Opinions on Marinas?

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September 30, 2024

by a searcher from Columbia University - Columbia Business School in New York, NY, USA

I know there a a few large funds doing rollups in this space - but I am curious on the viability of acquiring a marina through a self-funded search. Servicing debt with cash flows appears to be the biggest challenge - is this more of a real estate play?

Anyone with relevant experience or opinions?

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Reply by a searcher
from University of Pennsylvania in Seattle, WA, USA
I seriously looked at buying a marina. Great business but lending on it was difficult. The max loan I was able to get was 50% of the deal, which required a substantial equity check that I didn't want to raise. Depending on how it is setup it can be a mix of RE/Operating. The one I looked at was doing a ton of services/cross selling - fuel, repairs, rentals, storage, etc.

I wouldn't say it is a typical self funded deal but they can be serious money makers if you are able to make it work. Really nice built in moat too because environmental concerns and geography typically make it quite difficult to add new marinas. The one I looked at was lake based and due to zoning there was not a realistic possibility of another competitor on the same body of water.
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Reply by a searcher
from University of Texas at Austin in Austin, TX, USA
I come from a real estate acquisitions background, and have looked at marinas in the past. In many ways if the leases are annual you can look at them similar to the way you would look at the acquisition of a commercial property.
Many marinas are mom and pop operations, so I would think if you found the right sellers you may be able to get creative with seller financing. I think there is still potential in the space.
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