Archive for » December 24th, 2014«

Considerations for the boat slip sales re-emergence

The long dormant boat slip and storage unit sales market is re-emerging after years of dismal sales. Marinas such as Sunset Harbour Yacht Club in Miami Beach, which had long slip sell lists a few years ago, now have waiting lists to buy slips. TheSun-Sentinel recently reported on the re-emergence of the market for boat slip and boat storage sales in South Florida. The Sun-Sentinelnoted an uptick in sales at Soverel Harbour Marina in Palm Beach Gardens and The Bluffs Marina in Jupiter, as well as the grand opening of the Dania Beach Boat Club, south of Fort Lauderdale. (Hemlock, Doreen. “‘Dockominium’ Sales voaPick up Speed.” Sun Sentinel, Nov. 28, 2014, Money sec.)

Marina owners and boat storage facility developers will likely be considering new slip and storage unit offerings. Such owners and developers should consider the options for sales programs, and issues that impact the availability and desirability of the different options. Options for slip and boat storage sales programs include:

  • Deeded structures, including dockominiums or rackominiums, or subdivided land, or
  • Non-deeded structures, including equity or non-equity membership programs or long-term subleases.

In the case of boat slips, the deeded interest structures are not available for the slips when the submerged land is leased from the government, rather than owned by the marina owner. Additional considerations in determining a structure include:

  • The developer’s business plan to either operate the facility as a for-profit business or solely to sell the slips or units,
  • The extent to which the market would accept membership vs. deeded structures,
  • The positioning of the facility as a full service yacht club vs. solely as a boat slip or storage unit project,
  • The willingness of banks to finance sales under the different options,
  • The importance of maintaining slip and storage unit sales pricing levels on a long-term basis,
  • The desire to control operations on a long-term basis,
  • The cost of implementing the program, and
  • Income and sales tax considerations.

As a result of the major decline in the slip and boat storage sales market preceding the Great Recession, consumers are most concerned about the long term viability of a marina facility and the ability of the slips or units to maintain value. Success for the sales program depends on the degree to which the developer is able to address such concerns.


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Smaller boats to get weather boost in Hobart race

SYDNEY (AP) — Smaller boats appear favored for this year’s Sydney to Hobart race handicap honors due to forecast weather which makes a line honors race record seem unlikely.

Cruising Yacht Club officials in Sydney, where the race begins Friday, said Wednesday that the 117-boat fleet will be sailing into strong southerlies up to 30 knots (55kph/35mph) on the first night.

Skippers of the five 100-foot super maxis, including new American entry Comanche and defending champion Wild Oats XI, must judge how hard they can push their yachts and crews in the tough conditions.

Winds forecast for later in the race are expected to give the smaller, trailing boats a push up the fleet.

Wild Oats won line honors for the seventh time last year, finishing the 628-nautical-mile race in 2 days, 6 hours, 7 minutes. The yacht also holds the race record of 1 day, 18 hours, 23 minutes and 12 seconds set in 2012.

The race begins in Sydney Harbour, heads south along the coast of New South Wales state and across Bass Strait to the island state of Tasmania and its capital city Hobart.

“It’s certainly not a forecast for a record,” Wild Oats skipper Mark Richards said Wednesday. “The record will get smashed one year, but I don’t think this will be the year.”

Comanche skipper Ken Read says his recently-launched super maxi remains untested in the anticipated rough conditions.

“The weather report is what you expect when you come here to the Hobart race,” Read said. “It is no surprise and we will all work our hardest to keep our Christmas dinners down, one would imagine, on that first night. But this is what we expect.

“We will try and keep it in one piece. This is a completely untested boat at this stage. I am as curious as anybody as to how she will react.”

In 1998, six sailors died and five yachts sank in a storm that hit the fleet early in the race.


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Boat dealer closes doors

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The watercraft have rolled off the lot of Supreme Boats for the last time.

The Blumenort dealership selling a range of watercraft, boat motors and recreational vehicles for much of the past two decades ceased operations effective Friday.

The enterprise opened in 1991 as nothing more than a used boat dealer, dabbling in only a few new boat sales. By 1997, they started selling two boat lines, an expansion that signified the need for a 13,000 sq-ft. showroom unveiled in 2003 off of Highway 12, just north of Blumenort.

Supreme Boats had eight employees this summer. As operations slowed following news of the closure, some found work elsewhere. Four employees remained at closing time.


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