Marina Financing

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

Marinas are one of the most operationally complex specialty property types in commercial real estate. A typical marina combines real estate (the upland, the in-water slips, the dry stack), an operating business (boat sales, fuel, ship store, restaurant, valet service), and significant regulatory exposure (Army Corps permits, state coastal commissions, EPA stormwater rules, local harbor authorities). The financing universe reflects that complexity: the lender bench is narrow, deeply specialized, and heavily relationship-driven. Active capital sources include SBA 504 and 7(a) for owner-operator acquisitions, a small group of specialty marine and recreation banks, regional banks with marina expertise, and increasing private credit appetite for institutional consolidator strategies.

Get a Marina Quote →

Marina Financing Snapshot

Typical loan size
$2M to $50M
Maximum LTV
60 to 75 percent (depends on capital source)
Typical DSCR floor
1.30x to 1.50x
Term
5 to 25 years
Recourse
Typically recourse on smaller deals; non-recourse possible at scale
Typical cap rate (Apr 2026)
8.00 to 11.00 percent
Construction financing
Limited; specialty banks and SBA 504 only
Lender count actively quoting
Approximately 15 to 25 nationwide

Where Marina Loans Come From

Marina financing requires a lender that understands the operating business as well as the real estate. Most general bank balance sheet lenders pass on marinas because the operating risk and regulatory exposure are outside their underwriting box. The active marina lenders are a mix of SBA-active community banks, two or three specialty marine and recreation banks, regional banks in coastal and Great Lakes markets with marina experience, and a small private credit bench focused on institutional marina consolidator strategies.

Capital Source Rate Range (Apr 2026) LTV / Down Best Fit
SBA 504 Bank 1st 6.75 to 7.75% / CDC 5.50 to 6.00% fixed 90 percent (10 to 20 percent down depending on classification) Owner-operator acquisitions and refinances $2M to $20M total
SBA 7(a) Prime + 2.25 to 2.75% (9.75 to 10.25%) 90 percent Owner-operator $1M to $5M, working capital + real estate combined
Specialty marine bank 7.25 to 8.75 percent 65 to 75 percent Stabilized $5M to $25M with deep marina sponsor experience
Regional bank balance sheet 7.00 to 8.50 percent 60 to 70 percent Stabilized $5M to $20M with depository relationship
Private credit / debt fund 10.00 to 13.00 percent 65 to 75 percent LTC Acquisition + value-add or consolidator portfolio plays $15M+
CMBS conduit 7.50 to 9.00 percent (rare) 60 to 65 percent Trophy stabilized $20M+ with strong sponsor and predictable NOI

Pricing is indicative and reflects active CLS CRE quote pipeline as of April 2026. Actual pricing depends on property condition, sponsor profile, deal size, and market dynamics.

Typical Marina Deal

Marina deal sizes range from $2M for small wet-slip-only operations in secondary lake markets to $50M+ for trophy properties in Florida, Newport, the Hamptons, and similar premier coastal markets. Per-slip pricing varies enormously by location: a wet slip in a Midwest lake market might trade at $25,000 per slip, while a trophy slip in South Florida or Newport can trade at $200,000 to $500,000 per slip.

Sponsor profiles split into three categories. Owner-operator marina families using SBA 504 dominate the $2M to $10M segment and typically own one to three properties. Mid-market consolidators (regional roll-ups) operate the $10M to $30M segment and have begun aggregating boutique marinas into 10 to 20 property portfolios. Institutional consolidators (Suntex, Safe Harbor, IGY Marinas) target trophy properties and full portfolio acquisitions in the $30M+ band.

Operating revenue mix for a typical marina includes 50 to 70 percent slip rent, 10 to 20 percent fuel sales, 5 to 15 percent ship store and ancillary, and 5 to 15 percent service and storage. Lenders carefully evaluate the durability of each line. Slip rent is the most reliable; fuel and ship store are operating-business income that lenders haircut more aggressively.

Marina Underwriting Considerations

Marina underwriting evaluates the real estate, the operating business, and the regulatory environment in equal weight. Lenders that close marina deals understand that the property is a hybrid asset and underwrite accordingly.

Common Marina Financing Pitfalls

Marinas have more financing failure modes than almost any other specialty property type. Most failures cluster around regulatory risk, lease term issues, and sponsor experience gaps.

