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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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.
Pricing is indicative and reflects active CLS CRE quote pipeline as of May 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.
- Site count and mix: full hookup, partial hookup, and primitive sites each have different revenue profiles. Diversified mix outperforms single-product properties.
- Land area and density: total acreage, sites per acre density, and undeveloped expansion potential. Lower density supports premium daily rates; higher density supports lower per-site cost basis.
- Seasonality: northern and mountain climate parks have peak season concentration; Sun Belt parks have year-round operating profiles. Lenders stress-test cash flow against seasonal patterns.
- Stabilization: lenders typically require 80 percent or higher peak-season occupancy and stable annual NOI for two to three consecutive years before considering the property fully stabilized.
- Operator experience: first-time park operators face proceeds reductions and tighter recourse. Multi-park operators benefit from operating leverage. KOA franchisees benefit from brand standardization.
- Property condition: utility infrastructure (water, sewer, electric, propane), road and pad conditions, bath house and laundry facilities, and amenity infrastructure all drive operating performance and lender appetite.
- Land value collateral: land typically represents 25 to 40 percent of total project cost, providing meaningful lender comfort. Lender underwriting separates land value from improvement value.
- Long-term site agreements: parks with significant long-term annual site agreements have more stable cash flow but lower rate flexibility. Lenders evaluate the mix carefully.
- Capital expenditure reserves: utility system replacement, road and pad maintenance, bath house and amenity replacement all require ongoing reserves typically at $300 to $1,500 per site per year.
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.
- Seasonality cash flow underwriting: pre-2020 underwriting frequently smoothed seasonal cash flow assumptions. Lenders post-2022 stress-test against the deepest off-season month and often require operating reserves to cover off-season debt service.
- Aging utility infrastructure: water, sewer, electric, and propane systems at older parks (pre-1990) often need significant replacement within the first five years post-close. Sponsors who do not budget capital expenditure reserves face DSCR pressure and operational disruption.
- Long-term site agreement turnover: long-term site annual agreements provide stable revenue but limit rate flexibility. Conversion of long-term sites to transient creates short-term revenue pressure.
- Bath house and amenity standards: outdated bath houses, laundries, and recreational amenities affect competitive positioning. Park reviews on Campendium, KOA app, and other platforms drive booking; aging amenities erode rates and occupancy.
- Permitting and zoning: RV park zoning is restrictive in many jurisdictions and conditional use permits can extend construction or expansion timelines by 12 to 24 months. Sponsors planning expansion underestimate entitlement timelines frequently.
- Insurance and weather: hurricane exposure in Gulf Coast and Southeast Atlantic markets, flood exposure in river-adjacent parks, and tornado exposure in tornado alley markets all drive insurance pricing and loss exposure. Coverage costs have risen materially post-2022.
- First-time operators: park operations involve hospitality management, retail management, and infrastructure maintenance simultaneously. First-time operators without hospitality industry experience face proceeds reductions and key person retention requirements.
- Consolidator multiples on exit: RV park consolidator demand has been strong but is not unlimited. Sponsors planning sale-leaseback or strategic exit at premium multiples should plan for cycle timing risk.
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.
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