Monarch Alternative Capital LP, an investment firm with approximately $11 billion of assets under management, has formed Go Outdoors, a platform to acquire, develop, and operate marinas and RV resorts across the United States.
Monarch launched the platform with the recapitalization of two large-scale portfolios and partnered with Safe Harbor Development, an experienced owner-operator of recreational developments, to manage the existing portfolios and help grow the platform through acquisitions and development. 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 platform will initially comprise 11 marinas and 4 RV resorts, including more than 5,500 marina slips and more than 500 RV pads located throughout Georgia, New York, Pennsylvania and Tennessee.
Monarch was attracted to the differentiated attributes in the marina and RV industries and believes the existing portfolio exemplifies these strengths. Marinas and RV resorts benefit from attractive industry fundamentals enabling them to produce robust, high growth rental revenues. A strict regulatory environment, scarcity of available land, and the capital intensity of new developments result in high barriers to entry, limiting the supply of new marinas and RV resorts.
Additionally, shifting consumer preferences toward leisure experiences, as exhibited by higher levels of recreational boat registrations, boating participation, and RV ownership, have led to increasing demand for docking, storage, and RV pad rentals.
SOURCE: Monarch Capital news release