A Real Marina Deal

On an $11M acquisition of a 142-slip wet-slip and 80-unit dry stack marina in a Sun Belt market, the sponsor was a second-generation marina family with three other facilities under management. The deal had clean Army Corps permits, a 35-year remaining submerged land lease from the state, and stable 88 percent slip occupancy with diversified ancillary revenue. Conventional bank balance sheet declined the deal because the bank had no marina experience. SBA 504 was available at 90 percent LTC but the deal size pushed against the SBA exposure cap. A specialty marine bank quoted at 70 percent LTV with partial recourse, a 5-year fixed-rate term at 7.85 percent, and full operating covenants tied to slip occupancy and DSCR. The sponsor took the specialty bank execution because the marine bank's operating expertise was valuable beyond just the loan terms; the lender's covenant flexibility and willingness to underwrite seasonal NOI patterns made the deal close where conventional bank execution would have failed.

All deal references anonymize borrower and lender identities and use city-level geography only.

Marinas are not really financed; they are underwritten. The lender that closes a marina deal is the lender that understands the lease structure, the permit risk, the dock replacement reserves, and the operating business. There are maybe 15 to 25 of those lenders in the country.

Other Specialty Property Financing

Marina Financing FAQ

Yes. SBA 504 and 7(a) both finance owner-operator marina acquisitions. SBA 504 is the more common path for $2M to $20M total project sizes, structured at 90 percent LTC with a CDC second lien at fixed rate. SBA 7(a) is used for smaller transactions or when working capital and inventory are bundled with the real estate.
Bank balance sheet marina loans typically run 5 to 10 years fixed with a 25 to 30 year amortization. SBA 504 runs 10, 20, or 25 year fixed. CMBS and private credit run 5 to 10 years. The shorter bank term is the standard for the asset class because lenders want recurring renewal opportunities.
Marinas are operationally complex assets that require lender expertise in operating business underwriting, regulatory and permit risk, lease structure analysis, and environmental exposure. Most general bank balance sheet lenders do not have the in-house expertise and pass on the asset class. The active marina lender list is primarily SBA-active community banks, two to three specialty marine banks, and a small group of regional banks in coastal and Great Lakes markets.
Marinas typically operate under a combination of Army Corps of Engineers permits, state coastal commission approvals, and submerged land leases from state or local authorities. Lenders require these to be in place and transferable, and require submerged land lease terms to extend through the loan maturity (typically 25+ years remaining). Properties with shorter remaining lease terms face refinance challenges.
Coastal marinas require named storm, wind, flood, and storm surge coverage. Inland and lake marinas require general property and liability coverage. Pollution liability is required given fuel and antifouling exposure. Environmental impairment coverage may be required depending on operating profile and Phase I findings. Insurance can run 5 to 12 percent of revenue in high-exposure markets.
Limited. CMBS conduits will quote non-recourse on trophy stabilized marinas at $20M+ with strong sponsors. Private credit will quote non-recourse on $15M+ institutional consolidator strategies. SBA and most specialty marine banks require recourse from the operating company and personal guarantees from owners of 20 percent or more.
Slip rent is typically underwritten at 100 percent of trailing 12-month receipts. Fuel revenue is haircut by 20 to 40 percent depending on margin volatility. Ship store, service, and brokerage income are haircut by 30 to 50 percent. Restaurant income is sometimes excluded entirely if operated by a tenant.
Lenders require capital expenditure reserves to fund dock replacement, dredging, fuel system replacement, and infrastructure renewal. Reserves typically run $5,000 to $20,000 per slip per year depending on dock age, exposure, and replacement cycle. Reserves are escrowed monthly and released against approved capital expenditure invoices.

Get a Marina Loan Quote

Tell us about your marina deal. We will run it past lenders that actively fund this property type and send back terms within 48 hours.

Apply for Financing →
Or call us: 310.758.4042

Weekly Market Intelligence

Rate updates, deal insights, and capital markets analysis. One email per week. Unsubscribe anytime.

No spam. No selling your data. Just market intelligence from a working broker.

Need financing? Apply in 2 minutes. Response within 24 hours.
Apply Now →
📈

Before You Go…

Get matched with the right lender from our network of 1,000+ capital sources.

Or call us: 310.758.4042

No spam. Unsubscribe anytime.