The Next Institutional Frontier: Marinas, RV Resorts

Since we’ve recovered from the pandemic and are no longer confined to our homes as we were during the worst of the outbreak, there has been an increase in this trend, which started as we started to come out of the pandemic and has continued ever since.

The “get-outside-and-live” trend has been a goldmine for rustic accommodation, RV-friendly resorts, and marinas for all kinds of sailing vessels. This bonanza is drawing more and more attention from commercial real estate investors seeking for a promising area of expansion.

Monarch Alternative Capital, an investment company with nearly $11 billion in assets under management and dual headquarters in New York and London, is the most recent player to wager on the great outdoors. Monarch announced this week the launch of Go Outdoors, a platform to acquire, develop and operate marinas and RV resorts across the US.

“Monarch believes these sectors are historically overlooked real estate asset classes which benefit from attractive growth tailwinds and are in the early stages of institutionalization,” the company’s statement said.

According to Monarch, RV resorts and marinas profit from favorable business fundamentals that allow them to generate stable, brisk rental income growth. The availability of new marinas and RV resorts is constrained by a stringent regulatory environment, a lack of suitable land, and the capital intensity of new ventures, according to the business.

Renting of docking, storage, and RV pads is becoming more and more popular as recreational boat registrations, boating engagement, and RV ownership soar. According to the National Marine Manufacturers Association, recreational boating is currently a $250 billion business.

 

Source:  GlobeSt.