Refinance for a 5-Star Luxury Outdoor Hospitality Resort on 435 Acres

THE PROPERTY

A 5-Star Outdoor Hospitality Destination Built from the Ground Up in 2020: 411 Sites Across Five Accommodation Tiers on 435 Acres in Central Florida

Resort at Canopy Oaks is a luxury outdoor hospitality property in Polk County, Florida, developed in 2020 as a purpose-built RV resort and operated as a 5-star destination from the time of its opening. The property encompasses 435 acres and offers 411 total units: 397 RV sites across five distinct accommodation tiers and 14 rentable cottage units for guests seeking a more traditional lodging experience. RV sites range from standard back-in configurations to waterfront sites with brick paver patios and fire pits, and premium and platinum corner sites with built-in grills and the most expansive site footprints in the park. All RV sites measure 45 by 90 feet with 20-by-70-foot concrete pads, 20-30-50 amp electric, full hook-ups including water and sewer, and high-speed fiber Wi-Fi available throughout the grounds. The property also offers discounts for extended stays beginning at three months, supporting a base of longer-term and seasonal guests alongside short-term visitors.

The amenity package anchors the resort's positioning at the top tier of the outdoor hospitality market. A 12,000-square-foot clubhouse serves as the central hub, offering laundry facilities, showers, a fitness center, a ballroom, conference rooms, and a resort-style pool accessible from the clubhouse deck. Beyond the clubhouse, the grounds include an outdoor tiki bar, rentable cabanas, pickleball courts, fishing ponds, bocce ball, shuffleboard, and golf cart rentals. On-site storage for both RVs and boats is available for guests staying longer term. A convenience store, spa, and salon round out the on-site retail and services. The property is additionally zoned for a total of 1,000 RV sites, representing the potential for an additional 589 units of development beyond the current buildout.

THE RRA SOLUTION

$30,000,000 First-Position Refinance Loan Retiring Existing Construction Financing and Providing an Interest Reserve and Operating Reserves to Support Continued Lease-Up

RRA provided a $30,000,000 first-position, non-recourse bridge loan closing March 31, 2022, structured to retire the property's existing construction financing and provide the operational reserves necessary to carry the property through continued lease-up and stabilization. The full $30,000,000 was funded at closing.

Proceeds retired approximately $26,000,000 in outstanding construction and development obligations, fully unencumbering the property. The remaining proceeds funded a $1,300,000 interest reserve to supplement operating cash flow during the lease-up period, a $150,000 tax and insurance impound, and a $100,000 operating reserve, with remaining proceeds providing additional liquidity to the sponsor.

The property paid off in full on June 28, 2024, approximately 27 months after origination, without requiring either extension option.

THE OPERATOR

An Experienced Third-Party Outdoor Hospitality Management Firm with Over 6,000 Managed Sites and Multiple National Awards, Engaged at the Time of RRA's Financing

At the time of RRA's loan origination, the sponsor engaged a new professional property management company to take over operations. The incoming manager brought institutional-quality systems, national marketing infrastructure, and revenue management capabilities to the property. The company had, at that point, served more than 75 clients across assets totaling over $535 million in value and managed more than 6,000 RV sites across its portfolio. Their managed properties had been recognized on four separate occasions among USA Today's top 20 RV resorts, reflecting a consistent track record of above-market guest experience delivery.

Under the incoming management team's stewardship, Resort at Canopy Oaks earned LUX RV Resort of the Year recognition in both 2021 and 2022, and was listed among the Good Sam Top 120 RV Resorts in both of those years. The management company's leadership included principals with direct experience as full-time RV travelers, having lived and stayed in their managed properties, which informed their approach to the guest experience from an operator-as-guest perspective. The transition to professional management at the time of RRA's financing represented a meaningful upgrade in operational infrastructure, directly supporting the property's continued lease-up trajectory and the revenue growth underpinning the loan's stabilization thesis.

