2024 March/April Marina World

BUYING & SELLING MARINAS
The sale of Lighthouse Point Marina was
a premier transaction in a location where
each slip is typically valued at US$300,000.
the way up through to New York. The
deal size on closed transactions varies
from somewhere between US$7 to 25
million. However, that being said, we
have worked on and continue to work
on deals that are US$4 to 7 million and
much larger marinas in the US$100
million range.
Q: During this two year timeframe,
has there been increased interest
and what types of marinas are most
sought after?
CW: Over the last several years we
have seen an increasing demand for
marinas, and I think this was inevitably
a result of COVID and people wanting
to get away from people and crowds
(where else but on your boat at sea).
We already know boat sales are way
up as a result and given Florida’s all
year-round boat market it has been
a real destination for all, or at least
on their radars, and given that these
boating markets were only shortly
impacted from lockdown restrictions
they performed well given the
circumstances.
There is also a decreasing supply
of marinas due to the ever-growing
waterfront luxury real estate and
condo markets. There have been many
instances of waterfront marina/boatyard
operations that turn into some new high
rise development to maximise the land
use and gentrification. Private Equity
and REITs were never on the radar for
There is an increase in dry storage
demand especially as racking and boat
moving technology develops. Current
Capital sold Stump Pass Marina within the
past two years.
the marina industry, I think because
marina assets can be quite complex
real estate asset classes compared to
your typical cookie cutter multi-family,
industrial or retail properties. I think
when SUN Communities purchased
Safe Harbor Marinas in 2020 for
US$2.11 billion that brought a whole
new set of eyes to the table and interest
from all over the world, because who
wouldn’t want to own waterfront real
estate in a thriving market and asset
class?
There is an increase in dry storage
demand as the racking and building
possibilities grow with new technologies
for larger boats, along with increasing
forklift capabilities, which all in allow
for a safe secure indoor environment
to house boats. However, given the
ever increasing size of yachts and
superyachts these days, if the water
depths are deep enough to support the
vessels, you will find all these wet slip
marinas are usually pretty full. People
with 50/60/70/80ft+ boats obviously
take up more space (which space is
limited) and the desire for bigger and
better isn’t going anywhere.
CJ: The pandemic clearly increased
the demand for boats…but the lowest
interest rate environment in my 52+
year career provided an opportunity for
basically everyone to go purchase their
“28ft centre console” fishing/day boat.
So, we’ve had an enormous increasing
demand.
Also, in Florida in 1989, the Florida
State Legislature enacted the Manatee
Protection Plan (MPP) for 13 counties.
The MPP ensures the long-term
protection of manatees within specific
county boundaries. Each of these 13
counties is now allowed a maximum
number of vessels collectively (both dry
and wet). So, for example, if a county
is limited to 5,000 boats, and it already
has 4,850 vessels, one could only add
150 racks/wet slips – irrespective of
the demand for same. This has really
put a damper on the supply side of the
equation.
MA: The past two years have continued
to see a spike in marina acquisitions
fuelled by new funds and groups
entering the market. Investors are
attracted to marinas due to the limited
waterfront and therefore limited spaces
to build marinas, attractive cap rates
and accelerated depreciation. Add
to this the appeal that waterfront
properties have.
Various factors have continued to
accelerate and keep the marina market
strong and attractive: new funds and
www.marinaworld.com – March/April 2024
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