RV Resort Sale Provides Up-Leg for 1031 Exchange

MARINA, CA—A joint venture of Skya Ventures Inc. and Gelt Inc. recently sold Marina Dunes RV Resort located at 3330 Dunes Dr. in Monterey County. The 96-site property on 5.58-acres was sold for $28.5 million to an undisclosed publicly traded REIT.

“This was an off-market transaction as our intent was not to sell this asset early, however, we received a strong offer that will now allow us to seek an up-leg for our 1031 exchange and create new opportunities for our investors and our joint venture,” says Keith Wasserman, partner with Gelt.

The joint venture acquired the property for $18 million in 2018.

“We saw significant upside with the purchase of the park and a contiguous lot parcel for future expansion potential, which we were able to successfully entitle, build and complete, resulting in an additional 23 RV spaces,” said Gelena Skya-Wasserman, founder and CEO of Skya Ventures, who manages the development and entitlement arm on behalf of Gelt Inc.

In addition to adding more RV spaces, the joint venture provided additional upside by creating new user experiences. Those experiences include replacing the camp tent sites with glamping spaces where guests can stay in fully furnished tents with individual yards and fully equipped campsites.

Skya-Wasserman noted that the prior ownership owned the property for 10 years and had been unsuccessful at expanding the site. However, the Skya/Gelt joint venture was able to entitle and complete construction on the expansion site within two years of acquisition.

“Our team was able to employ our years of knowledge and experience in working with municipalities to move through the challenging permitting and entitlement process on a fast-tracked timeline,” Skya-Wasserman tells GlobeSt.com. “The ultimate goal was to create significant value for this RV resort as it was a diamond in the rough. With ample capital needed to execute the desired value-add play, we successfully created an amazing place for campers to enjoy the outdoors. Additionally, this was an ideal time to sell as RVing has experienced a huge upsurge as families and friends seek outdoor activities in this COVID-19 environment.”

The peer-to-peer RV rental company RVshare said recreational bookings increased 650% in advance of summer vacationing. The spread of COVID-19 has made air travel and public transportation more unpopular options. Studies have shown travelers feel more comfortable in personal vehicles where they can control the scenario.

Marina Dunes RV Resort features privately fenced patios with landscaping, off-street parking, upgraded utility pedestals, and telephone, cable, Wi-Fi and propane tanks available at each site. Common area amenities include a clubhouse with game room, billiards, flat screen TV, fire pit, horseshoes and volleyball. A small retail store/check-in office is located near the entrance to the property and offers an assortment of convenience store items and other merchandise.

The property is a short drive to Monterey, Carmel, Pacific Grove, Pebble Beach and Big Sur. The city of Marina is approximately 15 miles north of the Monterey Peninsula and is one hour from San Jose. The property borders the Marina Dunes Preserve to the north and west, and is a short walk to Marina State Park to the south.

“Marina Dunes RV Park offers campers an irreplaceable location with direct beach access,” says Skya-Wasserman. “RV parks like this one are attractive to investors as they rarely trade and there are very few new ones being approved especially in coastal areas such as this one.”

Jonathon McClellan, Kyle Baskin, Connor Outcalt and Steve Seligman of Institutional Property Advisors, a division of Marcus & Millichap, handled the transaction on behalf of the buyer and seller.