THE LOCATION

Central Florida's Outdoor Recreation Corridor: Within Two Hours of Orlando and Tampa, Surrounded by Two of Florida's Premier Fishing and Wildlife Lakes

Resort at Canopy Oaks is located approximately 17 miles southeast of Lake Wales in Polk County, in a corridor widely recognized among anglers, birdwatchers, and outdoor recreation enthusiasts as one of Central Florida's most productive natural areas. The property sits within five miles of Lake Kissimmee, a nearly 35,000-acre lake internationally known for birdwatching, with wildlife including bald eagles, alligators, and bobcats, and within four miles of Lake Weohyakapka, also known as Lake Walk-in-Water, a 7,528-acre lake where anglers report sightings of 25 to 30 bass per day. The broader area includes multiple state parks and wildlife refuges offering hunting, fishing, sightseeing, and nature tourism across an extensive network of public lands.

The property's regional accessibility from Florida's major metro areas is a meaningful demand driver. Resort at Canopy Oaks is within a two-hour drive of both Orlando and Tampa and within a three-hour drive of Miami. Florida Route 60, which runs the width of the state from Tampa in the west to Vero Beach in the east, passes nearby, supporting the property's draw from both drive-in and fly-in markets across the state. The Lakeland Linder International Airport serves the broader region, with the Lake Wales Municipal Airport providing a closer regional option.

THE MARKET

Strong Post-Pandemic Tailwinds for Outdoor Hospitality in a Growing MSA: RevPAR Climbing Over 60% Annually at Origination in the Lakeland-Winter Haven Submarket

Resort at Canopy Oaks operates in the Lakeland-Winter Haven, Florida MSA, which had a population of approximately 684,000 as of 2019 and grew 13.6 percent between 2010 and 2019. The MSA's hospitality submarket comprised approximately 8,200 hotel rooms at origination, with more than half concentrated in the economy and midscale segments and fewer than 800 rooms in the luxury or upper-upscale tier. This supply composition creates a favorable competitive backdrop for a 5-star RV resort: travelers seeking a premium experience in this market have limited options in the traditional hotel sector, and Resort at Canopy Oaks targets a demand profile that conventional lodging products are not designed to serve.

The outdoor hospitality category was experiencing significant momentum at origination. RV ownership and camping participation had surged through 2020 and 2021 as leisure travelers pursued outdoor alternatives to conventional hospitality. Within the Lakeland-Winter Haven submarket, rooms sold increased 14.3 percent in January 2022 compared to January 2021, with 12-month RevPAR climbing at an annualized rate of 63.5 percent as of that same month. At the time of closing, the property was already over 60 percent booked for January and February 2023 at rates above those in effect at origination, reflecting strong forward demand and early evidence that the lease-up thesis was executing ahead of projections.

THE SPONSOR

A Luxury Outdoor Hospitality Developer with Four Projects Underway in Florida, Focused on Premium Site Standards, Resort-Quality Amenities, and Purpose-Built Development

The sponsor is a luxury RV park developer focused exclusively on the Florida market at the time of origination, with four projects in various stages of development. The developer's product is defined by a specific set of physical standards: oversized concrete-pad sites, large clubhouses, resort-style swimming pools, tiki bar infrastructure, and amenity packages calibrated to attract guests who prioritize premium outdoor experiences. The developer's business philosophy is built around identifying gaps between what RV travelers want and what existing parks provide, then filling those gaps through purpose-built development rather than repositioning of existing assets.

Resort at Canopy Oaks, which opened in 2020, was the developer's first completed and operating project at the time of RRA's origination. A second location was scheduled to open in mid-2022 and was already accepting reservations, with two additional properties expected to open through 2023. The developer's capacity for continued growth was supported by the financial depth to fund future development on an all-cash basis. The individual guarantor behind the sponsoring entity brings an extensive background in residential development and has been recognized among the top 100 single-family homebuilders in the country, providing the organizational and capitalization depth to execute a multi-property luxury outdoor hospitality portfolio.

435 acres. 411 sites across five accommodation tiers. A 12,000-square-foot clubhouse, a resort-style pool, and fishing access to Lake Kissimmee five miles away. Resort at Canopy Oaks paid off at natural maturity, 27 months after closing.

‍