The next wave of luxury real estate: marina developments with yacht parking

Marinas are becoming the next big draw for luxury real estate, as the global wealthy search for homes to park their ever-larger yachts, according to developers.

With the number of yachts surging since Covid-19, real estate developers and investors are rushing to fill the shortage of boat slips and marina communities. There are now over 6,000 superyachts over 30 meters (98 feet) around the world, and another 200 delivered every year, according to SuperYacht Times.

The growth in the size and number of yachts has created a shortage of yacht slips. And investors are rushing to fill demand. Last year, Blackstone paid $5.6 billion for Safe Harbor Marinas, which then paid $1.5 billion in August for 65 marinas and storage sites purchased from MarineMax. European private equity firms are also on a marina buying spree to fill the shortage in the Mediterranean.

Real estate developers now see marinas as a powerful magnet for ultra-wealthy buyers, especially in South Florida. Billionaire Ken Griffin is building a megayacht marina in Miami with eight megayacht slips, including one for his 308-foot yacht.

The largest and most ambitious is Related Group’s $2 billion new marina development in Fort Lauderdale. Slated to break ground next year and open in 2030, the project will include a St. Regis Hotel, condos, a beach club and slips for yachts up to 350 feet long.

“Here in South Florida is there’s been a scarcity of yachting destinations and marinas and slips,” said Related Group’s Nick Pérez. “So when you’re able to combine irreplaceable real estate and a marina, you just have a winning formula.”

The 40-acre development will include a St. Regis hotel with 122 rooms, a 78-residence condo tower, 106 resort residences, as well as a deepwater marina that can hold 250 boats. It will also include a sports and wellness club with a padel and tennis court, yoga lawn, fitness center and pools. And it will have its own beach club.

Fort Lauderdale has long been the yachting capital of the U.S., with a vast infrastructure of yacht repair and renovation companies, along with crew, brokers, charter experts and shipbuilder offices. An estimated 2,000 superyachts pass through Fort Lauderdale each year, according to tourism officials. Many yacht owners are looking for real estate not only for themselves but also their crew.

Pérez said the new St. Regis development will not only appeal to the yachting community but also to a growing number of international buyers who are looking for a lower-cost alternative to Palm Beach and Miami. Several buyers from Mexico and Brazil have already purchased in the building.

He said up to 30% of the buyers at the project could be international.

“Fort Lauderdale is no longer T-shirt shops and flip-flops, it’s now a luxury destination, with national retailers like Rolex, Patek, Cartier,” Pérez said. “When you look at Miami and Palm Beach and the growth, now it’s Fort Lauderdale’s time to shine.”

While boat slips are the main attraction, many buyers in Fort Lauderdale are pouring in from Southern California and the Northeast to take advantage of Florida’s lower taxes.

“With the taxation situation in California, we’re seeing a lot of interest from Newport and the Laguna area and San Diego,” Pérez said.