas, restaurants, bars, retail shops, and office space. The demand for office space in the area has been down due to overall economic conditions. As the economy continues its recovery, the demand for well-located office space will increase as well. Retail space; however, has seen an increase in demand in this area over the past 12-24 months as shown by the low vacancy in the 3 major retail properties Red Hook; American Yacht Harbor (subject), Red Hook Plaza and Galleria Shopping Center. Compared to the territory area as a whole, the local area has higher income levels. Population trends are similar except that the local area is growing at a faster rate than the territory. Land Use The area is suburban in character and approximately 65% developed. Predominant land uses are retail and office uses, with some residential users nearby. Marina use is also prevalent in this area. The area contains several neighborhood retail/office centers within a few blocks of the subject along Smith Bay Road. These include East End Plaza which is three stories and contains mostly office space, the aforementioned Galleria Shopping center which will is anchored by a newly opened gourmet grocery store, and the aforementioned Red Hook Plaza which is a two story IGY American Yacht Harbor Marina HOUSE_OVERSIGHT_018832