Boat And RV Storage Preferred Equity Development Offering On CrowdStreet

Real estate investment platform CrowdStreet launched an equity investment offering for two boat and RV storage facilities in metropolitan Charlotte, North Carolina, and Nashville, Tennessee.

The ground-up development of two storage facilities will offer a combined total of 545 parking and storage spaces. Investors potentially will receive quarterly distributions. When construction is complete, both properties will undergo a 14-month lease-up period, with project stabilization expected in the third quarter of 2024.

Madison Capital Group LLC pursued this venture because of the growing demand for off-road vehicle storage driven by the skyrocketing boat and RV ownership rate. According to a study by Go RVing, RV sales spiked by 33% in 2021, and the 2022 results are expected to reflect record sales numbers again. The National Marine Manufacturers Association found 2021 powerboat sales surpassed 300,000 units for the second straight year. In 2020, boat sales increased by 12% year over year (YOY) for personal watercraft, 20% YOY for wake boats and 12% YOY for pontoon boats. With the rise in demand for boats and RVs and the increasing rate at which they are being purchased, increased demand for a place to store them will follow. 

Owners of boats and RVs are increasingly preferring facilities for storage as opposed to keeping them parked on their property. Storage facilities provide an added element of security. Storage facilities with fully canopied parking like with this development are protected from exposure to precipitation, sunlight and wind.

According to market research firm Yardi Matrix, “Although it remains relatively small compared to other niche segments of commercial real estate, the industry registered record-high capital flow in 2021, a sign that investors are increasingly taking notice. Some $157.7 million of RV/boat exclusive facilities were sold in 2021, almost triple the previous annual high.”

Madison Capital Group is the sponsor of the development. Madison Capital has extensive experience in this sector, operating seven boat and RV storage facilities in four states with a stabilized occupancy rate of 95%. 

The full-service private equity real estate investment and development firm focuses on the multifamily, retail, self-storage and boat and RV storage sectors. The group has over $2.4 billion in assets under management and total portfolio activity above $3.12 billion. 

The minimum investment for the Boat & RV Storage Preferred Equity Development is $25,000 and is open to investors on CrowdStreet.

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