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Redwood Capital Advisors, LLC, a boutique investment firm with approximately $75 million of assets under management, is on target to capitalize on a deal pipeline worth nearly $100 million to develop and operate RV resorts across the Gulf Coast. Redwood Capital, spearheaded by special situation expert Ben Spiegel, sees opportunity in historically overlooked real estate asset classes with attractive growth that are in the early stages of institutionalization.
Why is Redwood Capital targeting RV luxury parks?
Shifting RV customer demographics means that the profile of new campers is younger, with millennials and Gen Z making up the majority of RV owners since 2021. These new campers seek luxurious amenities like parkwide wireless internet, exercise facilities, activities, and pools, which is more than the typical RV park offers. Their growing demand indicates that campsite and RV park operators have to adapt to these changing needs. But will it happen fast enough?
Traditional camping facilities like tents and basic cabins have become less attractive for glampers seeking more comfortable outdoor hospitality experiences. However, the industry is highly fragmented, with over 85% owned by mom-and-pop owner-operators lacking the resources to make these critical upgrades. There’s a gap in the market that presents a unique opportunity for developers and investors like Redwood Capital.
Redwood Capital’s development strategy is to establish luxury RV parks that meet the growing demands of today’s RV enthusiasts. Development plans will be customized to individual locations, meeting the demands of the area while servicing the broader community. Venturing into RV park development might seem like a golden opportunity, but it’s not for the inexperienced. A strict regulatory environment, scarcity of available land, and the capital intensity of new developments create high barriers to entry, limiting the supply of new RV resorts. The Redwood Capital team has spent considerable time and resources identifying specific micro-markets that lack institutional presence. They target a first-mover advantage critical to economies of scale and long-term success. Spiegel commented, “Our differentiated offering will attract a new wave of residents and visitors, revitalizing local businesses and fostering economic growth.”
About Redwood Capital Advisors, LLC
Redwood Capital Advisors is a real estate private equity sponsor based in Greenwich, CT, with a proven track record of investing and creating value in the lower-middle real estate market. The firm differentiates itself by leveraging an asset-agnostic approach, enabling asymmetrical advantages in sourcing and operation, leading to consistent, attractive risk-adjusted returns. Redwood has developed a unique competitive advantage targeting selective special situations across micro-markets within the Northeast and Sunbelt regions. In addition to RV investments, they have an incoming $15 million deal pipeline of properties in some of Connecticut’s most desirable suburbs.
