BOCA RATON, Fla. — Marina Management Services, Inc., a marina consulting and management firm, is retooling its workout consulting and management programs to respond to the increasing number of marina projects that are returning to lenders, the group reported in a recent statement.
"MMS is adding value through marina specific consulting services and third-party management contracts to help lenders understand the best option and identify a course of action for these distressed properties," according to the statement.
As a result of an increasing number of marina projects in various stages of bankruptcy and foreclosure, MMS said it has received an increase in inquiries from banks, lending institutions, hedge funds and developers requesting assistance with troubled projects.
“The dockominium and rackominium concept pushed purchase prices for waterfront property and marinas to unprecedented levels. This leaves lenders in a compromising situation as they attempt to wrestle with 5 or 10 million dollar losses,” said MMS President Dennis Kissman. “In the late 80s, the dockominium and rackominium concept was not as prevalent and properties were purchased at only 1 to 3 million dollars. The situation is much more severe now.”
MMS said lenders are now left attempting to figure out the best approach for selling or operating troubled projects — or, in some cases, considering developing parts or the entire project to increase the overall value of the asset before the sale.
"The critical question for lenders to understand is, 'What is the true value of the project?' Often times there are only permits, renderings, raw land to deal with, and no ongoing operations in place," MMS stated. "In the case of an ongoing operation, the lender, owner or developer needs to step in to stabilize the operation and stop the bleeding cash flow."
- For more of the latest news, click here.