Program Overview

Gateway Fractional Ownership

Adventure Yachting Excellence… at a fraction of the price.

PROGRAM OVERVIEW

Share sizes are available in 1/8, 1/4, and 1/2 or larger fractions in 1/8 increments.  No matter how you slice it, a 1/8 share costs roughly 1/8 the total cost of solo ownership.  That makes owning within the Gateway program the lowest cost option for enjoying time on the water – and it’s a better ownership experience as we do all the work while providing top-shelf concierge service.  More boat, less money, better service.

Fractional ownership positions are offered in the Nordic Tug 39′ and 54′ versions, as well as three new Aspen models including their 28’, 36’, and 54’ Adventure Yachts.  Gateway is also offering positions in two rugged all-aluminum Hewescraft fishing machines.  Teaming up with these three manufacturers makes sense as they are all building terrific, efficient, and versatile products, and they are all manufactured in Washington State. These relationships give Gateway input into making the fleet of yachts as common as possible so that program members can easily transition from one yacht to another.

Starting with new yachts, and not taking in a pre-owned assortment, means that we have a quality and reliable program from the start, not one that is full of maintenance hassles and many different boat types and corresponding issues. With owner operated yachts, this standard and modern fleet differential is the key to building and maintaining a solid and well deserved reputation for excellence.

• Efficient Use of Capital.  A 1/8 interest represents the smallest share size available in the Gateway program. Providing a minimum of 5 guaranteed availability weeks plus unlimited open time opportunities, it will easily fill the needs of most casual owners for just a fraction of the cost. Program participants are registered owners of an undivided interest in a specific hull number. They thus have the privileges of ownership that tax law allows. Additionally, you will have the opportunity to participate in earning charter revenue with your share and can turn over unused time in an opportunity to reduce your ownership costs even further. While you own a specific undivided interest, our common fleet means that your scheduling requirements can also be met with other vessels that are nearly identical to your own, although the program’s goal will be to schedule the majority of your use in your specific hull number. You will also have the opportunity to trade with other owners for larger, smaller, or fishing versions. This is a huge benefit of the program’s design that maximizes use opportunity for all program participants.

• Predictability of your Expenses.  As a fractional yacht owner, your costs are fixed and predictable for the entire term of your contract, which is typically two years. There is no mandatory sell-back at the end of the initial contract term, and your management agreement can be renewed at prevailing monthly management rates.
• Better Ownership Experience.  At Gateway our goal is to turn the famously funny two happiest days in a yacht owner’s life (the day they buy it, and the day they sell it) into just the first happiest day event! A solo yacht owner is 100% responsible for their yacht’s maintenance, cleaning, and upkeep – but not at Gateway! That means that every time you come to the marina there is little to no prep work involved on your part, we anticipate your needs and work our hardest to fulfill them. The boat will be clean, well maintained, and ready to go upon your arrival. You will fill out an Owner Preferences Worksheet and we will set up the boat to meet your trip needs with your personal preferences in mind.  Should you have personal items that you wish to have on board for each voyage, we will store and then replace those items for you. And when you arrive back at the dock, we will be there to greet you, help you on your way, and you can leave the cleaning and maintenance to us. If you’ve ever been a boat owner, you know the amount of labor and time that goes into prepping and then putting to rest your prized possession. Your piece of mind will also be enhanced knowing that the systems are being maintained on a regular schedule by professionals. And if you ever have a problem, Gateway’s relationship with Vessel Assist and the manufacturers ensures that we’ll get the yacht back underway as efficiently and safely as possible. Of course before your first solo journey we ensure that you have the training and experience necessary to handle the conditions of your trip. All Gateway Yachts are equipped with the latest sophisticated systems, such as GPS, radar, remote controlled autopilot, bow & stern thrusters, etc, which help to make maneuvering and handling as easy and as safe as possible. Still, all the equipment in the world does not substitute for knowledge and experience, and that’s why we have simple checklists and effective training programs in place.  Your safety is our number one priority – period. And if you don’t feel comfortable, we’ll work with you until you are.  We can also help you plan and even coordinate your trip to make it the most pleasurable experience possible.  Additionally, we can help track your progress and will act as your backstop via your trip “floatplan.”
• Greenest Motor Yachting Possible.  Gateway is committed to providing the smallest environmental footprint possible. To this end we have chosen the Nordic Tugs and Aspen power yacht lines, the most fuel efficient yachts available. Aspen’s power-proa hulls also leave the smallest wake of any boat their size. And our Hewescraft ultimate fishing boats are made of light weight aluminum, making them not only extremely durable but also lightweight and fuel efficient. Fractional Ownership is inherently green as sharing an asset means a smaller overall footprint in the marina and on our environment.

