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As the dust begins to settle from the unprecedented times of 2020-2022, RV Park owners find themselves at a crossroads. The surge in RV travel, spurred by COVID-19 stay-at-home mandates, coupled with historically low interest rates, created a seller's market that saw property values soar. However, as we peer into the horizon, it's becoming clear that the conditions of the past few years were an anomaly, unlikely to repeat in the near future. Understanding the Shift Recent insights, particularly those highlighted by David Frosh in his April 04, 2024, article, underscore a crucial fact: The landscape of commercial real estate (CRE), including RV parks, is undergoing a significant transformation. The Federal Funds rate, which many assumed directly influenced mortgage rates, has a more complex relationship with the rates than previously thought. As the Federal Reserve moves towards deleveraging its balance sheet, liquidity is being siphoned from the market, affecting the availability and terms of new loans. Implications for RV Park Owners For RV Park owners considering selling, this shift signals a need to recalibrate expectations. The high valuation peaks reached between 2020 and 2022 were buoyed by unique circumstances unlikely to recur. With commercial mortgage defaults expected to rise in the coming years, banks will become increasingly cautious, affecting their willingness to issue aggressive new loans for RV parks. Embracing Patience or Seller Financing Facing this new reality, owners are encouraged to consider holding onto their assets for at least another 3-5 years, allowing time for the market to stabilize. Alternatively, seller financing emerges as a viable and attractive option. Seller financing can offer several benefits, including a faster closing process, potential tax advantages through spreading out capital gains, and possibly fetching a higher sale price due to the flexibility offered to buyers in a tighter lending market. Leveraging Expertise Our firm has been at the forefront of valuing and selling RV parks, with over 100 parks valued in the past 12 months alone. In 2023, we successfully sold 16 parks and are currently marketing another 14. Our deep understanding of the current market conditions and trends positions us uniquely to provide RV Park owners with confident and accurate property valuations. Conclusion As the CRE landscape evolves, RV Park owners must navigate these changes with informed strategies and realistic expectations. While the boom of 2020-2022 may not repeat, opportunities for sustainable success and profitability remain, particularly for those open to alternatives like seller financing. For owners seeking guidance or a current market valuation of their property, our team stands ready to leverage our expertise and market insight to support your goals. Contact us today to explore how we can help you make informed decisions in this changing landscape.

The commercial real estate sector is on the cusp of a significant transformation, underscored by the staggering $929 billion in commercial mortgages set to mature in 2024. For RV park owners, this signals a pivotal moment, marked by a confluence of past investment trends, shifting travel behaviors, and the daunting reality of refinancing in a more conservative lending environment. A Look Back: The Investment Boom Between 2020 and 2022, the RV park industry experienced an unprecedented boom. Low-interest rates, coupled with a surge in RV travel as people sought alternatives to work-from-home setups, spurred a wave of investments and development projects. This period saw RV parks achieving record revenues, bolstered by cheap debt, leading to inflated asset valuations. The Turning Tide However, as interest rates normalize and RV travel returns to pre-pandemic levels, the financial landscape for RV park owners has shifted. Today's valuations, though lower than the peak of 2021, align more closely with the 20-year average, illustrating the anomaly of the previous years. This adjustment period is challenging for those who acquired or developed parks during the boom, especially as loan maturities loom. The Refinancing Hurdle The current climate presents a stark contrast to the favorable conditions of recent years. Banks, now grappling with a 30% drop in the book values of funded assets, are tightening their belts on new commercial real estate loans. For RV park owners facing maturing debts, the options for refinancing are grim, compounded by the decreased values of their properties. Implications and Strategies Owners who invested during the high-water mark are now confronting a stark reality: the potential for loans to be called by banks, leading to increased bankruptcies and short sales. The market anticipates a softening in prices, driven by a wait-and-see approach from buyers eyeing distressed sales and an uptick in competition that erodes occupancy and rental rates. Looking Forward For RV park owners, the path forward involves difficult decisions. Selling may emerge as a viable strategy, allowing owners to capitalize on current valuations and transition to less management-intensive investments or benefit from seller-financed deals. A 1031 exchange into single tenant net lease properties offers another avenue for repositioning equity in more stable assets. Conclusion As the commercial real estate landscape undergoes its most significant test in decades, RV park owners must navigate with caution, strategic foresight, and an openness to adapt. The coming years will demand resilience, but also present opportunities for those ready to realign their investment strategies to the new normal. Take Action Our Austin, TX-based team of Mobile Home and RV Park Experts tracks the market religiously. We are in active communication with new and seasoned park owners and operators, developers, lenders and third parties - All with the singular goal to provide the best information possible to investors navigating these new waters. If we can ever be of assistance to you and your park or investment goals, please don't hesitate to reach out directly.

