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Old 07-16-2021, 09:49 AM   #1
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EBM Sold

As of today, Elliott Bay Marina is now owned by Southern Marinas.
Ownership change effective 7/16.
What do we know about them?
In my view, EBM has been just an excellent place to keep a boat in a very well run, well kept, and secure environment.
Not cheap, but excellent.

Should I expect this to change in any material way?
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Old 07-16-2021, 11:27 AM   #2
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Since the new owner is private equity funded, tenants will likely see increased moorage costs, lower service, and fewer employees in order to provide a short term boost to profits to upstream to the new owners. Maybe put it into a reit like they did their previous marinas under management.
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Old 07-16-2021, 11:48 AM   #3
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When I read the news and saw who the new owners were, I had the same worrying thoughts drb1025 had. Hope things don't go down that road for what is an excellent, well-run, and otherwise loved marina.
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Old 07-16-2021, 12:54 PM   #4
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Well, Southern Marinas is only a temporary stop for them. In February, Southern sold all marinas to a publicly traded REIT. Since, they have purchased two marinas, Ocean Isle Marina in NC and Elliott Bay in Seattle. Now, the ultimate REIT may be ok, but regardless the marina has now been turned into a trading piece, a possession like a vase on your shelf. Simple goal to resell and then goal of the buyer to provide dividends. Likely will be heavily leveraged so if problems develop can be dumped and lender is the only loser.

I can only compare it to all the malls we are in. Most are owned by REIT's, although Brookfield just converted out of being one. Now I really like dealing with Simon and Brookfield. However, they hold no connection or special attachment to any property they have and history says they dump the ones they don't feel are performing or are aging by sale or foreclosure. They like and maintain well those properties producing for them.

Just for a slipholder at Elliott, you no longer know the owner at all. You might get someone if you call Florida but you won't likely feel any connection and they don't intend to hold on to you. The uncertainty would bother me. I'd have some concern over rising prices, but greater concern over maintenance and staffing. Right now, no idea where you'll even land.
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Old 07-16-2021, 01:15 PM   #5
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Well, Southern Marinas is only a temporary stop for them. In February, Southern sold all marinas to a publicly traded REIT. Since, they have purchased two marinas, Ocean Isle Marina in NC and Elliott Bay in Seattle. Now, the ultimate REIT may be ok, but regardless the marina has now been turned into a trading piece, a possession like a vase on your shelf. Simple goal to resell and then goal of the buyer to provide dividends. Likely will be heavily leveraged so if problems develop can be dumped and lender is the only loser.

I can only compare it to all the malls we are in. Most are owned by REIT's, although Brookfield just converted out of being one. Now I really like dealing with Simon and Brookfield. However, they hold no connection or special attachment to any property they have and history says they dump the ones they don't feel are performing or are aging by sale or foreclosure. They like and maintain well those properties producing for them.

Just for a slipholder at Elliott, you no longer know the owner at all. You might get someone if you call Florida but you won't likely feel any connection and they don't intend to hold on to you. The uncertainty would bother me. I'd have some concern over rising prices, but greater concern over maintenance and staffing. Right now, no idea where you'll even land.
Yes, I could clearly see that Southern was not a long term holder of these properties, but Florida is full of marinas that have passed (quickly) through their hands.
Some of that end well, or all down hill in the end? Some of the final reit owners good operators as well as good investors, or did all of these properties become less appealing to tenants?
I hold a currently empty slip at EBM having sold its occupant vessel. I was going to hang onto the slip since I have believed that EBM has no peers on the Sound. Seems like a good chance that may not remain true.....
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Old 07-16-2021, 03:04 PM   #6
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Yes, I could clearly see that Southern was not a long term holder of these properties, but Florida is full of marinas that have passed (quickly) through their hands.
Some of that end well, or all down hill in the end? Some of the final reit owners good operators as well as good investors, or did all of these properties become less appealing to tenants?
I hold a currently empty slip at EBM having sold its occupant vessel. I was going to hang onto the slip since I have believed that EBM has no peers on the Sound. Seems like a good chance that may not remain true.....
Basically all you can do is wait and hope. The Florida marinas moved to REIT's earlier this year haven't been long enough to know and none of them were of the quality and status of Elliott Bay.
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Old 07-16-2021, 06:44 PM   #7
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With the lack of available moorage in most citys i wonder what keeps a landlord from just doubling the rent.
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Old 07-16-2021, 07:03 PM   #8
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With the lack of available moorage in most citys i wonder what keeps a landlord from just doubling the rent.
I think the lack of moorage is a bit exaggerated. It's lack of prime location moorage but people can move a bit away and find slips and that's what keeps prices under control. Obviously, they're not going to double rent, but they would increase more if they felt secure in doing so. It's no different than housing, where you just go a bit further than you wanted to.
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Old 07-16-2021, 08:39 PM   #9
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With the puget sound a bit away usually means you need a boat to get there or a ferry. We do have some southern marinas in the bay but you may find your equipment missing.
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Old 07-16-2021, 10:44 PM   #10
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With the puget sound a bit away usually means you need a boat to get there or a ferry. We do have some southern marinas in the bay but you may find your equipment missing.
Yes, but at exorbitant price increases, people would make do with ferry or less security. You're willing to pay some extra to marinas without those problems. How much extra, one never knows. 10% or 50% or double?
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