KingAlarm enters real estate development with 10-project pipeline

KingAlarm, the Azar family-owned security company, plans to develop real estate properties, with land already acquired for two initial projects in Kingston and Ocho Rios and eight more in the pipeline.

The developments, located on Millsborough Avenue in St Andrew and in the heart of Ocho Rios, represent the first phase of a broader real estate strategy that has been taking shape for years.

“Over the past five or so years we have acquired numerous pieces of prime real estate. The projects represent the first two of 10 exciting projects planned under the Azar Developments brand,” said John Azar Sr, managing director of KingAlarm, in a Financial Gleaner interview.

Azar Developments is a trading name owned by KingAlarm rather than a separate corporate entity, he said. The two projects differ markedly in scale and target market.

Azar Sr declined to disclose investment figures for the two developments, but said the projects would be financed largely from internally generated funds.

“I wouldn’t want to be specific with the numbers,” he said. “The projects are going to be built primarily out of cash flow.” He argued that avoiding traditional financing costs should help maintain value for buyers.

At Millsborough Avenue, the company plans an upscale townhouse community of seven units, each with four bedrooms, 4.5 bathrooms and a private pool. The project has been deliberately designed at a lower density than zoning would permit, with management opting to preserve green space and common areas for residents.

“We could have maximised the land more,” Azar Sr said, noting that the company intentionally reduced the unit count to avoid the congestion often associated with townhouse developments and to provide adequate parking and landscaping.

The target market is the upper-income buyer seeking residential accommodation in one of Kingston’s most affluent neighbourhoods.

The Ocho Rios project, meanwhile, will cater to both local and overseas buyers. Planned for a two-acre site adjoining another recently acquired 2.5-acre parcel, the development will comprise an eight-storey residential tower with 62 units — 36 studios, 20 two-bedroom apartments and six three-bedroom units. Every unit will feature ocean views and balconies.

Located beside the recently completed Sol Harbour development, the project is aimed at vacation-home buyers, members of the Jamaican diaspora and local purchasers seeking a north coast property.

“I’d say that we’re definitely targeting people in the diaspora who wish to own property in Jamaica, as well as Jamaicans seeking a home-away-from-home experience,” Azar Sr said.

A key differentiator across all Azar Developments projects will be security – a skill set the KingAlarm founders developed over decades in the alarm and monitoring business.

Many developers treat security as an afterthought, engaging specialists after construction is largely complete, Azar Sr said. Azar Developments intends to reverse that approach.

“A lot of the time when we at KingAlarm come into properties people have bought, we’re adding security. But in many instances, you can see that security by the developers is maybe a little bit more of an afterthought instead of integral from the design stages,” he said. “Security will never be an afterthought. It will always be something that is very integral from the conceptualising stage of design.”

That philosophy will influence everything from building layouts and infrastructure placement to camera systems, automated locks, home automation technology and alarm monitoring.

“The projects are pending approval”, but Azar Snr expects approvals and construction to begin in late September. KingAlarm is targeting completion of its first development during the latter part of 2027. Management expects to maintain at least two active developments simultaneously over the next three to four years.

The company’s pipeline extends beyond the first two projects. Properties have already been acquired in Norbrook, Barbican Road, Lady Musgrave Road, Drax Hall and within Kingston’s Golden Triangle, among other locations.

The expansion is also becoming a generational undertaking. At the centre of it is John Azar Jr, 24, who will take a lead role in the development portfolio.

Azar Jr said his passion for real estate stems from the process of transforming ideas into tangible projects. The elder Azar said all four of his children, along with his wife, have been involved in shaping the vision, design and planning of the projects.

Jamaica’s real estate sector has seen increased valuations since the start of the pandemic, with listed entities carrying property portfolios posting revaluations that have outpaced government paper rates and the volatility of the stock market.

neville.graham@gleanerjm.com