The case study of how we executed a successful 1031 exchange for the owner of four pawn shops into a long-term lease, single tenant investment property - increasing our client’s net income in the process! CHALLENGE In November of 2023, the owner of four properties in Louisiana contacted our office with the intent to sell his properties and perform a 1031 exchange into a net lease property to eliminate his landlord responsibilities and secure a long-term lease with a corporate credit tenant. We knew that this was a critical investment decision for the owner because these properties made up a substantial portion of his net worth and his tax exposure if he was unable to complete a 1031 exchange was over $900,000. This owner previously operated a chain of pawn shops before selling his operations to a larger company, retaining the real estate. He had been presented with an offer to purchase his properties that he could not refuse, and as a result had a very short amount of time to execute a 1031 exchange into a net lease investment property. This owner had never done an exchange and was admittedly fully reliant on our team to execute the full exchange. ACTION We didn’t waste time. We started by understanding his investment goals and timeline, and building a roadmap that showed him exactly how he was going to sell his properties, coordinate and exchange and purchase a replacement property(ies). We even provided a short list of options that were presently available. From there, we engaged with the owner and began a process of identifying potential replacement properties. We sourced replacement options from Crexi, Loopnet and Costar as well as our database of REITs, Funds, Brokers, Private Owners and Developers. In total, we prepared a list of over 45 properties that fit the client’s geographical, business-use, price and return metrics. From here, we worked hand-in-hand with our client to qualify and disqualify properties from this list. We also communicated with 20+ brokers/principals in order to confirm availability, negotiate price and terms, and ultimately narrow our search down to 5 properties we intended to aggressively pursue. Our first property (an automotive retailer in Texas) made it into escrow before determining there were some lease issues that our client and his attorney could not move past. With over half of our identification window over, we had to move quickly on a second property. RESULTS We quickly pivoted to our backup property which was a brand new Dollar General Market in Florida in a high-growth area. With the help of the brokers representing that owner, we negotiated and agreed to a contract, performed a site visit and diligence and closed on that property in less than two weeks (December 29th to be exact). Now our client was the proud owner of a brand-new corporately-backed absolute NNN lease receiving rent from one of the largest and most historically stable retailers in the country. Not only that, he eliminated all of his landlord responsibilities (for roof, structure, foundation, taxes, insurance, etc.), has a lease that is three times as long as his longest lease on the pawn shops, and actually increased his net cash flow by over 20%. Aside from the site visit to the property, our client never had to leave the comfort of his own home from contract to close. TESTIMONIAL “I had known Landan for years through his work in the net lease space and with 1031 exchanges. When I made the decision to sell my shops, I knew that I needed to seriously look into a 1031 exchange after speaking with my CPA and learning how much money in taxes I would need to pay once I sold these properties. Landan met with my wife and me to discuss this as an option, and within a very short amount of time it was clear to us that Landan needed to run this exchange for us. From start to finish, Landan and his team were professional, responsive and extremely knowledgeable about the 1031 exchange and the properties we were considering purchasing. Landan has my highest recommendation for anyone in a similar situation and considering a similar outcome to what Landan provided us.” -Jim B.

This case study outlines the process of assisting the owner of Liverpool RV Park, who transitioned from investing in self-storage facilities to RV parks, in overcoming the challenges of mismanagement and low occupancy, leading to a successful all-cash sale and a return to familiar investment terrain. Challenge: We first met with the owner of Liverpool RV Park in August 2023, revealing a unique scenario. While traditionally an investor in self-storage facilities, he ventured into the realm of RV Parks with the acquisition and development of Liverpool RV Park. He was hoping to save some money by utilizing his management team for his storage facilities. In the end, he said the park was mismanaged. Faced with the complexities of RV Park Ownership and an ongoing struggle to keep the park consistently occupied, the decision was made to minimize losses by opting for the sale of the property. Action: Our team diligently explored potential enhancements to Liverpool RV Park with the goal of optimizing occupancy rates and seeing the potential value of a properly managed park. This involved a meticulous analysis of historical rents and occupancy rates to gauge the park's revenue potential. To effectively market the property, we crafted a detailed Offering Memorandum, showcasing its strengths. Our proactive approach extended to reaching out to fellow park owners in the Houston area and leveraging our extensive network of industry contacts. These efforts aimed not only to explore collaborative opportunities but also to generate interest and visibility for Liverpool RV Park in the broader real estate market. Result: The culmination of our strategic initiatives resulted in a successful all-cash closing on October 21st. This transaction not only allowed the owner to cut losses swiftly but also provided the financial flexibility to return to his familiar terrain of investing in self-storage properties. Testimonial: "When I engaged Cole and Landan, I had already had this property listed for over a year on my own efforts. I had not received any offers that were acceptable. Cole and Landan walked me through how they market a park and receive multiple offers on each one. I realized there was a lot I was not doing. Not long after I hired them, we had an acceptable offer and closed very quickly after that. I'm grateful to have met Cole and Landan!"

