Monarch Alternative Capital has unveiled its new venture, Go Outdoors to acquire, develop, and operate marinas and recreational vehicle (RV) resorts across the US.

The global investment firm managing approximately $11 billion in assets, will target historically overlooked real estate asset classes that demonstrate promising growth potential.

To kick-start Go Outdoors, Monarch Alternative Capital has initiated the platform by recapitalizing two expansive portfolios. In partnership with Safe Harbor Development, an experienced owner-operator of recreational developments, Monarch Alternative Capital will manage the existing portfolios and work towards expanding the platform through strategic acquisitions and development efforts.

The investment firm believes that marinas and RV resorts offer unique investment opportunities due to their attractive growth prospects and the early stages of institutionalization within these sectors.

Darby Campbell — Safe Harbor Development founder and president said: “At Safe Harbor Development, we have been at the forefront of the industry for over 20 years. The recreational development space continues to grow strongly, so we believe it was the best time for Safe Harbor Development to expand along with the industry.

“As we look ahead, we are excited to be partnering with Monarch on Go Outdoors. Their extensive investing and execution capabilities and commitments align with our goals of bringing exceptional offerings and experiences to our customers. We believe their investment will allow us to grow and achieve our goals on a greater scale.”

The initial composition of the Go Outdoors platform includes 11 marinas and four RV resorts, encompassing over 5,500 marina slips and more than 500 RV pads. These properties, situated across Georgia, New York, Pennsylvania, and Tennessee, are characterized by their high-quality services and upscale amenities, catering to the needs of their guests.

Monarch Alternative Capital recognizes the distinct advantages associated with the marina and RV industries, which are evident in the existing portfolio. Marinas and RV resorts benefit from favorable industry fundamentals, generating robust rental revenues with high growth potential. Stringent regulatory frameworks, limited availability of land, and significant capital requirements for new developments create substantial barriers to entry, effectively constraining the supply of new marinas and RV resorts.

Furthermore, shifting consumer preferences towards leisure experiences, as evidenced by increased recreational boat registrations, boating participation, and RV ownership, have spurred greater demand for docking, storage, and RV pad rentals.

By establishing a substantial institutional platform, Monarch Alternative Capital aims to leverage operational capabilities, capitalize on economies of scale, and deploy long-term capital to acquire additional properties throughout the US capitalizing on the highly fragmented market.

Ian Glastein — Monarch Alternative Capital Managing Principal and Co-Head of Real Estate said: “The launch of our marina and RV platform comes at a dynamic time for the industry given the attractive supply-demand fundamentals and increasing industry consolidation. We are excited to be partnering with Safe Harbor Development, who we believe is a best-in-class operator and pioneer within both the marina and RV resort spaces and will help us achieve our growth and execution objectives.

“We believe our asset management expertise and access to capital will support the continued success of the platform and favorably position us to capitalize on this unique opportunity set.”

  Darby Campbell, Go Outdoors, Ian Glastein, Monarch Alternative Capital, Safe Harbor Development, USA