Marina developments, resorts, dockominiums, dry storage racks, waterfront resort hotels and fractional ownership condominium projects are developed in prime waterfront areas utilizing a variety of partnership structures.

Typically, most of our development projects are owned and funded through private relationships or initiated through Private Placement Memorandums sold by Licensed Investment Advisors or Licensed Brokers.

Participation structures normally fall into 5 basic categories.

1. MARINA PARTNERSHIPS

In the marina partnership (corporation), a primary partner or investor group provides funding for the development project including all soft and hard deposits, development capital, operating capital and mortgage, bridge or construction loans.

The "funding" partner or group receives 100% of the operating profits during the first year of ownership and 50% of the project's total projected profits from the sale of converted or developed units. Funding partners typically exit between 13 and 18 months via a soft sale.

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2. JOINT VENTURE AGREEMENTS

In a joint venture, a partner contributes capital, credit, services or any combination for the purchase or development of a marina or resort property and receives a designated portion of the property as security for the capital investment. The agreement is a structured real estate transaction.

In another type of joint venture, a partner contributes property as their share of the development project and receives a portion of the proceeds relative to the value of the property in the total development.

The term of the Joint Venture is usually as short as eighteen months and as long as five years depending on the scope and complexity of the project.

It is considered SENIOR to the marina partnership and is only available to accredited investors, developers, builders or marina owners.

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3. PRIVATE PLACEMENT MEMORANDUMS

A PPM is a private stock offering and may be used to purchase a marina property that will be expanded and run on a rental basis while the property appreciates to an optimum "selling" level. A PPM stock offering is a type of security, not a real estate transaction and is typically only available to accredited investors.

The terms of PPM offerings differ as greatly as the reasons for selecting this structure. They are typically a 5 to 10 year investment strategy.

Private Placement Memorandum (PPM) continued...

A PPM structure distributes the risk and its earnings over a larger playing field and are normally associated with projects that require over $20MM in funding. They have a lower cost of entry and will typically produce more conventional annual returns during the first few years of ownership. The highest returns on investment are normally produced on exit.

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4. EQUITY CONVERSION AGREEMENT

A buyer participates in the funding and development of the marina by purchasing a portion of the marina's real estate prior to conversion. The marina partnership re-purchases the units from the buyer for a predetermined price as blocks of the marina's converted inventory are sold as part of the Phase One offering.

The term of an Equity Conversion Agreement is normally one to three years and the buyer can expect a return of 50% to 100% depending on the project.

Equity Conversion Agreement's are SENIOR to PPM's, joint venture agreements and the marina partnership.

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5. EQUITY PARTICIPATION AGREEMENTS

A buyer makes a fee simple purchase of multiple wet slips, dry rack spaces, condos or commercial condo units at substantially discounted prices and terms. The agreement is a structured real estate transaction with fee simple deeds or leases to the units purchased.

The term of an Equity Participation agreement is normally one to three years and the buyer can expect a return of 15% to 30% based on the discounted purchase price from current market and ongoing appreciation.

Equity Participation's are SENIOR to Equity Conversion agreements, PPM's, Joint Ventures and the Marina Partnership. Click Here to be notified of Equity Participation Opportunities

6. RENTAL INCOME AGREEMENTS

The buyer makes a fee simple real estate purchase of one or more slips or racks,with or without leverage, and takes the net rental payments as regular monthly income.

The purchase in most markets produces a return in excess of 10% annually. Some of the income can also be covered with straight-line depreciation.

The Income Agreement is the most secure investment strategy and is senior to any other agreement or participation. Click Here to receive information from Rental Management Companies