This case study delves into the experience of aiding the owner of Lost River RV Park in Baytown, TX, through the complexities of managing and ultimately selling the park under distinctive circumstances, leading to a successful, strategic, seller-financed sale to an enthusiastic buyer. Challenge In April 2023, our team had the pleasure of meeting the owner of Lost River RV Park situated in Baytown, TX. He not only owned but also personally managed the park, leading a small team. Unfortunately, the park faced a significant challenge with the untimely passing of the park manager. This unexpected loss placed the entire spectrum of park responsibilities squarely on the owner's shoulders. Despite having navigated the intricacies of running an RV Park in the past, the owner, now older, found himself grappling with the physical demands that ownership entailed. Faced with these challenges, he wanted to transition out of the management-intensive role, seeking to retire and gracefully pass the park over to new leadership. Action Our initial steps in the process was taking a look at Lost River RV Park financials. We delved into the Profit & Loss statement, gauged market conditions, and conducted comprehensive rental comparisons with other parks in the vicinity. Our objective was to establish an accurate valuation of the park, considering its unique attributes and potential. We then presented a well-defined marketing strategy, emphasizing the importance of reaching a broad audience to stimulate a competitive bidding environment. This involved a proactive approach, where we engaged with hundreds of RV Park owners in the Houston area, ensuring timely responses to inquiries from those exploring our online listings. Our comprehensive approach aimed to maximize exposure and optimize the park's perceived value in the market. We sorted through many offers and scheduled park visits and meetings. Results Navigating the challenges posed by elevated interest rates and the complexities associated with securing lending, we steered negotiations toward a solution that proved beneficial for all parties involved. Recognizing the constraints of conventional financing, we successfully structured a deal using seller financing. The culmination of our efforts came to fruition with a successful closing on December 29th. Prior to finalizing the transaction, we facilitated a comprehensive site visit for the prospective buyer and their agent, ensuring transparency and satisfaction in the property acquisition process. Our client has since been able to retire and was relieved of the property-related debt through the terms agreed upon in the financing arrangement. Testimonial “I had been approached to sell my RV Park numerous times in the past and ultimately told everyone the same thing - not interested. However, due to personal reasons, I decided that I needed to sell the property early in 2023. While I had plenty of options to choose from - both buyers and brokers - I ultimately chose to work with Landan Dory and Cole Little because they came and met me at the park and offered up an entire marketing strategy and timeline that I felt would highlight the strongest aspects of the park and provide me with the most credible offers. Their efforts were successful, as the buyer they sourced was from California and highly motivated to close the sale in 2023 for his own tax reasons. With this being a seller-financed sale, there were certainly challenges along the way, but the brokers stayed with me every step of the way and completed the sale on the last business day of the year. I’d love to recommend Landan and Cole to any other RV park owners looking to sell their RV Park.” -Eric L.

As we welcome the new year, the RV travel industry stands at a fascinating crossroads, poised for growth and adaptation. Drawing insights from recent trends and industry forecasts, let's explore what 2024 may hold for RV travel enthusiasts, park owners, and investors. 1. Continued Strength in RV Park Bookings Despite economic uncertainties, RV park bookings have remained resilient. This trend is expected to continue in 2024, buoyed by the diversification of RV travelers and a growing preference for outdoor recreation. Parks might see an uptick in extended stays, as remote work remains popular, blending the lines between travel and daily living. 2. RV Shipments: A Positive Outlook After navigating supply chain disruptions and a fluctuating market, RV shipments are predicted to see a steady rise in 2024, with estimates reaching 350,000 units. This increase reflects a sustained interest in RV lifestyles and travel, promising a broader customer base for RV parks and related businesses. 3. Gas Prices: A Variable Factor Fuel costs are a critical aspect of RV travel, and as we've seen in 2022, fluctuating gas prices can significantly impact travel plans. While current trends hint at stabilizing prices, RV travelers in 2024 will likely remain mindful of fuel efficiency and cost-effective travel routes. 4. Insurance Costs and Financial Planning RV park owners face the challenge of rising insurance costs, driven by various factors such as natural disasters and economic shifts. In 2024, smart financial planning and a thorough understanding of insurance options will be crucial for sustainable park management and investment. 5. The Shift in RV Park Investing Investment trends in the RV park sector are evolving, with a noticeable shift from smaller, individual investors to larger, institutional entities. This shift may lead to significant changes in the park landscape, offering more amenities and standardized services. 6. The RV Park Business Model: Adapting to Change The traditional RV park business model is adapting to accommodate new traveler demands and market conditions. Parks may increasingly focus on enhancing guest experiences with better amenities, technological upgrades, and eco-friendly practices. 7. Embracing Technology and Sustainability RV parks are increasingly incorporating technology for operational efficiency and guest satisfaction. Online booking systems, smart energy management, and digital connectivity are becoming standard. Alongside, sustainability efforts are gaining momentum, with parks adopting eco-friendly practices to appeal to environmentally conscious travelers. 8. The Community Aspect One constant in the RV park industry is the sense of community. In 2024, this aspect will continue to be a significant draw, with parks fostering environments where travelers can connect, share experiences, and create lasting memories. Conclusion As we embark on 2024, the RV travel industry is set to navigate a landscape marked by growth, technological integration, and a deeper appreciation for the outdoors. For travelers, park owners, and investors alike, the year ahead promises new opportunities and adventures in the ever-evolving world of RV travel.

