The Rise of Man-Made Surf Infrastructure

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Introduction

There are few sports more aspirational – but less accessible – than surfing.

The World Surf League estimates there are about 120 million surf fans worldwide, yet only ~35 million actively participate in the sport. Becoming a surfer traditionally requires access to coastal areas with rideable waves and the time to chase them, plus deep knowledge of swell and wind patterns and the fitness to paddle out. Finally—and often most dauntingly—one must earn acceptance in the local surf lineup, the crowded zone in the water where waves are contested and dominated by experienced locals, leaving newcomers fighting for scraps.

These high barriers have kept millions of aspiring surfers – who dream of cruising down the face of a wave, then enjoying après-surf beers and tacos with friends – on the sidelines. And with them billions of dollars in adjacent business opportunities, including real estate, have remained untapped.

But recent breakthroughs in man-made wave-generating technologies are changing the game. Advances in wave pool design and performance now make it possible to deliver an authentic, energy-efficient surf experience and lifestyle to people hundreds of miles inland — essentially creating an “inland coastal” lifestyle akin to iconic surf towns like Oahu’s North Shore and Australia's Gold Coast.

While the wave parks alone are driving mid-to-high-teens unlevered yields, man-made “beach towns” in Brazil have lifted the value of remote residential lots from $70K to $700K. And in the US, they’re driving $1 million membership fees to access the beach, waves and amenities.

“The big uncertainties around surfing lagoons have been proven. The tech turns on every day; the lagoons are safe; and since 2019, we’ve shown that the market will pay for consistently perfect waves at a price that delivers attractive returns,” said Andrew Ross, Founder & Executive Chairment of URBNSURF and now Partner and Chief Development Officer at Aventuur. “Now, it’s about enhancing yields through strong operations and strategic real estate–alongside the right capital partners.”

Given the return profiles and the large check sizes required, institutional capital has taken notice and is beginning to invest in surf parks in both the US and abroad. Sculptor has partnered with Discovery Land on Austin Surf Club, Sullivan Street with The Wave Bristol, and BTG Pactual with KSM on Beyond the Club.

And with more private equity real estate firms, experiential REITs, and infrastructure investors digging in, surf-anchored development is increasingly seen as a new frontier for yield, placemaking, and long-term demand.

This week’s Buy Box letter breaks down:

• The business models of master-planned, surf-anchored developments

• Public vs. private surf park economics

• Profiles of five developers pioneering this new asset class

• The Buy Box – an illustrative assessment of investment opportunities

• Case studies of high-performing surf park destinations

• How to invest in this emerging sector

The Business Models of Master-Planned, Surf-Anchored Developments

First, let’s discuss what this asset class is not.

Surfing lagoons are not children’s water parks. While children and non-surfers can enjoy the sand and water like they would at any other beach experience, the lagoon is specifically designed for the sport of surfing.

Surfing lagoons are no longer cost centers. Man-made surf technology has evolved rapidly over the past decade, fundamentally changing park economics. Kelly Slater’s Surf Ranch (seen in the photo below) was an early man-made model–and has been a mecca for surfers for many years–but produces just one wave every few minutes, limiting hourly use to ~4 surfers and making it expensive to operate and maintain (and not visually attractive to anyone but surfers).

Now contrast this to Wavegarden, which can generate up to 1,000 waves per hour across multiple zones, accommodate 80–90 surfers at once, and support 150,000+ sessions per year — making it a far more scalable, revenue-efficient platform for surf parks (and is beautifully designed).

Instead the surfing lagoons and the surrounding experiences are beautifully designed, highly profitable inland “coastal” destinations, where the lagoons are profitable as a standalone asset but–more importantly–serve as an anchor amenity boosting surrounding land value and development.

The pioneering developers of these large-scale, surf-anchored real estate developments follow a general playbook:

• Land Acquisition: Secure a sizable site (often 40–100+ acres) in a tier one or attractive market — enough land to host a large surfing lagoon and surrounding development. The land itself appreciates significantly once a surf park is in place, due to the surf amenity’s high demand and cachet, which is typically a “1 of 1” in the market.

• Entitlement & Anchor Construction: Obtain entitlements and build a surfing lagoon as the “experiential anchor” amenity. The surfing lagoon, with its beach and waves, creates a unique draw — much like ski slopes in mountain resorts or golf courses in country clubs. It combines aspirational appeal with long-term demand, giving investors access to a growing lifestyle market that has yet to be fully tapped. Note most developers to date have been successful selling local communities on the benefits of these projects, making permitting fairly straightforward.

• Vertical Development: Sell parcels or form joint ventures for complementary uses — residential neighborhoods, hotels, retail villages, restaurants, and other recreational amenities. The surfing lagoon transforms the surrounding area into a lifestyle hub, driving property value appreciation.

• Dual Revenue Streams: Benefit from both operating revenue (the surf facility and related services) and real estate sales/leases (homes, condos, commercial spaces). This OpCo/PropCo structure enhances overall yield and long-term value creation, much like the golf course communities of the past.

Depending on the market & location, surf parks are following into two distinct business models: public-access parks, which focus on high-volume, affordable access, and private clubs, which cater to a wealthier demographic with membership-driven revenue models.

