The Mandate
A repeat outdoor-hospitality operator acquiring an underperforming park engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a SBA 7(a) financing request for a project located in Horry County, South Carolina. Total project capitalization fell within the $3M-$5M band. The capital provider, a specialty SBA lender, required documentation consistent with current program review standards. The analytical question put to the team: Did Myrtle Beach leisure inflows and seasonal-RV demand support a turnaround thesis at the proposed acquisition basis.
Engagement Scope
- Primary market area defined as a 30-mile drive-time
- Comparable supply set of 10 properties
- Demand model framework: leisure RV-night and seasonal-site demand build
- Financial projection horizon: 7 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 30-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of rv park assets in South Carolina. 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 10 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a leisure RV-night and seasonal-site demand build approach over a 7 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 2.4 across the projection window, with a stabilized capture rate of 3.9%.
Exhibit 1: Comparable Supply Set, South Carolina PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 7 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
- Myrtle Beach area captured 19.6 million annual visitors with 22% RV-segment share.
- Comparable Grand Strand RV parks operated at 78% peak-season occupancy with $68 to $94 nightly rates.
- Seasonal-site lease-up of 28 of 65 sites was supported by current waitlists at comparable parks.
- Year-three DSCR of 1.41x cleared the SBA 7(a) review threshold.
Deliverable
The delivered report ran 116 pages with 27 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 specialty SBA lender. The corresponding SBA 7(a) review framework guided exhibit selection and supporting documentation.