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The riverwalk in the Kubano Naberezhnaya neighborhood
With Sochi now the International Olympic Committee's choice to host the 2014 Winter Olympiad, the real work of preparing Krasnodar Krai for the expected influx of capital and visitors has only just begun. To give Russia Blog's readers a better picture of the tremendous economic development now underway in the region, we have asked Timothy Post, an American businessman working in the city of Krasnodar, to share some of his insights.
Kubano Naberezhnaya (Kuban riverbank) is quickly becoming Krasnodar's most exclusive residential neighborhood. The neighborhood is best known for its huge park which stretches for a couple kilometers along the banks of the Kuban River. Recently, the park has seen a large influx of investment with the building of a large water park, new entertainment rides, cafes, outdoor discos, and new restaurants. Each weekend, thousands of folks from Krasnodar gather to relax and enjoy one another's company along the beautiful river.
Location of Krasnodar Krai on the Black Sea in southern Russia
The city administration has done a fantastic job itself of investing in the park's infrastructure. An amazing promenade was built two years ago which makes one feel as if she is strolling along the bank of one of Europe's rivers. A new pedestrian bridge was built to connect the tip of the park's peninsula with the mainland. The bridge is a cable stay suspension bridge which has been nicknamed "The Bridge of Kisses" since so many newlyweds now go there after their ceremony to take wedding photos.
Both the promenade and the cable stay bridge are two examples, among many others throughout the city, of how the Krasnodar Krai government, lead by Alexander Tkachev and Aleksandr Remezkov, understand the importance of creating a "livable city" with public spaces that can be enjoyed by all. It is no wonder that with its beautiful location along the Kuban River, its close proximity to the center of the city, and with the newly refurbished park that Kubano Naberezhnaya has become the hot place to live.
The "Bridge of Kisses"
Looking at the neighborhood from a distance it looks like a "mini Moscow" on the Kuban River. Larges cranes swing back and forth lifting materials as the beautiful new high-rise condo buildings grow taller and taller. There are perhaps eight new condo buildings in various stages of construction but there are very few units still left for sale. Prices per square meter continue to rise. Kubano Naberezhnaya may be on the high-end of the residential markets but it is indicative of the city in general. Krasnodar is growing-up quickly.
Despite the speed at which Kubano Naberezhnaya is developing there are still a few opportunities for developers to acquire prime lots in the center of the district. I recently spent some time with the owners of one such plot of land in the heart of Kubano Neberezhnaya which may just be an excellent location for a high-end hotel.
Map of the neighborhood
The owners of this plot of land are interested in either selling the land or partnering with a hotel chain to jointly develop the property. The owners are also looking to build and run a high-end fitness club and spa as part of the project. Currently, they own Orange Fitness ( http://www.fitness-orange.ru) and run a chain of nine sushi restaurants. While the owners are open and flexible as to how a deal might be structured, they are interested in putting their land in as an equity investment as well as investing capital of their own. The land has been appraised at $6 million dollars. Here's some more facts about the property:
The plot is .6 hectares or 60 sotkas (1.56 acres) The hotel could occupy 3,000 square meters (32,291.7 square feet) of the site. If the hotel is 12 stories then the Gross Developable Area (GDA) is 36,000 square meters (387,500 square feet). Cost per GDA would be $166 per square meter (10.7639 square feet)
The owners of this land have recently been contacted by some international hotel chains. They would welcome anyone who would like to learn more about this unique piece of undeveloped land in the center of Krasnodar. As many Russians familiar with this city know, the real estate market here has been red hot, and it is becoming almost impossible to find a great piece of property in the central part of the city.
Within two years, I predict that Kubano Naberezhnaya will be the Back Bay (think Boston) of Krasnodar.
Here's a number of photos showing the land as it currently looks. The first photo is a satellite photo. The next picture is a semi-aerial view of the lot from across the street looking down.
Satellite photo of Kubano Naberezhnaya
Dimensions of a property in the neighborhood
All photos by Timothy Post. Â© 2007 All rights reserved. Republished with permission.
Timothy Post, a native of Boston, Massachussets and an MBA graduate of Babson College, is a real estate developer in Krasnodar Krai. You can read the original post on Tim's blog, Inside Krasnodar. The views expressed in this post and on his blog are the personal opinions of Timothy Post, and are republished by Russia Blog for educational purposes. If you have more questions about doing business in Krasnodar, you can email Timothy at firstname.lastname@example.org.