BlueGate Boat & RV Storage, an affiliate of Madison Capital Group, has entered a $250 million joint venture with GEM Realty Capital aimed at expanding its boat and RV self-storage platform across the United States.
The companies said the partnership will support both acquisitions and new development as BlueGate targets markets with high concentrations of boat and RV ownership. According to the announcement, the venture is intended to help the company build on its existing portfolio in high-demand markets.
"The recreational-storage space is ripe for institutional investment", said Ken Carpenter, president of Madison Capital. "This partnership with GEM gives us the capital and strategic alignment needed to scale quickly and responsibly. BlueGate is building a recognized brand that boat and RV owners trust for their long-term storage needs."
Derek Lopez, chief investment officer of private markets for GEM, said the firm has been studying and investing in related sectors. "Over the past several years, GEM has actively surveyed and invested in the marina and RV- and boat-storage sectors. In line with our strategy of partnering with best-in-class operators in specialized asset classes, we are thrilled to collaborate with the BlueGate team to build a premier portfolio", added Derek Lopez, chief investment officer of private markets for GEM.
BlueGate President Neil Dyer said the company plans to continue growing through development and acquisitions. "We see strong demand in the sector and remain committed to growth through strategic acquisitions and development", said BlueGate President Neil Dyer. "At the same time, we’ll continue to deliver the best possible experience for our tenants and communities."
Founded in 2021, BlueGate currently operates 14 boat/RV-storage facilities and two marinas in six states. Its portfolio includes 1.9 million square feet of rentable square feet in more than 3,500 boat/RV-storage spaces, along with nearly 495,000 linear feet of marina capacity across 583 slips.
The company also has two boat/RV-storage properties under construction in Bonita Springs, Florida, and Christiana, Tennessee. Both are scheduled to open this month.
GEM, founded in 1994 and headquartered in Chicago, invests in debt, equity, private and public real estate and has $6 billion in assets under management. Madison Capital, based in Charlotte, North Carolina, is a real estate investment and development firm focused primarily on multi-family and self-storage. It also operates the Go Store It Self Storage brand, which has 146 locations in 23 states.