NorthReport | Issue 02 | First Quarter 2022

NorthReport | Issue 02 | First Quarter 2022

26 NORTH R E P O R T F I R S T QUA R T E R 2 0 2 2 | I S S U E 0 2

Dear North Report Readers,

While summer in South Florida is definitely the high season for yachting and watersports, winter brings its own pleasures for maritime enthusiasts. Right now, many of our clients are enjoying cool breezes across the stern as they dine al fresco and look forward to the next major event to cruise through town. Things are looking great from our perch, too. The yacht market continues to see strong activity, dominated primarily by both new and pre-owned sales in the American market. Yacht sales have been riding a wave of record low interest rates, strong stock market returns and booming home values. Similar to housing, there are currently more buyers looking for late model, pre-owned yachts and new build opportunities than the market can support, which is driving up the value of existing vessels. And many premier shipyards are operating at capacity, with build times extending beyond three years due to availability. These market realities are pushing more buyers to seek out late model, well-maintained yachts for sale, which has certainly been good for our business. In fact, 26 North Yachts enjoyed a record year of growth in 2021, but we’re cautiously optimistic about 2022, bearing in mind how cyclical our industry can be. The current lack of late model inventory actually stretches back to the recession of 2008, when new yacht construction came to a screeching halt. That is one of the many reasons it’s so difficult to find pre-owned yachts built between 2008 and 2015. As yacht production increases over the next few years, the current seller’s market is expected to wane, so right now is a great time for owners of well-maintained, late model yachts of good pedigree to consider selling. If this is something you’re interested in, please reach out to our team for a fair market appraisal and to explore your options.

NICHOLAS SCHERB & MIKE CARLSON Co-Founders of 26 North Yachts

And as always, thank you for reading and enjoy our new issue of North Report Magazine.

Mike Carlson & Nicholas Scherb Co-Founders | 26 North Yachts

2525 Marina Bay Drive West, Suite 203A, Fort Lauderdale, Florida 33312 +1.954.900.9988 | 26northyachts.com /26northyachts @26northyachts.com

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A L E T T E R F R O M T H E F O U N D E R S

THEMOTORYACHT AUTHORITY With a seasoned team of experts, proven marketing strategies, and deep experience closing deals on the world’s finest yachts, 26 North Yachts knows how to position your yacht to attract the best possible sale price and terms. We combine maximum exposure with strong negotiating power and total transparency to quickly source qualified buyers from around the world who are willing to pay top dollar for your yacht.

2 6 N O R T H Y A C H T S . C O M

CONTENTS

01 A LETTER FROMTHE CEO

06

NEW& NOTEWORTHY

07 THE FUTURE IS SMOOTH, GREEN, AND LIGHTWEIGHT

11

AQ&AWITH BILL POWERS THE BENEFITS OF DONATINGAYACHT

13

17

PRO-‘FILES’: PADI AWARE FOUNDATION

UNDERSTANDING THE COSTS OFYACHT OWNERSHIP

20

LUXE LIVING

21

25

LIVINGTHE DREAM ENJOYSMOOTHSAILINGINYOUR SEARCHFORWATERFRONTPROPERTY

MOTORMADNESS DESCENDSONMIAMI

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T A B L E O F C O N T E N T S

29

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READY, AIM, TRAVEL FIVEWORLD-CLASS RESORTS FOR SHOOTING ENTHUSIASTS

EMERGING JEWELRY DESIGNERS OF 2022

36

DESTINATIONS

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41

DESTINATION NEWENGLAND

45 TOP 10 CUBAN CIGARS THAT SHOULD BE IN YOUR HUMIDOR

DESTINATION CUBA

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CURATED LISTINGS

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T A B L E O F C O N T E N T S

100 CARATS PURE LUXURY of

exclusi vel y at Provident Jewel r y

WEST PALM 561.833.7755

NAPLES 239.649.7200

JUPITER 561.747.4449

FORT MYERS 239.274.7777

PALM BEACH 561.833.0550

WELLINGTON 561.798.0777

P ROV I D E NTJ EWE L RY. COM

100.08 carat diamond, Cushion Cut, D color, VS1 Clarity. *Shown at actual size

NEW& NOTEWORTHY

26N

THEFUTURE ISSMOOTH, GREEN,ANDLIGHTWEIGHT CRAFTED BY EMMANUEL AJIBOYE

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T H E F U T U R E I S S M O O T H , G R E E N , A N D L I G H T W E I G H T

