Marina Cap Rate
At our office, we currently have two Marina's we're potentially listing.  Would anyone know where to find the resources to calculate the cap rate for Marinas/Campgrounds?


[{"id": "cyqm2zg", "text": "Usually talking to appraisers who've done those are best bets.  Depends how active that market is, but if it's not, check with MAI appraiser online search and go from there. ", "replies": [{"id": "cyqrxvu", "text": "Thank you. It's been difficult to determine a good cap rate to go with since the property is so unique. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cyqr7ru", "text": "Do the owners not have financial information that would be available to you? ", "replies": [{"id": "cyqrnw3", "text": "Of course, we have them. I'm trying to determine a cap rate to give the sellers  to determine what our price point should be to put on the market. So I'm trying to find on average where the cap rates for marinas/RV campgrounds to give our clients a fair evaluation.", "replies": [{"id": "cyqrzel", "text": "ohh, gotcha. Is the Marina/Campground owner also managing the business, or do they have it leased (JellyStone or something of the sort?) ", "replies": [{"id": "cyqs7gt", "text": "yeah the owner is running it with paid employees. my co-agent is meeting with the clients to try to get them to list with us. they were doing for sale by owner. it's on a lake in SC between the border with GA. the business includes the marina, storage, RV campgrounds, and a restaurant on almost 100 acres.", "replies": [{"id": "cyqu8m0", "text": "While not always the case, since the owner is also the user it'll probably change who your buyer will be. \n\nInvestors will look at the CAP rate, discover that they will be responsible for leasing the property back or have to take over management responsibilities, and move on down the road. It sounds like your buyer will more likely be a user, someone like the current owner.  Not always the case, and I hope you prove me wrong and make the deal!\n\nBest of luck, and boy do I wish I was at a marina right now with a 100 acres to play on. \n", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cyudenw", "text": "With class A retail and office, I've seen brokers and appraisers arguing 50bps or 100bps differences in what they think the cap rate should be. A Florida Marina I did valuation work on in 2006/2007 had disagreement as to if it should be a 6 or an 11 cap (500bps). The appraisal institute has not done a very good job defining valuation techniques on these and your best bet is probably doing a national search for Marina sales, followed by cold calling whoever you can in the transaction to see if you can get a yield or cap rate from them.\n\nEdit - as others have mentioned, using an appraiser would probably be best if you can afford it. Here is one of the few pages with valuation resources if you are estimate it on your own: http://www.marinaappraisal.com/marina-cap-rates/", "replies": [], "depth": 1}]