Lake Waco Marina Update

• Unfortunately, Lake Waco has suffered its fair share of environmental problems. In 2022/2023, Waco went through an unprecedented drought which caused severe strain on occupancy in both the RV park and the Marina. Things were looking up in 2024 when lake levels finally rose to capacity! Unfortunately, the level kept growing until the lake was 16' over normal lake levels. In May, straight-line winds caused severe damage across both marinas. After the clouds parted, there was over $830k in damages. This was the owners' first insurance claim in 19 years of ownership. While the damage was extensive, it gave the owner a renewed interest in developing the park. Below is a list of the damage and plans to rebuild the park.
• Lake Waco Marina: Totaled Docks: K, G, W, and J Damaged property: A, C, F, The Minnow, Small and Large Shops
• Ongoing rebuilding: B dock K Dock has been completely rebuilt and is about 80% installed. Completion in November G Dock has been completely replaced with a new dock and will be installed in Nov/Dec W Dock has been completely replaced with a new dock and will be installed in Jan/Feb J Dock will be partially rebuilt and partially replaced with a new dock Mar/April A Dock will be repaired C Dock will be replaced with a new dock The Minnow Restaurant is in the process of being repaired and remodeled with completion in November B Dock at the Cove has been repaired and will be complete in December The small shop has had a new roof and awning as well as a new coat of paint as of October The large shop has had the roof repaired The RV Park is back in operation as well at the maintenance shop. The ship store is in operation
• Notes from property owner: We have received an email that states we are eligible for a 25-year lease with a 25-year extension. The lease is in the process of getting renewed and should be complete by March of 2025. The USACE has also stated that if there is a purchaser there would be a new lease that would also be a 50-year lease.

Executive Summary

• Lake Waco is located in the Waco MSA which has a population of 280,428. With over 15 million people residing within a three hour drive, Waco is perfectly centered between Dallas-Fort Worth, Bryan/College Station, and Austin and only a short drive from Houston and San Antonio! Pre-covid, Waco averaged 2.44 million visitors between 2016-2019. In 2022, an estimated 1.9 million people visited Waco, TX. In 2022, local hotel occupancy has outperformed the Texas average by as much as 5%-19%. Providing different lodging choices (glamping, vintage trailers, cabins, houseboats) along with improving the guest experience will be sure to attract some of the nearly 1.9 million people visiting Waco every year!
• This investment offer presents the future owner with the ability to effectively control lake operations in one of the most coveted areas of Texas. Only three marinas exist on this year-round 8,465-acre Corps of Engineer lake and of those three only two are public marinas. Furthermore, there currently exists only one privately owned RV park with the entitlements already in place to develop a second one at the second marina. Furthermore, no boat rentals, ship stores, or restaurants exist giving the new owner an immediate pathway to develop a number of innovative revenue streams in one of the top 15 Texas destinations (according to https://travel.usnews.com/rankings/best-places-to-visit-in-texas/).
• Lake Waco Marina & RV Park is actually composed of two separate facilities, Lake Waco Marina and The Cove. Lake Waco currently has 71 FHU sites and 15 water/electric with the ability to expand to any of the 94 acres. The marina consists of several different types of boat slips, a floating restaurant, and a boat shop. Currently, there are 201 boat slips available at 87% occupancy, but the marina is allotted for 407 allowing for growth as needed.
• The Cove currently operates as a marina only with 46 available slips with occupancy at 78% and a total of 257 allotted with the ability to expand on 55 acres. The marina has been going through a renovation process and only recently has been bringing in new tenants. There used to be a small RV park so water/electricity/sewer are in place so extending lodging here is a sensible decision to increase revenue. Also, a soon-to-be-developed park will link China Spring to Downtown Waco with an extensive hiking/bike path. An enterprising entrepreneur could continue a path into The Cove and provide a lakeside restaurant for people to enjoy. Currently, there is no operational lakeside restaurant. The nearby Brazos River has two restaurants that are constantly packed throughout the day.
• For purposes of the pro forma, we made increases in revenue assuming the property will be marketed more broadly, dynamic pricing will be utilized, and added assumptions based on a small rental fleet (3 Pontoons, 2 fish/ski, and 2 jet skis) and leasing the floating restaurant at $15/sf NNN. We made modest increases to revenue for the marina and RV park assuming the increased marketing budget will correlate to increased occupancy. We also assumed a year 1 CAPEX budget of $424K for added amenities, rental fleet, and to bring septic to the remaining 15 RV sites.