N E W & N O T E WO R T H Y

Yachting trends have been pretty interesting to keep up with over the years, with innovations in everything from space and comfort to sleeker designs, advanced technology, and improved safety. However, while yachting has never looked so good, onboard innovations have yet to reach their peak. Instead, it seems like we are still in the early stages. At the intersection of the needs of boaters and the genius of builders lie insights into the future of yachting. SMOOTHER YACHTING Spilled wine and guests slinging their lunch over the side of your yacht are not what anyone wants to see. Fortunately, several recent trends have improved yacht stabilization. From fins and gyroscopic stabilizers to interceptors, there are several new ways to keep your journey stable and smooth. Interesting strides are also being made to make stabilization equipment more efficient than ever. For example, VEEM recently unveiled their new VG1000 SD – the world’s largest gyro stabilizer designed specifically for superyachts. Interestingly, the yachting industry is also seeing a growing trend in gyro refits, because if there’s something better than one gyro stabilizer, it’s two! In addition, we see a new range of much more efficient interceptors being designed for vessels up to 300 feet, operating in the 20 to 60-knot range. For example, the Humphree HLS active interceptor series, created for megayachts, is said to be 25% more efficient than trim tabs. Moving forward, we are likely to see more yachts with a combination of several stabilization systems. Total Ride Control from Naiad Dynamics is a custom stabilization package that incorporates various cutting-edge technologies such as fins, canards, T-foils, interceptors, trim tabs, spanning foils, air cushions, and Dynamic Hull Vanes. Naiad combines these systems in novel and effective ways depending on the vessel’s requirements.

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T H E F U T U R E I S S M O O T H , G R E E N , A N D L I G H T W E I G H T

N E W & N O T E WO R T H Y

The 350-foot Black Pearl can sail across the Atlantic without burning any fossil fuel.

In a world increasingly concerned with reducing its carbon footprint and saving natural resources, green yachting continues to be a growing trend. For many years, builders have tinkered with yachts to make them run on alternatives to diesel, and some of this research is yielding promising results; and as demand increases, we’ll see more breakthrough innovations in sustainable yachting. YACHTS POWERED BY ALTERNATIVE POWER SOURCES Several boatbuilders, such as Greenline Yachts, are already offering hybrid yachts, while others are making advancements in solar technologies. In 2019, the Serenity 74 launched with about 1,200 square feet of solar panels to support the yacht’s power functions while cruising. Serenity achieved this by building the rest of the yacht around its solar array instead of making it an afterthought.

Apart from solar technology, we also see yacht builders like Alva turn to electric propulsion systems as the sole source of power. Oceanco has also explored hybrids; their 350-foot DynaRig yacht, Black Pearl, can sail across the Atlantic without burning any fossil fuel. Alternative energy company, Energy Observer Developments, is also developing hydrogen fueling stations that float in the corner of a marina and generate hydrogen from seawater. We’re also seeing innovations in power management, storage, and monitoring, with new battery banks and intelligent monitoring systems expected from builders in 2022 and beyond.

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T H E F U T U R E I S S M O O T H , G R E E N , A N D L I G H T W E I G H T

N E W & N O T E WO R T H Y

LIGHTWEIGHT BUILDING MATERIALS

Sturdy wooden boats and thick fiberglass hulls may have been the hallmark of great yachts, but that era is slowly coming to an end. In their place, we now see lightweight building materials such as carbon fiber, Corecell, Divinycell, and 3D printing technology. These materials increase hydrodynamics and make yachts lighter and faster. Fortunately, while these materials are lighter, they are as strong as – or stronger than – traditional boat-building materials.

As technology advances, new materials are being tested and more builders are beginning to combine the old and the new. For example, we’ll soon see more innovations like resin infusion, foam-core stringers and bulkheads, and traditional processes used to make composites, like carbon-fiber-infused hulls.

The Serenity 74 catamaran features about 1,200 square feet of solar panels.

ENDLESS POSSIBILITIES ON THE HORIZON

It certainly looks like smoother, more sustainable, and lightweight yachting will start to catch on in 2022, but what else does the future hold for yachting?

Marine architects and engineers predict that 3D-printed yachts will arrive by 2050, while other designers foresee yachts that will be able to shapeshift – luxurious and conspicuous one day, and practically invisible the next. Multihull yachts could also be the norm in little more than a decade.

Wherever the future of yachting takes us, we can be confident that there are endless possibilities in store.

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T H E F U T U R E I S S M O O T H , G R E E N , A N D L I G H T W E I G H T

N E W & N O T E WO R T H Y

WITH BILL POWERS THE BENEFITS OF DONATING AYACHT Q&A

CRAFTED BY CHRISTIAN CIPRIANI

The Adventurer, an 86’ Burger Yacht, donated in 2021 with the help of Bill Powers at 26 North Yachts.

