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Marinas are perceived of as an operating business akin to hotels which combine real estate attributes with significant operational risk. Marinas,
however, share characteristics similar to apartment communities that have leases executed by individuals for one year terms, combined with amenity packages including a pool, club room and
public outdoor space and on-site management. Vinings Marine Group recognizes the misperception and its effect on asset pricing; VMG expects to capitalize on the misperception and create
value for its investors.
Capital Sources
Lending sources for marina properties are limited. Unlike the institutional lending environment that exists for other assets classes which provides highly leveraged, non-recourse
financing allowing access to all investors, marina lending is scarce, more expensive, keeping amateur investors on the shore. Vinings Marine Group is building debt and equity relationships
that will allow VMG to capture opportunities during changing tides.
Supply/Demand Attributes
Public access to marinas and slips is decreasing as waterfront properties are being redeveloped with higher density residential condominiums and rental properties, resorts,
and hotels. As land values skyrocket, marinas are either being removed for this redevelopment or they are being reconfigured to accommodate larger more expensive boats. Vinings Marine Group,
however, sees overall demand for slips increasing. Boat manufactures are reporting increased sales; demographically, masses of people are approaching retirement when they will have more
leisure time to choose between travel, golf, or boating. Coastal towns such as Savannah, Georgia, Charleston, South Carolina, the Chesapeake Bay area, and Jacksonville, Naples, Ft. Myers,
are exploding with growth putting upward pressure on coastal property pricing.
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