Marina Market Review 2011

2011 has been an interesting year to say the least for the marina business. We were optimistic at the beginning of the year that we'd see an uptick in transactions as the world regained some sense of normalcy. MarinaSales saw an increase in buyers and quality properties coming to market but buyers were cautious and not in a hurry to complete transactions. We continue to see a tale of two markets. The Northeast remains strong with few if any bank defaults and a shortage of quality properties for sale given the volume of buyers. The Southeastern U.S. is a completely different story with numerous assets available and a growing overhang of bank owned properties. Pricing in the Southeast remains challenging with too many sellers holding onto values based on Dockominium models or headier times. In the past few months we've noticed an increasing amount of bank owned/controlled properties and attribute it to the banks finally owning up to the fact that they have a problem. We don't see this trend abating anytime soon and in fact, we think more and more properties will be taken into receivership or foreclosed on as banks accept that they can only sweep problem loans under the carpet for so long. Marinasales September 2011