Lauderdale Marine Center now a Safe Harbor $340M

Safe Harbor is currently in negotiations for buying Skipjack Cove Marina on the Sassafras River.

First, let's remind ourselves it's not Safe Harbor but it's Sun Communities behind it now. Second, these are seldom cash purchases, but generally some cash and mostly stock.

Is it risky? Certainly aggressive. However, likely sustainable and, at worse, well protected by ability to borrow and/or bankruptcy courts. We don't know the intricacies of the purchases or the legal framework of the various entities. Still REIT's are very popular right now. Even mall REIT's like Simon can find all the funds they want. So, risk of a total collapse, I don't think so. Risk of eventually selling or closing some, quite possibly. Risk to boaters of higher prices or decrease in services, likely moderate short term, but unpredictable long term. Still only 115 marinas in 22 states.

As a boat owner using a yard (not LMC) now owned by Safe Harbor do I feel the same I did before? No, I'm less trusting. I knew the previous ownership and I know the history of Safe Harbor and don't know Sun Communities and not nearly as comfortable as I was before, just uncertain.

Let me add that this has a similar feel to me as the acquisitions by Marine Max. Both very aggressive. However, I must be a bit careful in judging as in our business we've been very aggressive with acquisitions although of a much smaller nature. However, each time we acquired a store, I think there was cause for people to wonder. Have to always wait until you prove yourself or until you fail to do so. The last year has opened a lot of opportunities and we're not now in a buying mode but if we were the landscape is very open for an aggressive buyer of businesses.

Rest assured there are hundreds of others they have talked to and dozens they've actually entered into negotiations with.

As a long time customer, I was disappointed with present management when they took over, and so were a lot of other people.
Only time will tell if new management is any better. They were top heavy on staff, will be interested to see who's left.

So you're like me on West Marine, the new owners might just be better and can't be worse than the recently new owners.

That's the feeling with customers at Skipjack Cove too.