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SPECIAL-PURPOSE

Financing Solution for Luxury Florida RV Park

$30,000,000

Lake Wales, FL

Park Grounds

RRA Capital provided a $30 million non-recourse, interest-only loan to a luxury RV park in Lake Wales, FL. The financing enabled the sponsor to refinance existing debt and augment cash flow, effectively leveraging the property's potential for increased profitability.

The park, a premier 5-star outdoor hospitality property, spans an expansive 435-acre landscape. It features a total of 411 units, comprising 397 RV spaces and 14 rentable cottages. With a diverse range of accommodation options, the park caters to a wide array of guests seeking exceptional outdoor hospitality experiences. Additionally, the property's land area encompasses unimproved portions that significantly enhance its overall value and present exciting opportunities for future development.

As part of the financing arrangement, RRA implemented an interest reserve mechanism, strategically designed to supplement cash flow during the lease-up period. Leveraging their extensive expertise and industry network, RRA ensured a comprehensive appraisal of the property, providing a solid foundation for the financing process.

The sponsor capitalized on the park's prime location and exceptional amenities to attract a high-end clientele. They also enhanced management expertise, positioning the park for attractive financial performance and higher customer satisfaction, with net operating income (NOI) for peak months (Jan-March) increasing by 27% from 2022 to 2023.

The vast land area and unimproved portions of the park hold tremendous potential for further development. By prioritizing customer satisfaction, upgrading facilities, and delivering a premium guest experience, the sponsor has significantly enhanced the park's reputation. Ā 

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