A $25-million investment fund has been announced by Colorado-based real estate investment firm, Happy Camper Capital, to purchase six to ten additional campgrounds, RV parks, and marinas.
In a press release, the company that the fifth fund reflects the continued expansion of private equity funds into the booming outdoor hospitality industry, a niche generally known for “mom and pop” operators who’ve seldom operated more than one site.
“Investors in our existing funds have been drawn not only by the substantial cash flows, but the opportunity to increase revenues at existing facilities by adding new amenities and upgrades, while also benefiting from traditional real estate tax benefits such as accelerated depreciation,” Happy Camper Co-Founder Adam Lendi said.
He also added that more and more real estate investors are on the lookout for the next big asset class as returns in multifamily apartments, self-storage, and mobile home park spaces were “shrinking and fewer good deals were to be found.”
RVing has seen tremendous growth nationwide since 2020, with new camping household numbers increasing by 4.7% in 2020 and 8.9% in 2021, according to data by Kampgrounds of America.
Happy Camper Capital was able to acquire single-unit facilities in the Midwest with its first four funds. Considering investors’ feedback, Co-Founder Justin Hoggatt said that a large diversified fund will help the company purchase facilities in various geographic markets.
“Diversification not only lowers the overall risk of a poorly performing property or the effects of a natural disaster but also enables the fund to even out cash distributions throughout the year, by balancing returns from both summer and winter RV locations,” said Hoggatt.
The $25 million Outdoor Hospitality Sun & Fund is a 506(c) private placement investment fund, available to accredited investors. Additional details can be found at www.happycampercapital.com/funds.
About Happy Camper Capital, LLC
Happy Camper Capital is a real estate investment group creating private placement investment opportunities of campgrounds, RV resorts, marinas, and similar outdoor hospitality assets. The team at Happy Camper Capital is on a mission to create lasting partnerships, opportunities, and wealth for their investors, their team, and all stakeholders, through investments in fun outdoor hospitality properties.
For more information about Happy Camper Capital, visit https://happycampercapital.com/.
Featured image from Happy Camper Capital.