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The valuation of marinas for sale is one of the most challenging appraisals to perform respective of the fact that they often contain a lot of moving parts, so to speak.

What often comes the question from Realtors, assessors, appraisers, and marina operators is how does one draw the line between valuing the marina real estate and the marina for sale operation business itself. The marina real estate in the case of a marina for sale essentially includes the value of the marina buildings, boat storage area and the value of the slips themselves. The business elements of a marina for sale include sales of parts, fuel, boat repairs, food, and sundry items that are unrelated to the marina real estate. These are the elements that would be valued by a marina business valuation expert.


Marina Income Elements:
– Slip rentals
– Boat storage rental income
– Economic value of the various buildings
– Car Parking
– Mooring rates
– Shipyard
– Events
– Yacht Brokerage

The expense of a Marina:
• Reserve for a replacement for each of the marina physical elements would include the slips, marina buildings, the fixed docks, bulkhead, and maintenance of the marina basin. Marinas, being positioned on the water, are often subject to harsh weather conditions which can accelerate the depreciation of the marina structures. The appraiser should estimate the replacement cost of the marina structures, determine an appropriate depreciable life and essentially establish a sinking fund for monies that need to be put aside annually to account for the replacement of the various elements.

• Labor costs are often an element that one would associate with the business end of a valuation. However, in order to run, service and maintain the various physical elements, manage the boat yard, provide accounting for the physical elements, the marina staff is needed. Depending upon the size of the boatyard, one would typically account for having a general manager, a bookkeeper and at least a couple skilled laborers that will maintain the yard, the docks and the services that are provided to the boaters, which typically include: water, electric and cable. The skilled laborers are a perfect example where the physical asset and the maintenance of such are inseparable.

• Utility costs would cover the basic utilities supplied to the slips, water, electric, and sometimes cable which are typically supplied to the slips. Other utilities might also be provided to an administration marina building and/or marina buildings used for boat storage and yacht repair of boats.

• Insurance, providing for hazard and liability for the boatyard and site improvements as well as workman’s compensation for the minimum marina staff required on site.

Marina Miscellaneous expenses:
Trash removal (as boaters tend to generate a good deal of trash), landscaping, advertising, telephone, office supplies, professional services, marina yard supplies (items such as decking for docks, cleats, hoses, brackets used on the docks, electrical supplies and floatation devices that sometimes need to be replaced). Other elements that are related to the collection of marina yard fees such as bank charges, collections, and filings are all directly supportive of the on-site infrastructure.


Effective gross income from marina operations:
Less Expenses:
– Insurance
– Marina Staff Wages
– Benefits & Taxes
– Marina Reserves
– Utilities
– Miscellaneous

Total Expenses:
Net Marina Operating Income:
xxxx.xx capitalized @ xx.x% = value estimate

The in’s and outs of marinas
Marinas for sale are one of those types of properties that are heavily regulated by government agencies, in this case, and more prominently. The policing of businesses that use or come in contact with environmentally hazardous materials is at an all-time high. In the case of marinas, the biggest environmental element to deal with is the approval, removal, and then dumping of spoils from the boat basin. The term “spoils” refers to the sediment that is dredged from the bottom of the boat basin.

Every application for the dredging of material from a boat basin must be based on technical studies and guidelines on samples of the dredged material. This is a process that has become more onerous and quite costly over the past twenty years with marina operators sometimes spending tens of thousands of dollars just for the testing and approvals. Unfortunately, without a boat basin with a reasonable depth to accommodate boats, there is no marina. Further complicating the process has been the frequency of storms in recent years, namely Hurricane Irene and Sandy which sometimes dumped many yards of sediment material in basins. This appraiser has worked with a couple of marinas in Southern Connecticut that had, just prior to the hurricanes finished dredging their basins, only to have material dumped in their basins again, essentially starting the testing and dredging process all over.

Do you want to buy or to sell a Marina business? We can evaluate the Marina for sale for you. We can help you to make your marina business profitable for you.

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