Marinas represent one of the most compelling - and misunderstood - segments of commercial real estate. With a limited supply of waterfront property, strong recurring revenue, and growing demand from recreational boaters, marina investments can deliver attractive long-term returns. But securing marina financing requires working with specialized lenders who understand this unique property type.
This guide breaks down everything you need to know about financing a marina purchase, refinance, or expansion - from loan types and qualification requirements to valuation methods and environmental due diligence.
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How Big Is the Marina Industry in the United States?
The U.S. marina industry generates approximately $7.7 billion in annual revenue across an estimated 10,000 to 12,000 marina facilities nationwide (IBISWorld, 2025). Globally, the marina market reached $19.47 billion in 2025 and is projected to grow to $24.38 billion by 2029, reflecting a compound annual growth rate (CAGR) of 5.8% (The Business Research Company, 2026).
Several factors are driving this growth. Recreational boating participation continues to climb, waterfront property is inherently supply-constrained, and many aging marinas are ripe for renovation and repositioning. For investors and operators looking to enter or expand in this space, understanding your marina financing options is the critical first step.
The number of marina businesses in the U.S. has actually declined at a rate of about 0.5% annually between 2020 and 2025, which means fewer facilities are serving growing demand - a dynamic that supports pricing power for well-positioned operators (IBISWorld, 2025).
What Types of Loans Are Available for Marina Financing?
Marina financing can be structured through several different loan programs, each with distinct advantages depending on your situation. Here is a comparison of the most common options.
SBA 7(a) Loans are popular among owner-operators purchasing a marina for the first time. With the SBA's updated business acquisition policy, borrowers can secure up to 90% financing by combining a 5% cash down payment with a 5% seller note (SBA7a.loans). This makes SBA 7(a) one of the most accessible paths into marina ownership. Learn more about how SBA loan programs can work for specialty properties.
SBA 504 Loans are designed specifically for real estate purchases and major equipment. They require a standard 10% down payment and offer competitive fixed rates in the 6.5% to 6.9% range. To qualify, your business must have a tangible net worth under $15 million and average net income below $5 million over the prior two years (SBA504.loans).
CMBS (Conduit) Loans work well for stabilized marinas with strong occupancy and consistent cash flow. These loans offer some of the lowest fixed rates in the market - typically 5.9% to 7.5% - with terms of 5, 7, or 10 years. CMBS lenders generally require a minimum debt service coverage ratio (DSCR) of 1.25x and maximum loan-to-value (LTV) of 75-80% (CMBS.loans).
Conventional Bank Loans remain an option for borrowers with strong credit profiles and existing banking relationships. Regional and community banks familiar with the marina sector may offer competitive terms, though they typically cap LTV at 70-75% and want to see a DSCR of 1.25x to 1.35x.
For borrowers who need faster closings or have properties that do not yet qualify for conventional financing, bridge loans and hard money loans can provide interim capital while you stabilize operations.
Use our DSCR calculator to estimate whether your marina's net operating income supports the debt service requirements for your target loan program.
What Revenue Streams Do Lenders Evaluate in a Marina?
Lenders pay close attention to how a marina generates its income. Diversified and recurring revenue streams signal lower risk and can help you qualify for better loan terms.
Wet slip rentals are typically the largest revenue source, accounting for roughly 35% of total marina income. Lenders favor this category because slip contracts are often annual or multi-year, creating predictable cash flow with built-in CPI-based escalators (BullPen Real Estate, 2024).
Dry storage contributes around 20% of revenue and is increasingly important as many marinas expand their landside storage capacity. Stack storage buildings can accommodate more vessels per square foot than traditional wet slips, improving per-acre revenue.
Fuel sales represent roughly 18% of revenue. While fuel margins are relatively thin, fuel docks generate steady traffic that feeds other profit centers. Lenders will review your fuel storage tank compliance records as part of environmental due diligence.
Service and repair operations can contribute 12% or more to revenue and often carry the highest profit margins. Marinas with certified marine mechanics and established service departments demonstrate operational depth that appeals to lenders.
