After creating a new division focusing on RV campgrounds and manufactured housing communities last year, HAN Capital has acquired its second campground site: an exquisite 44-acre property nestled within the Rocky Mountains right beside the Colorado River.
As per a press release, the location boasts a combination of cabins, cottages, RV, and tent spots with an on-site restaurant and a stunning event space. In an attached photo, 115-site Glenwood Canyon Resort seems to have been acquired for $14,250,000.
HAN Capital weighed out the move into this new asset class carefully, and “it just made sense.”
HAN Capital’s VP of Acquisition Brendan Hula noted: “There were many favorable tailwinds already in place that were positively impacting the RV class, including the wave of retiring Baby Boomers (10K retire a day) as well as the unexpected enthusiasm from Millennials for RVing and their desire to generally spend time in nature and create memorable experiences.”
“Covid further amplified many of these trends and accelerated additional ones, such as the ability to work remotely. We expect these to be lasting trends that will continue to favorably impact RV campgrounds and resorts,” Hula added.
Overall, Glenwood Canyon Resort presented too many favorable conditions to pass up for a company that has finely tuned its process for identifying diamond-in-the-rough properties, the release further noted.
“It was a strong and stable cash-flowing business with many opportunities to further enhance NOI. These include operational efficiencies, such as operating the park during the off-season and catering to the high demand for seasonal workforce housing, as well as raising rates to market and taking advantage of development opportunities” said Hula. “But most notably of all”, he continued, “this is an institutional-quality trophy property, located in one of the most beautiful natural settings you’ll ever see”.
About HAN Capital
HAN Capital is a private equity firm investing in real estate. Founded in 2009 by brothers Nik and Alex Turik, the company focuses on self storage, senior housing, and manufactured housing communities but remains open to other value-add opportunities.
For more information, visit http://www.hancapitalgroup.com.
Featured image from Glenwood Canyon Resort.