Key Takeaways
- • Mystic River Marina on Masons Island in Stonington, Connecticut, a 145-slip facility owned by the Garbarino family for 69 years, sold for $5 million according to property records, with the deed recorded September 28.
- • The buyer is Bluewater Mystic River LLC, an entity tied to a joint venture between Bain Capital Real Estate and BlueWater Marinas, as reported by Hartford Business Journal.
- • Cambridge Savings Bank of Waltham, Massachusetts, issued a $9.1 million commercial mortgage on the deal, nearly twice the recorded purchase price.
- • The Mystic sale was one of two acquisitions the joint venture announced last month, alongside the 220-slip Ripley Light Drystack Marina in Charleston, South Carolina, marking the sixth and seventh platform additions per Trade Only Today.
- • Institutional marina investment has been supported by a 2019 IRS ruling that allows slip and storage fees to be treated as real estate rents, per The Real Deal.
Summary
Mystic River Marina on the western shore of Masons Island in the Stonington portion of Mystic, Connecticut, has been sold to Bluewater Mystic River LLC, according to property records. The 145-slip marina sold for $5 million, closing out four generations of Garbarino family ownership that began when brothers Gene and Fred Garbarino dredged part of the harbor and started installing docks in 1957. The buyer is tied to a joint venture between Bain Capital Real Estate and BlueWater Marinas, as reported by Hartford Business Journal. The deed, recorded September 28, covers the 3.8-acre marina property at 36 Quarry Road along with 1.33 acres of abutting land. Cambridge Savings Bank issued a $9.1 million commercial mortgage in connection with the transaction.
The property includes three buildings totaling roughly 18,400 square feet, including a two-story structure with restaurant, office and service space, a 7,200-square-foot service building and a 2,052-square-foot commercial building, with construction dating from 1958 to 1970. The marina serves owners of larger coastal vessels and offers fuel, boat service, brokerage, dry storage and a ship store. Gene Garbarino's son Bob, along with Skip Garbarino, acquired the marina in the late 1970s, and later generations, most recently Lauren and Kelcey Garbarino, operated the business, according to BlueWater Marinas.
The sale is part of a broader acquisition program. Per Trade Only Today, it was one of two deals announced last month, the other being the 220-slip Ripley Light Drystack Marina in Charleston, South Carolina. Together these marked the sixth and seventh acquisitions for the joint venture. Earlier in the year the venture acquired Kent Narrows Boatel in Maryland and Bayside Marine in Duxbury, Massachusetts. BlueWater's East Coast footprint now spans seven marinas across Massachusetts, Connecticut, Maryland, South Carolina and Florida. BlueWater declined an interview request from Hartford Business Journal. Bain Capital, founded in 1984 and based in Boston, says it manages approximately $225 billion in assets across private equity, real estate, credit and venture capital, according to its website.
Investors have increasingly treated marinas as real estate. The Real Deal reports that a 2019 IRS ruling allowed slip and storage fees to be treated as real estate rents, giving buyers tax advantages similar to traditional commercial property owners. According to PYMNTS, Safe Harbor Marinas agreed in August to acquire boat retailer and marina operator MarineMax in a $1.5 billion deal backed by Blackstone.
The property includes three buildings totaling roughly 18,400 square feet, including a two-story structure with restaurant, office and service space, a 7,200-square-foot service building and a 2,052-square-foot commercial building, with construction dating from 1958 to 1970. The marina serves owners of larger coastal vessels and offers fuel, boat service, brokerage, dry storage and a ship store. Gene Garbarino's son Bob, along with Skip Garbarino, acquired the marina in the late 1970s, and later generations, most recently Lauren and Kelcey Garbarino, operated the business, according to BlueWater Marinas.
The sale is part of a broader acquisition program. Per Trade Only Today, it was one of two deals announced last month, the other being the 220-slip Ripley Light Drystack Marina in Charleston, South Carolina. Together these marked the sixth and seventh acquisitions for the joint venture. Earlier in the year the venture acquired Kent Narrows Boatel in Maryland and Bayside Marine in Duxbury, Massachusetts. BlueWater's East Coast footprint now spans seven marinas across Massachusetts, Connecticut, Maryland, South Carolina and Florida. BlueWater declined an interview request from Hartford Business Journal. Bain Capital, founded in 1984 and based in Boston, says it manages approximately $225 billion in assets across private equity, real estate, credit and venture capital, according to its website.
Investors have increasingly treated marinas as real estate. The Real Deal reports that a 2019 IRS ruling allowed slip and storage fees to be treated as real estate rents, giving buyers tax advantages similar to traditional commercial property owners. According to PYMNTS, Safe Harbor Marinas agreed in August to acquire boat retailer and marina operator MarineMax in a $1.5 billion deal backed by Blackstone.
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