Ancillary income from retail shops, pro shops, food and beverage, and event rentals rounds out the picture. While individually smaller, these revenue streams demonstrate a marina's ability to capture additional spending from its customer base.
The key takeaway for financing is that lenders assign different risk weights to each revenue stream. Boat storage income - both slips and landside - along with established commercial tenant lease income, will generally receive the most favorable treatment. These sources tend to have lower expense ratios, greater stability, and require less labor than service or retail operations (Marina Dock Age).
How Are Marinas Valued for Financing Purposes?
Marina valuation is more complex than standard commercial real estate because of the unique combination of real property, water access rights, and operating business components. Appraisers and lenders typically use multiple valuation approaches.
The income capitalization approach is the primary valuation method for operating marinas. This approach divides the marina's net operating income (NOI) by an appropriate capitalization (cap) rate to arrive at a property value. For example, a marina generating $500,000 in annual NOI with a 10% cap rate would be valued at $5 million (Marina Appraisal, John Simpson MAI).
Marina cap rates typically range from 8% to 14%, with averages falling in the 9.5% to 10.5% range. Class A properties in prime coastal locations can trade at cap rates as low as 7% to 8%, while smaller or rural marinas may command rates of 12% or higher. Location, occupancy, facility condition, and the mix of revenue streams all influence where a specific marina falls within this range.
Several factors push cap rates lower (and values higher). Fee simple ownership of both land and submerged property rights is more attractive than operating on leased land or water. Geographic location matters significantly - South Florida marinas typically trade at lower cap rates than properties in less established boating markets (Marina Appraisal).
The per-slip valuation method provides a useful screening tool. By dividing the total purchase price by the number of wet slips, you can quickly compare properties across markets. However, this method does not account for variations in slip size, landside operations, or facility condition, so it should only supplement the income approach.
Use our commercial mortgage calculator to model different scenarios based on your marina's financials.
What Are the Key Qualification Requirements for Marina Loans?
Qualifying for marina financing requires meeting both property-level and borrower-level criteria. Lenders evaluate the marina as an operating business, not just as a piece of real estate.
Debt Service Coverage Ratio (DSCR): Most marina lenders require a minimum DSCR of 1.25x, meaning the property's net operating income must be at least 125% of the annual debt service. Some SBA lenders may accept ratios as low as 1.15x for strong borrowers.
Loan-to-Value (LTV): Maximum LTV ranges from 70% to 90% depending on the loan program. SBA loans offer the highest leverage at up to 90%, while conventional bank loans typically cap at 70-75%.
Borrower Experience: Marina management experience is a significant factor. Lenders want to see that the borrower or their management team has a track record of operating marina facilities or similar waterfront hospitality businesses. First-time buyers should consider retaining experienced marina management as part of their acquisition strategy.
Credit Profile: Expect minimum credit scores of 680 for SBA programs and 700+ for conventional and CMBS financing. Lenders also review personal financial statements, liquid reserves, and overall net worth.
Property Requirements: The marina should demonstrate stable or growing occupancy rates, well-maintained facilities, and compliant environmental records. Deferred maintenance is a red flag that may require escrow holdbacks or capital expenditure reserves.
If you are a first-time commercial real estate investor, pay special attention to the experience requirements and consider partnering with a seasoned marina operator to strengthen your loan application.
What Environmental Due Diligence Is Required for Marina Financing?
Environmental compliance is one of the most critical - and potentially costly - aspects of marina financing. Because marinas handle fuel, engine fluids, solvents, and wastewater in close proximity to sensitive waterways, lenders take environmental risk very seriously.
Phase I Environmental Site Assessment (ESA) is required by virtually all marina lenders. This assessment identifies recognized environmental conditions (RECs) through a combination of site inspection, historical research, and regulatory database review. A Phase I ESA for a marina typically costs $4,000 to $8,000.
