The surf park industry is still in its early stages, with many companies and organizations eager to experiment with new models to succeed in the world of waves. With endless variations of wave technologies, the field is wide open for innovative concepts in surf-anchored real estate. Stoke Factory holds the keys to a design that is efficient, low-cost, and could be a game changer for the industry.
“I always like to say that we want to be the Top Golf or Starbucks of surfing, and I think we can do that given our fast development timeline, getting it done, and making sure our investors are happy,” says Darren Porter, the CMO of Stoke Factory and the creator of the film series Empire of Surf.
Porter is joined by other industry veterans like Tony Finn, with a hugely successful action sports career and member of the UNIT Surf team, as well as Jim Habig, Stoke Factory’s CEO and the executive director of International Surf Properties. ISP offers real estate at surf spots around the world including Southern Shores in Utah.
Stoke Factory is kicking off its first project by partnering with Texas Ski Ranch in New Braunfels, Texas. The wakeboarding cable park is set for a huge upgrade with a surf pool, along with additional amenities like an Aquaglide water park, which will expand the offerings at this destination located between San Antonio and Austin.
Surf Park Central spoke with the team, who know firsthand the impact surfing can have on real estate development.
Surf Park Central: What is Stoke Factory and what is the company aiming to do?
Jim Habig: Stoke Factory is a developer of wave pool projects.
Darren Porter: More specifically small footprint stuff that we can get in quickly and easily through entitlements and more cheaply relative to the rest of the industry.
Habig: We’re starting off with a small footprint because It’s affordable and you can put these on a much smaller piece of property. The opportunity at the Texas Ski Ranch is prime for us because of the entitlements in place to put in new attractions and new technology. So, it really frees us up to move quickly. And that’s one of the reasons we focused on this project versus several other projects we have in the works.
Tony Finn: I’ve known the owner of Texas Ski Ranch for more than 20 years because I used to sell him wakeboards and sponsor his park. He’s a super duper great guy, and the entire team at TSR is really awesome and already understands how to operate successfully which is a big plus.
Surf Park Central: You’ve mentioned how you’re currently aiming for a smaller footprint. How does that vary compared to what a lot of other developers are aiming to do in the industry right now?
Finn: It’s similar to what our customer did at Southern Shores. It just makes it so much easier, especially in this case because the lake’s already there. We just have to dig the existing lake a little bit deeper, get the electricity from the freeway to the lake (which is not that far), drop the UNIT wave in, and VoilÀ! People are surfing and we are spreading STOKE!
One of the big problems with the surf park industry is the capital expenditures are really, really big. As you know, a 20 million dollar project quickly turns into 40 million dollar project and then into an 80 million dollar project, etc. In our case, our CapEx plan calls for a 4 million dollar budget and it looks like we are going to be under budget. So it’s a lot easier, especially with the UNIT technology. It’s a super fun, dependable wave that can fit easily into an existing lake.
From an operational standpoint, let’s say our CapEx is around four million total versus say 40 million for a full-size dynamic wave. But, you make about half the amount of money per year on a UNIT wave than you do on a full-size dynamic wave. So from a cash flow and ROI perspective, it’s way better. Plus, 99% of the people who try our wave can surf and have fun the first time they ride it. So, it’s really fun for beginners and also rad for pros, so we get a HUGE % of repeat customers.
Surf Park Central: You have all already made an impact on the industry. What keeps you interested in surf-anchored real estate? Why is this model so powerful?
Habig: What’s nice about a wave pool is you create the surf break and all of a sudden you create extreme value where there was very little before. You can put it in the middle of the desert and people will come, because they have an anchor in their real estate holdings. Whether it is a residential or commercial development, the value added is there. Thus we are having a lot of conversations not only on the residential developers but also commercial developers and mixed use. Developers are looking to put surf pools in commercial developments such as malls and shopping centers. So, it’s pretty dynamic and pretty exciting.
Southern Shores is a prime example of where we’ve seen the lift in real estate pricing. In Utah, similar lots sell for $ 150,000, and Southern Shores with everything else being equal, are selling for $800,000 on average.
Porter: We’re basically creating beachfront property everywhere and thus surf communities.
Surf communities are a tight-knit group that watches out for each other. They are usually lower crime and higher fun factor! We think the more the better to change the culture in towns and cities and give people a healthy outlet that improves people’s mental state.
So we’re focused on creating an experience for people in these situations. We want people to stay overnight, wake up with their coffee and maybe a little fireplace, and think about surfing that day or whatever they’re going to do. Ours is a multisport facility, so they can pick a bunch of stuff. They can send the kids to the water park while they can go get some surf. They can grab a bite to eat. So, we’re trying to keep people there as long as we can. And the real estate and hospitality is really going to enhance that. We love the real estate play in what I think is the next 50 year industry.
Surf Park Central: In the surf-anchored real estate industry we’ve seen a lot of projects that get named and simply never come together, whether it’s land issues or expenses or anything else. What lessons have you learned from the industry that you can apply to Stoke Factory to help make your model successful?
Finn: KEEP IT SIMPLE!
Habig: By focusing on projects with fewer moving parts, we can achieve our goals more efficiently. That’s why the Texas Ski Ranch was the perfect choice for our first development. This project has allowed us to expand into hospitality, residential, and commercial opportunities. The site boasts two massive buildings and four bodies of water, and we’ve partnered with the owners to elevate food and beverage, hospitality, and residential offerings. Moving forward, we aim to take on more projects like this.
Surf Park Central: Surf parks are obviously anchored by surfing, but how important are other amenities to make a successful development?
Finn: You got to just make it fun for the whole family. We have a good variety of things for everyone to do besides surfing. We have wakeboarding, we have axe throwing, paintball, an aquapark, music and parties, and tasty treats and drinks.
Habig: The goal is to captivate your audience. Once they’re on the property—whether they spend an hour surfing or riding the cable park—you want them to stay and immerse themselves in the experience. That’s why we’ve created multiple beaches with lounge chairs, cocktail and food service delivered right to the shore, and a variety of attractions to keep them engaged.
Surf Park Central: Anything else people should know about this project, Stoke Factory or surf-anchored real estate development?
Porter: I think surf parks especially lend themselves really well to finding local investors. So in that pitch, it’s like, ‘Hey, if you are near the location, invest in it.’ Make a point to do that and then you get to enjoy your investment, your asset. I mean, I think that’s one of the best perks of whoever’s investing with us.
Habig: Great point. We warmly invite people to come experience everything the Stoke Factory has to offer. Whether it’s riding the perfect wave, exploring our top-tier amenities, or simply soaking in the vibrant atmosphere, there’s something for everyone. From thrilling water sports to relaxing lounge areas, we’ve designed an environment where guests can unwind, connect, and create unforgettable memories. Whether you’re a seasoned surfer or a first-time visitor, the Stoke Factory is all about delivering an exceptional experience that keeps you coming back for more.
Surf Park Central: Finally, what’s next for your current project?
Finn: We’re doing a chili cookoff and a big kickoff party on March 8th. It’s mostly going to be Wakeboarding and the Aqua Park that day. And then we will open the wave at some point in the not-too-distant future. We don’t know exactly when the wave is going to open. So stay tuned to our socials and log into thestokefactory.com to get the latest news.
The Stoke Factory is actively raising funds for this project.
Please contact [email protected] or call Jim Habig directly at 949-444-1281 to inquire and GET STOKED!!!
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