As the holiday season approaches, Texas campgrounds are gearing up for what's anticipated to be a bustling end to the year. Fueled by the growing popularity of RV travel and the desire for unique holiday experiences, these campgrounds offer a blend of festive cheer and the beauty of the Texas landscape. The Rising Trend in RV Travel Recent years have seen a remarkable increase in RV travel across the United States. Driven by a desire for safe, flexible, and self-sufficient travel options, families and individuals alike are turning to RVs as their preferred mode of holiday accommodation. Texas, with its diverse landscapes and mild winter weather, has emerged as a leading destination for these holidaymakers. Texas Campgrounds: A Hub of Holiday Festivities Many Texas RV parks are transforming into vibrant holiday hubs. From the Hill Country to the Gulf Coast, campgrounds are twinkling with Christmas lights and echoing with carols. Traditional holiday activities, like tree decorating contests, holiday-themed events, and communal dinners, are now staples at these sites, bringing together a community of travelers in celebration. What's Drawing Campers to Texas? The allure of Texas campgrounds during the holidays lies in their ability to offer something for everyone. Families enjoy the festive atmosphere and child-friendly activities, while snowbirds appreciate the mild winter climate. Additionally, the state's natural beauty, from its scenic hill country to its sprawling plains, provides a picturesque backdrop for holiday celebrations. Modern Amenities Meet Traditional Charm In keeping with the latest trends, many Texas campgrounds have upgraded their facilities to offer modern conveniences alongside traditional charms. High-speed internet, full-hookup sites, and contemporary amenities are now common, ensuring that visitors can enjoy a comfortable and connected holiday experience. Community Spirit in the Great Outdoors The heart of the holiday experience at these campgrounds lies in the sense of community. With shared spaces for gatherings and events, campgrounds foster a festive spirit that brings together people from diverse backgrounds. It's not uncommon to see impromptu music sessions, group hikes, and communal campfires, making for memorable holiday experiences. Responsible Travel in Nature Amid the festivities, there's a growing emphasis on responsible and sustainable travel. Campgrounds are adopting eco-friendly practices and encouraging guests to respect the natural environment. This responsible approach ensures that the beauty of Texas landscapes remains unspoiled for future holiday seasons. A New Holiday Tradition As we approach the end of the year, Texas campgrounds stand ready to offer a unique blend of holiday cheer and outdoor adventure. With their festive decorations, community spirit, and natural beauty, these destinations are carving out a new tradition in holiday travel – one that celebrates the joys of the season in the great outdoors.