Phase II ESA may be triggered if the Phase I identifies potential contamination. This involves soil and groundwater sampling and can cost $10,000 to $25,000 or more depending on the scope. Common concerns at marina sites include fuel storage tank leaks, heavy metals from anti-fouling paint, and legacy contamination from historical uses (EPA, Vessels, Marinas and Ports).
Clean Marina Certification from the EPA's Clean Marina Program can provide meaningful advantages in the lending process. Marinas that meet 100% of the program's compliance items and at least 60% of voluntary pollution prevention measures earn this designation, which can lead to extended submerged land leases, lower insurance rates, and improved borrowing capacity (EPA, Clean Marina Program).
Fuel Storage Tank Compliance is another area of focus. Underground and aboveground storage tanks must meet federal and state regulations. Lenders will want to see current tank testing records, spill prevention plans, and evidence of proper maintenance and monitoring.
Budget $8,000 to $25,000 for complete environmental review when planning your marina acquisition. While this represents a significant upfront cost, it protects both you and your lender from potential liabilities that could far exceed the assessment fees.
What Does the Marina Loan Application Process Look Like?
The marina loan process is more involved than a typical commercial real estate transaction due to the specialized nature of the property. Here is what to expect from application through closing.
Step 1 - Pre-Qualification (Weeks 1-2): Start by assembling your financial package and marina documentation. A commercial mortgage broker experienced in marina financing can help you identify the right lenders and structure your application for the best possible terms. Contact our team to discuss your marina financing needs and get pre-qualified.
Step 2 - Term Sheet/LOI (Weeks 3-4): Once a lender expresses interest, you will receive a letter of intent or term sheet outlining the proposed loan terms. Understanding what to look for in a commercial loan term sheet is essential before committing to a lender.
Step 3 - Due Diligence (Weeks 5-8): This is the most intensive phase for marina transactions. It includes the property appraisal by a marina-specialized appraiser, environmental assessments, title search, waterfront boundary survey, and review of all permits and licenses.
Step 4 - Underwriting (Weeks 9-11): The lender conducts a thorough analysis of the marina's operations, financial history, market position, and borrower qualifications. Expect follow-up questions and document requests during this phase.
Step 5 - Closing (Week 12): Final document execution, loan funding, and title transfer. Be prepared for closing costs that may include lender fees, environmental insurance, title insurance, survey costs, and legal fees.
What Documents Do You Need to Apply for Marina Financing?
Marina loan applications require more documentation than standard commercial property transactions. Having these documents organized and ready can significantly speed up the process.
Beyond these standard items, lenders may request dock permits, waterway access agreements, dredging records, and detailed revenue breakdowns by category.
For marinas with fuel operations, expect additional scrutiny around tank compliance records, fuel volumes, and environmental insurance. Lenders want assurance that fuel operations are properly managed.
How Does Marina Lending Differ by Lender Type?
Not all lenders approach marina financing the same way. Understanding which lender types are most active in this space can help you target your application effectively.
Regional and community banks represent the largest share of marina lending at approximately 30% of the market. These lenders often have local market knowledge and existing relationships with marina operators in their regions. They tend to offer the most flexible terms but may have lower loan limits.
SBA lenders account for about 25% of marina financing and are especially popular for acquisition transactions. The SBA's guarantee reduces the lender's risk, which translates to higher leverage and lower down payments for borrowers. However, SBA loans come with additional paperwork and processing time.
CMBS/conduit lenders handle roughly 20% of the market and focus on larger, stabilized marinas. They offer some of the most competitive fixed rates but have stricter property requirements and limited flexibility for borrower negotiations.
Private and hard money lenders fill an important gap for properties that need repositioning, have environmental issues, or require faster closings. Rates are higher - typically 10% to 14% - but these lenders can close in weeks rather than months. Explore hard money loan options for time-sensitive marina acquisitions.
Seller financing rounds out the market at about 5% of transactions. Many long-time marina owners are willing to carry a note as part of the sale, which can bridge financing gaps and create favorable terms for both parties.
What Unique Risks Do Lenders Consider for Marina Properties?
