Invest in Flint Creek & Rosemount Campgrounds
Invest in a first mortgage loan position and a light value-add business plan in a fast-growing real estate asset niche that provides stable current returns.Save Your Spot
Flint Creek & Rosemount Campgrounds
What to Know
EquityMultiple is pleased to offer the opportunity to invest in the Flint Creek and Rosemount Campgrounds. These properties are an investment in a first mortgage loan position, strategically located near New York, Pennsylvania, and Washington D.C.
Since the pandemic, campgrounds have had strong demand as a leisure travel option and we anticipate this trend to continue. We think this is a great opportunity to diversify your portfolio with a niche asset class that provides stable current returns.
Experienced Sponsorship Team
Rosedale Hospitality Partners has acquired, entitled, or developed over 2,000 campground sites in New York, New Hampshire, Georgia, and Michigan collectively worth over $300M in campground transaction value.
First mortgage loan offers attractive risk mitigation in evolving market conditions
‣ First mortgage loan investments like this one are entitled to repayment of principal before the Borrower and equity investors receive repayment of principal.
‣ Investors also have priority of payment on distributions from rental income and property operations. Investors are entitled to a 9.0%* net interest payment before any distributions are made to the Borrower or equity holders.
‣ The investment represents a 64% loan-to-cost based on a total project cost of $5.9M. The Investment’s basis of $12K per site represents a 55% discount to comparable sales.
‣ The property is forecasted to provide NOI that is 1.3 times the payments owed to EquityMultiple investors in year one (1.3 debt service coverage ratio). To provide further protection for a DSCR below 1.0x, the borrower will reserve $125K in a current preferred reserve.
‣ The Investment also carries full personal recourse to a principal of the Borrower which will convert into a full pledge of equity at a later date.
Strong demand for camping as a leisure travel option is expected to continue
‣ According to the 2022 Kampgrounds of America (KOA) report, camping accounted for 40% of all leisure travel in 2021, with 57M households making at least one camping trip.
‣ Economic conditions are pushing more of urban/city residents into camping, including 44% who plan to replace a leisure trip with a camping trip in 2022. As camping popularity increases during periods of inflation, campground properties are an inflation hedge for investors.
‣ Preliminary analysis for the upcoming 2023 season suggests availability to increase seasonal guest rates by approximately 50% – from $1,850 on average to $2,800 for the season, and for the remaining transient site rates by approximately 15-30%.
Well located Properties within popular tourist destinations
‣ The Properties are ideally located within a three-hour drive from New York, Pennsylvania, and Washington D.C, representing access to roughly 40M people.
‣ Flint Creek is located in the heart of the popular Finger Lakes region which attracts over 5M tourists annually for its multitude of state parks, hiking trails, award-winning wineries, and shoreline.
‣ Rosemount Camping Resort is located in Tamaqua, PA, in the eastern part of Schuylkill County, within the Pennsylvania Coal Region. Known for its state parks, caves and mines, Tamaqua is a popular leisure destination.
‣ Rosemount is only an hour drive from both Hersheypark, a popular family theme park, and from the Delaware Water Gap, an area that attracts millions of visitors annually.