PROGRAM ENTRY

Compared to owning a yacht all by oneself, the Gateway fractional program removes huge financial hurdles and is simply the intelligent way to enjoy yachting.

Let’s take a typical yacht purchase transaction as an example. If you’re buying that boat by yourself, you are likely going to be required to place a minimum of 15 to 20% down and then finance the rest for a period of 10 to 20 years… or pay cash and lose the time value and other opportunities associated with such a large outlay. Instead, the same transaction at Gateway will give you a better ownership experience while a 1/8 fraction will cost you less than just your down payment with conventional solo financing.

Paying cash for your share avoids ALL of the interest expense of conventional ownership; however, financing options are available through Gateway Yacht Capital if desired to a limited number of owners.   If you currently own another boat, Gateway may be able to broker it for you, it may even be possible to trade the equity in your current boat; we’ll do our utmost to make entry into the program as easy as possible.

COMMON FLEET

All yachts brought into the program have as common as possible equipment and options. Additionally, all three Aspen sizes have similar layouts, similar system designs, and similar handling characteristics making movement across the yacht fleet easy. Our Hewescraft fishing boats also carry the same electronics.

Of course we also make upgrading easy, both in terms of interest size and yacht size. You’ll have confidence knowing that the larger the fleet grows, the more potential availability you will have as more yachts mean a more flexible schedule and more schedule backup.

COST COMPONENTS

Prices vary depending on the fractional size you choose. We’ll help you evaluate your usage requirements and get you into a program that fits your vision. If your projected usage is two or less outings per year, then charter is an option to consider. On the opposite end of the spectrum, you are welcome to own a 100% share in your personal adventure yacht and we can manage it for you either inside or outside of the fractional program, either with charter involved or not involved. Participation inside of the program gives you access to other yachts as a backup or to experience other sizes.

Purchase costs are but one component of the total cost of ownership. Upfront costs include the cost of equipment options and outfitting that can easily add 20% to the base purchase price or even more. Joint ownership is outstanding for its ability to limit depreciation expense and to lower overall ownership risk.

• Acquisition Cost.  There is a one-time acquisition cost based on the interest size desired as a fraction of the total value of the yacht, optional equipment, and initial outfitting required. At the end of your initial two-year agreement, there is no additional capital outlay required, you simply renew your management agreement for an additional 2-years at the prevailing rates, or with our help sell your interest at fair market value.
• Monthly Management Fee.  The monthly management fee is a fixed cost that covers indirect operating costs including moorage, scheduled maintenance, engine reserves, insurance, cleaning and all other recurring costs. We have made these fees as inclusive as possible so that you are not “nickel and dimed,” something that is, unfortunately, not uncommon in other ownership programs, especially some charter programs. However, to be fair to all participants we don’t want to share costs that are rightly an individual’s responsibility, thus there must be charges for services outside of recurring operating expenses.
• Other Fees.  All other costs can be coordinated for you at your choosing. We will gladly provide any service we can for you, but if we are required to front the money for the expense then a standard 20% service charge will be added. For example, fuel is your expense, however we will gladly fill the tanks up for you (luckily, and not by accident, we chose the most fuel efficient yachts there are). We will gladly help with trip planning as desired for you and doing so is a part of the free service we offer unless we must make payment for you (no outlay, no charge policy).