RV Park and Campground Financing

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

RV park and campground financing is one of the fastest-growing specialty hospitality CRE niches in the country, fueled by the post-2020 outdoor recreation boom, RV ownership growth, and aggressive consolidation activity led by Sun Communities, Equity Lifestyle Properties (Thousand Trails), KOA, and several private equity sponsored consolidators. The asset class spans simple campgrounds with primitive sites at the low end to luxury glamping resorts with cabin rentals, restaurants, and amenities at the high end. Financing comes from SBA 504 and 7(a) for owner-operators, specialty outdoor hospitality lenders, conventional bank balance sheet for established operators, and increasing private credit appetite for consolidator strategies.

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RV Park and Campground Financing Snapshot

Typical loan size
$2M to $40M
Maximum LTV
75 to 90 percent (SBA), 65 to 75 percent (conventional)
Typical DSCR floor
1.25x to 1.40x
Term
10, 20, or 25 years (SBA); 5 to 10 years (conventional)
Recourse
Recourse on owner-operator; non-recourse possible at scale
Land value
Significant collateral; often 30 to 50 percent of project cost
Construction / expansion financing
SBA 504 ground-up and expansion common
Lender count actively quoting
Approximately 25 to 40 nationwide

Where RV Park and Campground Loans Come From

RV park and campground financing operates across multiple channels reflecting the spectrum of operator sophistication and property scale. SBA 504 and 7(a) dominate the owner-operator end of the market. Specialty outdoor hospitality lenders (Live Oak, Wells Fargo, Live Oak Outdoor Hospitality, KOA Capital Funding) compete actively at the mid-market. Conventional bank balance sheet plays at the larger end with established operators. Private credit and CMBS finance consolidator portfolio plays.

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 (real estate) Owner-operator real estate acquisition or expansion, $2M to $20M
SBA 7(a) Prime + 2.25 to 2.75% (9.75 to 10.25%) 85 to 90 percent Acquisition + improvements + working capital up to $5M
Specialty outdoor hospitality bank 7.50 to 9.00 percent 70 to 80 percent Established operators $5M to $25M
Conventional bank balance sheet 7.25 to 8.75 percent 65 to 75 percent Multi-park operators with depository relationship
Private credit / debt fund 9.00 to 12.00 percent 65 to 75 percent LTC Consolidator strategies, ground-up development $10M+
CMBS conduit 7.75 to 9.00 percent 60 to 70 percent Stabilized portfolio $20M+ with strong sponsor
Sale-leaseback (Sun, ELS, others) Initial cap rate 7.00 to 9.00 percent 100 percent Larger park acquisitions and recapitalizations

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 RV Park and Campground Deal

RV park transactions range from $1.5M for small primitive campgrounds in secondary markets to $40M+ for trophy luxury glamping resorts in destination markets. Per-site pricing varies enormously: a basic full-hookup site might trade at $20,000 to $35,000 per site in a Midwest market, while a glamping or luxury site in a destination market can trade at $80,000 to $250,000 per site. Land value floors typically run 25 to 40 percent of total purchase price, providing meaningful lender comfort.

Operator profiles split into owner-operators (typically managing one to three parks, dominating the $2M to $10M segment), regional consolidators (3 to 15 parks, running the $10M to $30M segment), and institutional consolidators (Sun Communities, Equity Lifestyle Properties, BlueWater Development, others) targeting trophy properties and full portfolios in the $25M+ band. The consolidation cycle has accelerated significantly since 2020 driven by the outdoor recreation boom and RV ownership growth.

Operating revenue for a typical RV park combines daily and weekly transient site rent (the primary cash flow), monthly extended-stay site rent (typically 60 to 80 percent of total revenue at most parks), seasonal long-term site rent (often a stable annual revenue base), cabin and lodge rental, and ancillary revenue from store, propane, laundry, and recreational amenities. Lenders evaluate the durability and seasonality of each revenue line.