The net lease real estate investment market, as of late 2023, exhibits several distinctive trends and characteristics influenced by broader economic factors and sector-specific dynamics. This report presents a concise overview of the current state of this market, emphasizing key trends, challenges, and opportunities. Market Overview Net lease real estate, where tenants pay a portion or all of the property expenses (such as maintenance, taxes, and insurance) in addition to rent, remains a popular investment due to its perceived stability and predictability. This market is largely segmented into three categories: single tenant net leases (STNL), double net leases (NN), and triple net leases (NNN). Economic Context Interest Rate Environment: The Federal Reserve's interest rate policies have a direct impact on the net lease market. Rising rates can increase borrowing costs, impacting investor yields. However, net lease assets often have rent escalators that can partially offset these increases. Inflation and Rent Indexation: With inflation concerns prevalent, net lease properties with rent indexed to inflation are increasingly attractive, offering a hedge against inflationary pressures. Investment Trends Sector Preferences: Retail and industrial properties are leading the net lease investment space. While retail offers long-term leases and stability, the industrial sector is driven by e-commerce growth, making it a highly sought-after segment. Geographical Shifts: Investors are showing a preference for properties in tax-friendly and high-growth states. There is also a trend towards suburban and secondary markets, driven by changing demographic trends and remote work practices. Portfolio Diversification: Investors are diversifying their portfolios across different types of net leases and geographic locations to mitigate risks associated with any single asset class or region. Challenges and Risks Tenant Credit Risk: The financial health of tenants remains a crucial factor. In the current economic environment, tenant creditworthiness is under scrutiny, especially in sectors affected by economic downturns. Market Saturation: Certain segments, particularly in prime locations, are experiencing saturation, leading to increased competition and potentially lower yields. Regulatory Changes: Changes in tax laws or real estate regulations can impact net lease investments, influencing investor appetite and market dynamics. Opportunities Technology and E-commerce: The continued growth in e-commerce is bolstering demand for industrial net lease properties. Additionally, technological advancements are creating new investment opportunities, such as data centers. Sustainable Investing: There is a growing interest in properties with green certifications or those that offer sustainability features, aligning with broader ESG (Environmental, Social, and Governance) investment trends. Emerging Markets: Emerging markets or non-traditional property types, such as healthcare-related real estate, are gaining traction, offering new avenues for diversification and growth. Conclusion The net lease real estate investment market is navigating a complex environment characterized by macroeconomic uncertainties and evolving investor preferences. While challenges like interest rate fluctuations and tenant credit risks persist, opportunities in e-commerce-driven industrial properties, sustainable investments, and emerging markets present new avenues for growth. Investors are advised to closely monitor economic indicators, tenant health, and regulatory changes while maintaining a diversified and strategically aligned portfolio to optimize their investment outcomes in this dynamic market.

In the ever-evolving landscape of real estate investment, RV parks stand out as unique and lucrative opportunities. As the US economy experiences shifts, there's a notable uptick in investment sales within this sector. In a recent discussion with Maury Vanden Eykel, SVP of Corporate Capital Markets at CBRE, we explored the growing trend of RV park investment sales, the driving factors behind it, and essential advice for navigating this dynamic market. Rising Trends in RV Park Investment Sales: Given the state of the US economy and the evolving financing landscape, RV park investment sales are gaining traction. Investors are drawn to the potential for robust returns in a market where outdoor and recreational spaces are increasingly valued. The appeal lies not only in the financial gains but also in the diversification and resilience that RV park investments offer. Due Diligence Imperatives: Vanden Eykel emphasizes that success in RV park investment sales is contingent upon meticulous due diligence. Whether you're a buyer seeking to expand your portfolio or a seller looking to maximize returns, the following key aspects should be integral to your due diligence strategy: Environmental Site Assessment (ESA): Given the diverse nature of RV parks, conducting a comprehensive ESA is crucial. Identifying any environmental risks or contamination issues early on is vital for risk mitigation and ensuring the long-term value of the investment. Property Condition Assessment (PCA): RV park infrastructure, from utility systems to recreational amenities, requires a thorough evaluation to uncover potential maintenance issues and assess the property's overall condition. ALTA Survey: Accurate land surveys are essential for RV parks, ensuring a clear understanding of property boundaries, easements, and any encroachments. Zoning Report: A clear understanding of zoning regulations and land-use restrictions is crucial to assess the property's potential and any limitations that could impact its value. Seismic Risk Assessment (SRA): Depending on the location, RV parks may be vulnerable to seismic risks. An SRA provides insights into potential vulnerabilities and guides risk mitigation strategies. Appraisal: Given the unique characteristics of RV parks, a detailed appraisal is essential to establish a fair market value and facilitate a mutually beneficial transaction. Customizing Due Diligence for RV Park Investments: Investors should adopt a proactive and tailored approach to due diligence based on their investment goals. Whether you're looking to enhance the value of the property or seeking opportunities for strategic improvements, customizing the scope of assessments is key. Vanden Eykel recommends a staged, rapid-paced approach to due diligence, addressing potential issues upfront to provide both buyers and sellers with confidence. For RV park investments, this might involve tailored environmental assessments, infrastructure evaluations, and a thorough analysis of amenities to align the property with the investor's objectives. Efficiency in Portfolio Transactions: Many RV park investment sales involve portfolio transactions, necessitating a streamlined and efficient due diligence process. To navigate this challenge successfully, consider the following: Single Source: Opt for a consultant capable of providing all required assessments to ensure consistency and streamline the due diligence process. Geographic Reach: For RV parks spread across different locations, partnering with a national consultant with local expertise can reduce travel costs and streamline site assessments. Centralized Staffing and Coordination: Efficient deployment of staff and centralized project management ensure a smooth process and clear communication between all parties involved. Diverse In-House Expertise: Access to in-house experts is crucial for addressing any unexpected issues during due diligence, ensuring accuracy and reducing the time and expense associated with external specialists. Known, Reliable Brand: The reputation of the due diligence provider is paramount. Investors should partner with trusted consultants like Partner Engineering and Science to ensure the integrity of reports relied upon by all parties involved. RV park investment sales present exciting opportunities for investors seeking diversification and robust returns. To ensure success in this dynamic market, a comprehensive and customized due diligence approach is essential. By adopting a proactive strategy and partnering with experienced consultants, investors can navigate the RV park investment landscape with confidence, maximizing returns and achieving their long-term investment objectives.