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Q & A W I T H B I L L P O W E R S , B R O K E R A T 2 6 N O R T H Y A C H T S

N E W & N O T E WO R T H Y

While most conversations about the yacht market are dominated by talk of buying and selling, there is a third option: donating. At first glance, this may not sound attractive to someone who’s spent quite a bit of money on their dream vessel, but as Bill Powers of 26 North Yachts explains, donating your yacht provides dual benefits: a charity gets a valuable fundraising asset, while you get a lucrative tax break and the chance to help a worthy cause.

BELIEVE IT OR NOT, GIVING IT AWAY CAN BE YOUR BEST OPTION

FIRST, WHAT KIND OF NONPROFITS ACCEPT BOAT DONATIONS? “Charities with many different causes accept boats. Most of them are here in South Florida and are focused on causes like marine preservation and children’s needs. The key is to find a charity with the infrastructure to properly handle boat donations, because it’s an intricately structured process. Some charities will just give you a tax write-off for a boat’s present market value, but I steer donors towards charities that are set up to hold title for a lease-to-own period of three years. During this time, they must make ‘significant capital improvements’ of about 5-10% of the boat’s value in order to comply with IRS regulations. This allows the donor to write-off the full amount of their appraised value.” WHAT TYPES OF BOATS WILL NONPROFITS ACCEPT? “Every vessel can be a great candidate for donation; however, the ideal donor yacht is something unique that an owner has put money into but is having a hard time selling. In this case, its appraised write-off value after improvements can end up being a lot higher than what the vessel would fetch in today’s market.” WHAT DOES THE BOAT DONATION PROCESS LOOK LIKE? “The first step is to hire an accredited surveyor to appraise the boat. Then, the owner should connect with someone like me to help them identify charities with a history of successful donations and that have processes in place to handle a boat donation. The last thing you want is to get involved with a disreputable organization. Once we select a charity and all parties agree that the boat is a fit, the charity can execute the paperwork within a week. And then that’s it: no more insurance, dock fees, crew salaries or other carrying costs. It’s fast and simple, which is why many owners like this option.”

WHAT ARE THE BENEFITS FOR THE DONOR? “The main benefit is the tax write-off, but it’s also a stress-free process. It can take months or even years to sell a yacht, and the owner must pay carrying costs that whole time. Donating a boat can be executed on a specific timeline. For example, I had a client who wanted to donate a yacht by the end of the year but had charters booked through Thanksgiving. It wasn’t an issue, though. After the charter trips, we completed the donation process in about a week. In addition, boats donated to a charity are not subject to a pre-purchase survey, which typically leads to a second round of negotiations in a standard deal.” CAN YOU BUY A BOAT FROM A NON-PROFIT? “Yes, that’s the other side of the equation. Charities that accept a donated boat and make capital improvements are looking to lease because they need that revenue for their mission. Typical yacht leases from a charity are one-third down, one-third paid in installments and then a final one-third balloon payment, and when you lease from a charity, the buyer essentially gets zero-percent financing. And because the IRS requires the charity to make significant improvements, you get a vessel with fresh investments. The last advantage is that you’re not buying from an owner, so it’s not an emotional transaction. The charity wants to dispose of the asset quickly for a fair price. This translates to an easier negotiation both up front and after survey.”

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Q & A W I T H B I L L P O W E R S , B R O K E R A T 2 6 N O R T H Y A C H T S

N E W & N O T E WO R T H Y

NORTH REPORT PRO-‘FILES’: PADI AWARE FOUNDATION

CRAFTED BY CHRISTINE SMITH

PADI AWARE’s diver education programs have created ocean advocates worldwide.

With a network of 6,600 dive centers and over 128,000 professional members, PADI (Professional Association of Diving Instructors) has leveraged its global reach to create the PADI AWARE Foundation – a nonprofit aimed at restoring and protecting our world below the water.

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N O R T H R E P O R T P R O - ‘ F I L E S ’ : P A D I A W A R E F O U N D A T I O N

N E W & N O T E W O R T H Y

Kristin Valette Wirth has been a member of PADI since 1995 and is now the Chief Brand Membership Officer for PADI Worldwide. She’s seen PADI’s immense impact on ocean conservation firsthand. We recently talked to Kristin about PADI’s blueprint for ocean action and why it is critical for everyone to get involved and create change. For over 30 years the PADI AWARE Foundation has driven local action for global ocean conservation. Seeing the damaging impact marine debris is causing, PADI engages and activates the diving community to become change-makers. Kristin believes a love for the ocean creates lifelong marine advocates and proudly shares that PADI has issued more than 29 million certifications across 183 countries to date. Through their diver education programs, they’ve created ocean advocates worldwide. Their collective mission is built upon three foundational pillars that make their ambitious shared blueprint for ocean action a reality.

Divers collecting marine debris for analysis.

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N O R T H R E P O R T P R O - ‘ F I L E S ’ : P A D I A W A R E F O U N D A T I O N

N E W & N O T E W O R T H Y

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