Lazy Days Marina is a trophy property located 45 minutes north of Atlanta. Aqua Marine Partners (AMP) purchased Lazy Days in 2006 and financed the acquisition. Due to the Great Recession, the NOI had decreased, thus impacting collateral value. The loan was restructured in 2012 with a share of any net sales proceeds to go to the lender. Lender consent to a sale was also required. The loan was now maturing and needed to be paid off through refinancing or a sale. Since refinancing would require additional equity, AMP made a decision to sell.
The listing was taken to the market unpriced, as there had been no recent sales of comparable lake marinas near major metropolitan areas. We were confident that the property would get sufficient interest to validate a market price due to its large size and its proximity to Atlanta, offering the potential for strong offers. Marketing began at the end of July 2015. While the property was exposed to the market through our database and website, the primary method of generating interest was direct calls to only the qualified prospective buyers in our database. After initial positive feedback, Andrew Cantor set a Call for Offers date in early September.
The Call for Offers was successful, generating five offers from qualified bidders including three of the largest marina owners in the nation. The winning bidder was Westrec Marinas, one of the nation’s largest owner-operators. Westrec’s price equated to an 8.25% cap rate on in-place NOI, which is considered very strong as most lake marinas trade for 9% to 11% cap rates. Subsequent to acceptance of the LOI there was a delay during which AMP had to obtain lender consent to the sale. Andrew Cantor managed the buyer’s expectation regarding this issue and once approval was obtained a PSA was signed. The deal team managed the closing process and the transaction closed after one more delay due to the Army Corps of Engineers not acting on the transfer of the lease for several weeks. In March 2016, the sale closed consistent with the terms of the contract.
“The Colliers Team is a fantastic group of brokers who care about their clients. They ran a great process for us in the sale of Lazy Days Marina that resulted in multiple offers and a sale price that exceeded our expectations."
– Andrew Sturner, Chairman, Aqua Marine Partners