Car wash net lease investment properties have been one of the darlings of the net lease sector over the last few years as the business model has transitioned to being subscription-based, operators have become more sophisticated, and tax incentives like bonus depreciation have made these desirable investments for retail or 1031 investors. The excitement and development in the car wash space have provided many investors with what they expected to be a long-term passive investment but has ended up being a nightmare for some owners and a ticking time bomb for others. The major threats that are affecting net lease investors who own car washes are: The number of car washes, specifically the express model, in certain markets across the United States, has increased 2-5x in the last five years. The average revenue per car wash location has been on the decline as consumers have more options to choose from. Operating expenses for taxes, insurance, labor, maintenance, management, etc, have consistently increased. This average decrease in revenue combined with an increase in expenses has put substantial operational strain on operators resulting in increasing lease defaults, bankruptcies, a re-structure or complete pause of growth, or subleasing to other operators. As the average consumer's economic status decreases evidenced by an increase in credit card debt, home and auto mortgage rates increasing, student loan payments resuming in September, and inflation, there is strong reason to believe that over the next 12-18 months, many consumers who get their car washed, specifically subscription members, will be making a financial decision to decrease the frequency or eliminate their car wash subscription if faced with choosing between that and putting food in the refrigerator. Growth and Saturation In a testament to the ever-evolving nature of the business, certain markets across the United States especially major markets of Texas and Florida with dense cities and inexpensive land have witnessed a remarkable surge in the number of operating car washes over the past five years. The next five years show no signs of slowing down, as approximately 3.1 million square feet of car wash space are under construction across the U.S., according to CoStar Group. The car wash industry, long considered a stable and mature sector, is now experiencing a renaissance of growth, with some areas reporting a 2-5x increase in the sheer volume of operating/new development car wash facilities. This unprecedented expansion has not only captured the attention of entrepreneurs and investors but has also left industry experts, private equity firms, and established groups indecisive about how much market share is left. First Big Player to Admit Distress Driven Brands, a major player in the car wash industry, has been rapidly expanding its network with the construction or acquisition of 400+ express locations in the last two years. However, this aggressive growth strategy has not come without challenges, as roughly one-third of their car washes now face competition from new entrants within a three-mile radius. In response to this competitive landscape, Driven Brands recently adjusted its 2023 revenue guidance, lowering it by $50 million. This move reflects the dynamic and competitive nature of the car wash market, highlighting the need for businesses to adapt to changing conditions and continue to innovate to maintain their market position. In their Q3 earnings report, Driven Brands announced they are closing 29 locations that haven’t even reached their third anniversary. They attribute this to sites that are 13+ years old, suboptimal real estate, significant competition in the area, and ALL performing in the red. Even smaller regional operators like a brand called Swiftwater in San Antonio have gone completely belly-up recently, leaving 18 locations vacant or re-leased to local operators. Having now spoken with many of those owners who thought they purchased a long-term lease property - none of them show a clear path to recoup their initial investment. Neighborhood Spot to Corporate Operation When speaking with owner-operators who have stayed on after many of their local competitors exited the market during the private equity buyout boom, they consistently note an uptick in their volume. They attribute this growth to the fact that these major corporate acquisitions have transitioned what was once a well-managed small business into a more corporately-run service with less emphasis on customer experience and consistently have large turnovers, as shown by the number of openings on Indeed and other job sites. (Indeed.com) Bonus Depreciation Phase-Out Investors need to consult their CPAs to gain guidance on how the phase-out will affect their tax benefits as we enter 2024 and the acceleration moves from 80% to 60%. This will more than likely increase cap rates as the value of car washes will include fewer tax advantages as we approach 2027. Zombie Customers Zombie customers are individuals on an unlimited plan who seldom utilize their subscriptions. Some of these consumers might not even be aware of their membership, or they simply don't make the most of it as originally expected when they signed up. It's worth noting that these customers comprise 25-30% of most memberships, and if they were to disappear suddenly, it would be a cause for concern. Rocket finance is experiencing rapid growth among consumers with disorganized finances. It's coined as "The money app that works for you," and its main features include tracking subscriptions, sending alerts when payments are nearing due dates, and monitoring your service usage. This, in combination with the expanding options for car washing locations, has presented challenges for owners in forecasting their memberships and achieving their goals. A Decision Net Lease Owners Need to Make Net lease owners must decide whether or not