Marina financing comes with risk factors that do not apply to conventional commercial real estate. Understanding these concerns will help you prepare a stronger loan application.
Waterfront Exposure and Weather Risk: Hurricanes, storm surge, and flooding pose significant threats to marina properties. Lenders in coastal markets evaluate storm preparedness, insurance coverage, and historical damage claims. Properties with floating docks and reinforced seawalls receive more favorable treatment.
Submerged Land Leases: Many marinas operate on state-owned submerged land beneath navigable waters. The terms and renewal provisions of these leases directly affect property value. Fee simple ownership is ideal, but long-term leases with favorable renewal terms can also support strong valuations.
Seasonal Revenue Patterns: Northern marinas may generate 60-80% of annual revenue during the May through October boating season. Year-round income from dry storage, service operations, and commercial tenants helps offset seasonal fluctuations.
Regulatory Complexity: Marina operations face oversight from the U.S. Coast Guard, Army Corps of Engineers, state environmental agencies, and local zoning authorities. Maintaining compliance across all jurisdictions is essential for financing eligibility.
What Should You Know Before Applying for Marina Financing?
Before you begin the application process, take these steps to position your marina deal for success.
Get your financials in order. Clean, well-organized financial statements for at least three years are essential. If you are acquiring a marina, work with the seller to obtain detailed operational records that clearly separate revenue streams and operating expenses.
Understand your DSCR. Run the numbers using realistic assumptions. Use our DSCR calculator to model different interest rate and loan amount scenarios. Most lenders want to see a DSCR of 1.25x or higher, so make sure your projections support this threshold.
Budget for environmental costs. Environmental due diligence is not optional for marina financing. Plan for $8,000 to $25,000 in assessment costs and factor potential remediation expenses into your acquisition budget.
Work with a specialized broker. Marina financing is a niche within commercial lending. An experienced broker can identify the right lenders, negotiate favorable terms, and guide you through waterfront property transactions.
Ready to explore your marina financing options? Contact Clearhouse Lending today for a free consultation. Our team has experience structuring loans for specialty commercial properties, including marinas, across all major loan programs.
What Are the Most Common Questions About Marina Financing?
What is the minimum down payment for a marina loan? The minimum down payment depends on the loan program. SBA 7(a) loans offer the lowest entry point at 10% down (which can be structured as 5% cash plus a 5% seller note). SBA 504 loans require 10% down. Conventional and CMBS loans typically require 20-30% down.
Can I get financing for a marina with seasonal income? Yes, but lenders will underwrite based on annual income rather than peak-season numbers. Properties with diversified revenue streams and year-round income from storage, service, and commercial tenants are easier to finance. Be prepared to show three years of financial history that demonstrates consistent seasonal patterns.
What credit score do I need for marina financing? Minimum credit scores typically range from 680 for SBA programs to 700+ for conventional and CMBS loans. However, credit score alone does not determine approval. Lenders also evaluate your net worth, liquidity, marina management experience, and the property's financial performance.
How long does it take to close a marina loan? Most marina loans close within 60 to 90 days from application, though complex transactions can take longer. Environmental due diligence and specialized appraisals are the most common sources of delay. Working with a lender experienced in marina financing can help streamline the timeline.
Are marina properties considered special-purpose real estate? Yes, marinas are classified as special-purpose commercial properties because they cannot easily be converted to alternative uses. Fewer lenders participate in this market, but those that do often have deep expertise and competitive programs.
Do I need marina management experience to qualify for a loan? While not always a strict requirement, marina management experience significantly strengthens your application. If you lack direct experience, consider hiring an experienced management company or partnering with a seasoned operator.
What insurance is required for marina financing? Lenders typically require property insurance, general liability, pollution liability, and marina operators legal liability (MOLL) coverage. In coastal areas, flood and windstorm coverage may also be required. Budget 3-5% of revenue for comprehensive insurance.
Get started with your marina financing today. Clearhouse Lending connects you with lenders who specialize in marina and waterfront property loans across every major loan program.