Kidder Mathews received the exclusive disposition assignment for this “Class A” marina, located in San Diego, California. The owners originally purchased it with the idea of assembling a chain of similar properties up and down the coast line. After stabilizing tenancy and repositioning moorage tenants, the NOI allowed for a profitable disposition, which accommodated the owner’s desire to dissolve the partnership. The land under this asset is owned by the Port of San Diego and the existing twelve year remaining lease term required capital improvements over $1.5 million dollars to extend beyond thirty years.
This presented a challenge in the sale because the marina’s income could not support such an improvement without expanding the facility, which was not an option. The Port of San Diego has stringent guidelines in assumption of waterfront leases and required both buyer and seller to work cooperatively in this process. Kidder Mathews identified buyers throughout the U.S. and leveraged interest against local marina owners that had the ability to offset the capital improvements on their existing facilities. This allowed for a successful assumption and subsequent extension of lease term on the Gold Coast Marina. After coordinating a neutral and experienced attorney to oversee this process, the transaction successfully closed.