they are confident enough in their location and that their operator can sustain a profitable business while being subject to rental increases and rising operational costs. Owners need to look forward five to 20 years in the future - however long they plan to own their assets - and trust that their property will be just as successful with an increase in competition and expenses - all while the consumer may see a significant decline in personal purchasing power. The most important question is, do you want to be in this investment for the next five to ten years or would your equity be safer in a different net lease investment? Partners Net Lease Team Our data: Our team tracks 2,000+ car washes in various US markets, from net lease investments to mom-and-pop operations. The data shows that there are still hundreds more washes slated for development in these same markets. While some of these locations will continue to thrive due to their real estate, business operations, and established customer base, ones with weaker real estate, increasing debt and operating expenses and overly optimistic projections will continue to struggle in the coming years. Our team has performed over $250m in investment sales across 21 states in the US, and by our analysis and in our daily, car washes are poised to experience the heaviest windfalls in the coming years. Sources: Driven Brands Q3 2023 Earnings Call - Driven Brands Investor Day Presentation “Respect the 3-Mile Rule: Starting a New Car Wash.” Pit Crew, 27 Nov. 2019, pitcrew.com/3-mile-rule-choosing-a-car-wash-location/. Pitt, Sophia. “This App Will Save Me $1,235 by Helping Me Cancel Unused Subscriptions.” CNBC, CNBC, 6 Jan. 2023, www.cnbc.com/2023/01/06/how-to-find-and-cancel-unused-subscriptions-with-rocket-money.html. Lichterman, Sean. “Tips to Help Ease Tax Burdens for Carwash Owners.” Professional Carwashing & Detailing, 18 Aug. 2023, www.carwash.com/wash-away-tax-burden/#:~:text=Phase%2Dout%20schedule&text=Starting%20in%202023%2C%20the%20percentage,rates%20while%20they%20are%20available.

RV parks serve as vital hubs for travelers seeking both adventure and relaxation on the open road. These carefully curated spaces offer a myriad of benefits, providing a home away from home for RV enthusiasts. Understanding these advantages and the pivotal role owners play in shaping these experiences is essential for creating a haven that travelers will return to time and again. 1. Certainty and Convenience: RV parks provide travelers with a sense of certainty and convenience that can be invaluable on their journeys. Offering reservation systems ensures that guests have a guaranteed spot, eliminating the stress of finding suitable accommodation on the go. Owners can further enhance this experience by streamlining the check-in process, providing clear signage, and offering online booking options, making the traveler's experience seamless and hassle-free. 2. Community and Connections: One of the unique aspects of RV parks is the sense of community they foster. Travelers from diverse backgrounds come together, sharing stories, experiences, and travel tips. Owners can facilitate these connections by organizing social events, potlucks, or outdoor movie nights, encouraging campers to interact and form lasting friendships. Creating a welcoming atmosphere where guests feel like part of a community enhances their overall travel experience. 3. Access to Essential Amenities: RV parks offer a range of amenities that make life on the road more comfortable. From clean restrooms and hot showers to laundry facilities and Wi-Fi connectivity, these conveniences significantly contribute to a traveler's quality of life. Owners should prioritize maintaining and upgrading these amenities, ensuring they are well-maintained and easily accessible. A well-stocked camp store and nearby dining options can further enhance the overall convenience for travelers. 4. Safety and Security: Feeling safe and secure is paramount for travelers, especially those exploring unfamiliar regions. Owners can invest in security measures such as well-lit pathways, surveillance cameras, and on-site staff to provide a sense of safety for their guests. Implementing secure access systems and clear emergency protocols further enhances security, allowing travelers to relax and enjoy their stay without worries. 5. Embracing Nature: Many travelers choose RV parks for their proximity to natural wonders and outdoor activities. Owners can capitalize on this by integrating their parks seamlessly into the surrounding environment. Designing landscaped green spaces, offering guided nature walks, and providing information about local trails and attractions can help travelers immerse themselves in the natural beauty of the area. Additionally, creating designated pet-friendly areas allows travelers to share these experiences with their four-legged companions. 6. Environmental Stewardship: Owners have a responsibility to preserve the natural beauty of their surroundings. Implementing eco-friendly practices, such as recycling programs, water conservation initiatives, and energy-efficient lighting, not only minimizes the park's environmental impact but also resonates positively with eco-conscious travelers. Educating guests about these efforts fosters a sense of environmental stewardship among the community. In conclusion, the benefits of RV parks for travelers are vast, encompassing convenience, community, safety, and access to nature. Owners hold the key to enhancing these experiences by creating a welcoming atmosphere, offering essential amenities, promoting connections among guests, ensuring safety, embracing nature, and championing environmental stewardship. By prioritizing these aspects, RV park owners can create memorable journeys for travelers, leaving a lasting impression and encouraging them to return, ensuring the continued success and vibrancy of their park.

