Financing Marinas, Boat Slips and Waterfront Assets
First National provides commercial marina financing for qualified borrowers acquiring, refinancing, improving or developing marina properties.
For more than four decades, First National has originated, underwritten, closed and serviced commercial real estate loans. As a principal lender, First National provides its own capital, performs its own underwriting and makes its own lending decisions.
Marinas are specialized operating properties. Wet and dry storage, slip configuration, occupancy, rates, water access, physical infrastructure, management, ancillary operations and future capital requirements can all materially affect financial performance and value. First National evaluates the real estate and the operating business together.
Financing for qualified marina acquisitions, refinancing, dock improvements, facility expansion and major renovations.
For more than four decades, First National has financed commercial real estate transactions with experienced underwriting and credit review.
First National considers financing for qualified wet and dry marinas for acquisition, refinancing, bridge financing, construction, major renovation and capital improvements.
Minimum Loan Amount: $3 million
Typical Loan Size: $12 million to $15 million
Maximum Loan-to-Value: 65%
Each transaction is individually underwritten, and final loan terms depend upon the property, borrower, sponsorship, financial performance, collateral and other underwriting considerations.
Marina underwriting requires a review of both the real estate and the marina operation. High occupancy and strong waterfront real estate matter, but they do not tell the full story.
First National may consider:
The goal is to understand whether the marina’s cash flow is sustainable and what capital may be needed to maintain the property over time.
Marina infrastructure can create significant future costs, even when current performance is strong. First National may review:
These issues do not necessarily prevent financing, but they must be identified and understood.
For acquisitions, First National may review value, borrower equity, cash flow, management experience, property condition, capital needs and the post-acquisition plan.
For refinances, existing debt alone does not determine loan proceeds. First National evaluates current value, sustainable performance, leverage and borrower financial capacity.
For construction or major improvements, First National may review the budget, plans, permits, contractor qualifications, contingency, borrower equity and project timeline. Any appraisal used by First National is ordered directly by First National.
Preparing for marina financing starts with understanding what a lender will evaluate. Our complimentary guide covers wet and dry storage, occupancy and rates, ancillary revenue, infrastructure, water access and permits, and First National’s published marina program parameters.
It also outlines a borrower package to help you organize the information typically needed before starting a financing conversation.
Owners, purchasers and qualified sponsors seeking financing for wet or dry marina properties are invited to contact First National for an initial review.
Marina underwriting requires an understanding of both commercial real estate and marina operations. High occupancy and attractive waterfront real estate are important, but they do not provide a complete picture.
A marina with very high occupancy may appear strong, but First National also looks at whether slip and storage rates are competitive. The review also considers whether demand has been durable over time and what types of customers are producing the occupancy.
Marina revenue may come from wet slips, dry storage, fuel, service and repairs, haul-out activity, retail, food and beverage, and other ancillary operations. First National looks at how much cash flow comes from recurring storage operations and how much depends on more variable business lines.
First National also considers infrastructure, water access, management and future capital requirements. The goal is to understand whether the marina can sustain performance and customer demand over time.
First National considers financing for qualified wet and dry marina properties, including acquisitions, refinancing, bridge financing, construction, major renovations and capital improvements.
First National considers qualified assisted living, memory care, independent living, skilled nursing and Continuing Care Retirement Community properties.
The marina program has a maximum loan-to-value of 65%. Final loan terms depend on the property, borrower, sponsorship, financial performance, collateral and other underwriting considerations.
First National evaluates both the real estate and the operating business. Underwriting may consider wet and dry storage, slip configuration, occupancy, rates, operating history, management, ancillary businesses and the physical condition of the property.
Not by itself. First National also considers whether rates are competitive, how durable customer demand has been, the types of customers producing the occupancy and whether the property faces significant future capital requirements.
Underwriting may consider docks, seawalls, bulkheads, pilings, utilities, dry-storage facilities, boat lifts, fuel systems and other infrastructure. Water depth, channel access, dredging requirements and anticipated future capital needs may also be relevant.
Yes. Qualified construction and major improvement projects may be considered. Review may include construction budgets, plans and specifications, permits, contractor qualifications, borrower equity, contingencies and the project schedule.
Yes. Marina revenue may also come from fuel, service and repairs, haul-out activity, retail, food and beverage and other ancillary operations. First National evaluates how much sustainable cash flow comes from recurring storage operations compared with more variable sources of revenue.
