Morningstar Marinas Purchases Norfolk Marina

Morningstar Marinas continues to expand its portfolio with the purchase of Vinings Landing Marina on Little Creek in Norfolk, Virginia. The company, based in Charlotte, North Carolina, now owns and operates 10 marinas in five states and plans to add three more marinas within the year.

“We’re excited to welcome Norfolk to the Morningstar Marinas family,” said Dave Benson, chief executive officer for Morningstar Properties, which owns Morningstar Marinas. “The marina has fantastic presence, convenience and opportunity, and is located in one of the most dynamic local markets in tidewater Virginia. Our goal at Morningstar is to create the highest quality marina experience for our customers through best-in-class properties. We are eager to begin renovations to modernize the facility and bring the marina to the high standards that boaters have come to expect from Morningstar Marinas.”

The marina, which will now be known as Morningstar Marinas at Little Creek, will undergo a renovation including rebuilding the dock systems and the addition of a new ship’s store.

With direct access to the Chesapeake Bay, the marina offers more than 500 wet and dry slips, an on-site restaurant, a full-service gas dock, unlimited launches for indoor storage, electric, water, and Wi-Fi for wet slips.

The previous owner was a private equity group that purchased the marina in July 2017. At that time the marina was underperforming and needed professional management to make it profitable. The equity group hired Coastal Properties Management Inc. to manage and reorganize the facility, and ultimately procure a buyer. Coastal’s Real Estate Division was the procuring broker in the sale to Morningstar Marinas, which closed on February 10.

In assuming management of the marina, Coastal faced several challenges related to the poor condition of the wet slip docks, dock electric systems, bulkheads, buildings, safety and protective systems, and equipment. “There had also been a lack of consistent management and customer service for years causing a loss of regular and new customers and a poor reputation in the region,” Bruce Wagner, president of Coastal Properties Management said.
Coastal hired a new manager and focused on increasing the level of customer service through team training and improved procedures. While making improvements to the infrastructure, Coastal began marketing the new ownership and professional management.

The marina’s top profit center is the dry storage boatel, which can accommodate 300 to 400 boats. The double-bay building includes three forklifts, running seven days a week.

Coastal upgraded several unrented office rentals and brought in four new tenants on multiple-year leases, including a popular waterfront restaurant. The property also received some cosmetic upgrades such as landscaping, a general cleanup and organization of all areas.

“The substantial infrastructure improvements and additions, improved customer service, and the addition of the new restaurant, and tenants were hugely successful in the overall increase of the value, financial improvements and customer appreciation of the marina,” Wagner said.