Selling your RV Park is a significant decision, and the ultimate goal for any seller is to secure the highest possible price from a buyer who can confidently complete the transaction. To achieve this, sellers must step into the shoes of potential buyers and lenders. By providing comprehensive information and positioning your property as a valuable investment, you can attract the right buyers and ensure a smooth sales process. In this guide, we'll explore key factors that can make your RV Park more appealing to buyers, from financial documentation to property infrastructure, to help you achieve a successful sale. Profit and Loss Statement A Profit and Loss (P&L) statement is the cornerstone of any successful RV Park sale. It provides a comprehensive financial snapshot of your property's performance. A well-prepared P&L statement should include revenue, operating expenses, and net income for the past few years. Buyers and lenders rely on this document to assess the park's profitability and potential return on investment. To ensure accuracy and transparency, consider enlisting the help of a professional accountant or financial advisor when preparing your P&L statement. Breakdown of Rental Information Buyers want to understand the revenue potential of your RV Park. Providing a detailed breakdown of rental information is essential. Include the number of sites, current rental rates, and any additional income streams, such as laundry facilities or amenities. Explain how utilities are billed and any seasonal variations in rental income. By presenting this data clearly, you help buyers evaluate the park's income-generating capabilities. Historical Rent Rolls Historical rent rolls provide valuable insights into your RV Park's rental history. These documents list each tenant, their site or space, rental rates, and lease terms. Buyers can use rent rolls to assess tenant stability and revenue consistency. Include rent rolls for at least the past three years to demonstrate your park's track record and attract confident buyers. Occupancy Reports Occupancy reports reveal the park's utilization over time. Buyers want to know if the property consistently attracts guests. Include monthly or quarterly occupancy data for the past few years, highlighting peak seasons and any trends. High occupancy rates can make your RV Park more appealing to buyers looking for a thriving investment opportunity. Property Survey A property survey is an essential document that defines the boundaries and features of your RV Park. It provides buyers with a clear understanding of the land's layout, ensuring they can assess its potential for expansion or improvement. If you don't have a recent survey, consider investing in one to facilitate a smoother sales process. Previous Inspection or Environmental Reports Transparency is key in real estate transactions. Provide any previous inspection or environmental reports for your RV Park. These reports can reassure buyers about the property's condition and compliance with environmental regulations. Addressing potential concerns upfront can prevent last-minute hurdles during the sale. Permitting for Everything on the Property Buyers need assurance that your RV Park complies with local zoning and permitting requirements. Provide documentation related to permits for infrastructure, structures, and any on-site amenities. Ensuring all necessary permits are in order helps build trust and avoids potential roadblocks in the sales process. Recently Completed or Needed Capital Expenditures Highlight any recent capital expenditures or improvements made to the RV Park. This information demonstrates your commitment to maintaining and enhancing the property's value. Buyers are often willing to pay a premium for a well-maintained and updated RV Park. Infrastructure Details about your RV Park's infrastructure are vital to buyers. Include information about water sources (well water or city water), sewage systems (city sewer, septic, or wastewater treatment), electrical systems, and any other critical utilities. Clarity on these aspects helps buyers assess operational efficiency and potential maintenance costs. Get a Complimentary Property Valuation and Evaluation To kickstart your selling process, consider seeking a complimentary property valuation and evaluation from a commercial real estate expert. This service can provide you with a competitive advantage by helping you understand your property's current market value and suggesting strategies to maximize its sale potential. Selling your RV Park is a significant endeavor that requires careful preparation and transparency. By providing potential buyers with the necessary documentation and information, you increase the chances of attracting serious, well-informed buyers who are willing to pay a premium for your property. Remember, positioning your RV Park as an attractive and low-risk investment is key to achieving a successful sale in the competitive commercial real estate market.