RV Park and Campground Underwriting Considerations

RV park underwriting evaluates the real estate, the operating business, and the regulatory environment with significant focus on seasonality, land value, and operator experience. The asset class has matured substantially with the institutional consolidation cycle, and lender underwriting metrics have standardized.

Common RV Park and Campground Financing Pitfalls

RV park transactions have specific failure modes around seasonality, infrastructure capital expenditure, and operator experience that catch first-time SBA buyers and inexperienced consolidators.

A Real RV Park and Campground Deal

On a $7.4M acquisition of a 178-site RV park in a Sun Belt destination market, the sponsor was a second-time park operator with one stabilized property under management. The deal had 65 percent full hookup sites, 25 percent partial hookup, and 10 percent primitive, with year-round operating profile and 84 percent peak-season occupancy. SBA 504 financed the real estate at 90 percent LTC structured as a 50 percent bank first lien and 40 percent CDC second lien with 10 percent down. SBA 7(a) financed working capital and a planned bath house renovation at $850K. Total project cost was $8.25M including the renovation. The deal closed in 80 days. First-year operating cash flow came in 8 percent above pro forma supported by stronger-than-expected seasonal site rate increases. The bath house renovation completed at month 14 enabled a 12 percent rate increase on the following season's bookings, validating the planned capital expenditure investment.

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

RV parks combine real estate value (land and infrastructure), an operating business (hospitality and retail), and the longest-running consumer demand trend in CRE (outdoor recreation and RV ownership). The lender bench has matured with the consolidation cycle, and SBA 504 is purpose-built for owner-operators in this kind of asset class.

Other Specialty Property Financing

RV Park and Campground Financing FAQ

Yes. SBA 504 and 7(a) both finance owner-operator RV park acquisitions. SBA 504 covers the real estate at 90 percent LTC. SBA 7(a) covers working capital, improvements, and ancillary equipment. Most acquisitions use a combination of both programs.
RV parks are sometimes classified as special-purpose under SBA 504 rules depending on facility design and adaptive reuse value. Properties with significant land area and adaptable use cases may qualify for standard 10 percent down; purpose-built parks with limited reuse value may require 20 percent down. Confirm classification at the front end.
Yes. SBA 504 ground-up is widely used for owner-operator RV park construction at 90 percent LTC, structured as a bank construction loan that converts to a CDC second lien at certificate of occupancy. Total project sizes from $2M to $20M are typical. Permitting and zoning timelines can extend pre-construction by 12 to 24 months.
Lenders typically underwrite stabilized peak-season occupancy at 80 percent or higher with full-year blended occupancy of 50 to 70 percent depending on climate and operating profile. Northern and mountain climate parks have lower full-year blended occupancy due to seasonal closure; Sun Belt parks have higher full-year blended occupancy.
Long-term annual site agreements provide stable cash flow but limit rate flexibility and tie up site capacity. Lenders evaluate the mix of long-term annual, seasonal, and transient revenue carefully. Properties with high long-term site concentration are sometimes underwritten as quasi-residential for cash flow durability assessment.
Sun Communities, Equity Lifestyle Properties (ELS, including Thousand Trails), KOA, BlueWater Development, Roberts Resorts, and several private equity sponsored consolidators are the most active in RV park consolidation. The consolidation cycle has accelerated since 2020 and provides exit liquidity for owner-operators planning sale-leaseback or strategic exit.
Property and casualty, general liability, business interruption, hurricane and flood coverage in exposed markets, and umbrella coverage are all required. Insurance costs have risen materially in coastal and Gulf Coast markets post-2022. Lenders verify coverage limits and named insureds at close.
SBA 504 typically closes in 60 to 90 days from term sheet. SBA 7(a) typically closes in 45 to 75 days. Combined deals typically run 75 to 105 days. Environmental due diligence and infrastructure inspection can occasionally extend timelines.

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