Marina Debt Consulting
This marina project includes a 75,000 sf dry dock boat storage facility, 400 wet slips, a restaurant, pool, shower and laundry facilities, boat sales and a bait and ice store. After being purchased in 2006 by another investment firm, the property was operating at a negative cash flow and investors were considering bankrupting the project as they struggled to carry the property. The ownership group retained TRG management to fully assess the real estate and financial structure of the marina.
After being engaged in the project, one of the principals of TRG did a complete project analysis and prepared a turn-around strategy that addressed both operational and financial opportunities. This included immediate and ongoing dredging to maintain the entrance channel and boat basin, emptying of the spoil site for maintenance dredging, replacement of forklifts, electrical updates from bulkhead to floating docks, replacement of the ship store dock along with three other boat docks, replacement of all dock pilings and an upgrade to the fire protection system in the dry boat storage facility. The ownership group and the lender accepted the turn-around plan, which resulted in a reduction in valuation of the existing mortgage from $16.5 million to $9 million.