The Mandate
A regional storage developer adding marine-specific capacity engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a SBA 504 financing request for a project located in Ottawa County, Michigan. Total project capitalization fell within the $10M-$25M band. The capital provider, a SBA Certified Development Company, required documentation consistent with current program review standards. The analytical question put to the team: Did Lake Michigan recreational boat registrations and seasonal storage capture support 250 incremental indoor-heated marine stalls.
Engagement Scope
- Primary market area defined as a 25-mile drive-time
- Comparable supply set of 11 properties
- Demand model framework: registered-vessel capture and seasonal storage demand model
- Financial projection horizon: 10 years
- Site inspection completed; operator interviews where applicable
- Primary data collection through field reconnaissance and third-party market data
Methodology Applied
Primary Market Area
The PMA was defined as a 25-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of rv & boat storage assets in Michigan. The boundary captured the population, employment, and competitive supply base relevant to the subject's operating thesis.
Supply and Demand Reconciliation
The comparable supply set comprised 11 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a registered-vessel capture and seasonal storage demand model approach over a 10 years horizon. The reconciliation tested whether incremental supply, including the subject, could be absorbed within the projection window without compromising stabilized occupancy assumptions.
Capture Rate Calibration
The subject's capture rate was calibrated against the absorption capacity of the PMA. The analysis concluded that PMA absorption capacity exceeded subject build-out by a factor of 2 across the projection window, with a stabilized capture rate of 4.6%.
Exhibit 1: Comparable Supply Set, Michigan PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 10 years Horizon
[Table or chart rendered in delivered report.]
Exhibit 3: Subject Capture Rate vs. PMA Absorption Capacity
[Table or chart rendered in delivered report.]
Analytical Conclusions
- Ottawa County and adjacent Lake Michigan counties registered 38,200 recreational vessels.
- Comparable indoor-heated marine storage operated at 96% occupancy with 14-month average waitlists.
- Subject reached 88% physical occupancy in month 16 of the projected absorption schedule.
- Stabilized 504 DSCR of 1.43x cleared the program review threshold.
Deliverable
The delivered report ran 132 pages with 30 exhibits distributed across nine analytical sections, plus appendices documenting comparable supply data, demographic inputs, and financial projection assumptions. The document was prepared to the documentation standards of the SBA Certified Development Company. The corresponding SBA 504 review framework guided exhibit selection and supporting documentation.