Model 1. Public-Access Surf Parks

These are high-volume venues designed for the general public. Visitors book surf sessions by the hour (typically $60–$100), and parks often include additional amenities like skate areas, cafés, wellness studios, and retail shops. URBNSURF (Melbourne and Sydney) and The Wave (Bristol, UK) are leading examples.

The goal is to maximize session throughput and build a loyal customer base of local surfers, weekend travelers, and beginners seeking lessons. These parks often see 150,000+ annual sessions (with models like Aventuur’s Jacksonville project targeting 200k+), with diversified revenue from food & beverage, merchandise, rentals, and even events like surf competitions or yoga retreats, attracting the non-surfing consumer.

The Wave in Bristol proved that even a mid-sized, rainy city with a population of 750,000 could sustain a year-round surf park, achieving double digit unlevered yields, strong operating margins and over 150,000 annual visits.

Model 2. Private Club Surf Parks

Private clubs flip the model: they generate the majority of their revenue upfront via membership sales, often in conjunction with real estate offerings. These clubs offer a premium, exclusive experience. Session bookings are uncrowded, amenities include full-service hospitality and wellness programs, and members pay significant initiation and annual fees.

Oscar Segall’s Praia da Grama project in Brazil is a standout case. Initially selling 1,000 memberships at ~$100,000 each, the project created a tropical beach setting an hour outside São Paulo — and dramatically boosted surrounding real estate values. Lots that once sold for $70,000 were reselling at $700,000 once the beach and surfing lagoon were operational.

Segall’s follow-up project, Beyond the Club, is selling 3,000 memberships at ~$150,000 each, with 60% sold pre-opening ($400M on a blended basis). Discovery Land Company’s Austin Surf Club has reported similar numbers — select lifetime members have paid ~$1 million for founding access.

The Technologies Powering the Models

Similar to picking a hotel flag, the wave-generating technology behind a surf park is what makes or breaks the business model — it’s the engine that drives user experience, revenue, and returns. For developers and investors, it comes down to five core factors: wave quality, reliability, capacity (how many surfers per hour), build cost, and ease of adapting the experience for different skill levels. The market today features a handful of technologies, each with a distinct fit depending on the type of project.

Wavegarden Cove is the only proven, commercially viable, wave-generating tech capable of emulating an ocean-like surf experience — operating in parks like URBNSURF and The Wave — and it’s the go-to for scalable, high-throughput parks. It can handle up to 1,000 ocean-like waves an hour and 80–90 surfers at once, with a compact footprint and near-constant uptime. Note Wavegarden facilities now have 5-years worth of operating data with Melbourne and Bristol opening in 2019 (nine operating facilities total)–and they are the only company with a test facility.

On the other end of the spectrum is Kelly Slater Wave Co., which delivers the most elite surfing wave — but only for one surfer every few minutes, requiring $50–100M and a significant amount of land to build. Kelly Slater combines luxury branding with limited capacity — think Formula One, not Six Flags.

Technologies like PerfectSwell (used at Waco Surf) offer programmable wave variety and viral appeal, ideal for high-performance parks with a niche audience. SurfLoch and Endless Surf are newer entrants focused on sustainability and flexibility, but they’re still proving themselves at scale. Ultimately, smart developers don’t just pick a wave — they match the tech to the thesis.

Five Developers Pioneering Surf-Anchored Developments

The wave park opportunity is no longer theoretical — it’s being executed by an emerging class of developers and backed by a mix of family offices, private equity, impact funds, and institutional investors.

Editor’s note: For any investors interested in developer introductions, contact Paul Stanton ([email protected]) or Brad Hargreaves ([email protected]) and we’ll be happy to connect you.

Aventuur (USA / Australia / New Zealand)

• Wave Tech: Wavegarden (exclusive rights in 9 North American markets)

• Aventuur Partners: Nick Edelman, Richard Duff & Andy Ross

• Model: Master developer (OpCo/PropCo) + JV verticals

• Pipeline: Jacksonville FL, Perth AUS, Auckland NZ, Dallas, Austin, Vegas

• Capital Raised: $15M seed; closing on $35M for Jacksonville location; raising +$100mm for next locations in Texas, Las Vegas and other core markets

• Investor Base: Strategic real estate families, impact capital, celebrity LPs

Aventuur is a surf park developer with exclusive rights to Wavegarden Cove tech in nine key North American markets — including Austin, Dallas, Phoenix, and Las Vegas — as well as Australia, New Zealand, and Singapore. Founded in 2019 by a team with URBNSURF and real estate experience, the company plans to build a global portfolio of surf-anchored mixed-use destinations, each featuring a ~5.5-acre lagoon surrounded by hotels, residential, and wellness components.

Each project is estimated to cost $50–100M in total, with a pipeline that could surpass $1B in total value. Aventuur raised $15M from family offices and HNWIs and is currently seeking $100M+ to fund U.S. projects. Their model: develop and own the lagoon (OpCo/PropCo), while partnering with local developers for vertical buildout. Projects underway include sites in Jacksonville, Perth (groundbreaking 2025), and Auckland (infrastructure active).

Backed by a mix of strategic family offices, impact funds, and celebrities, Aventuur aims to become the global platform operator. The main challenge is executing across diverse markets, but with early-mover advantage and strong positioning, they’re a key player to watch.

Discovery Land Company (USA) + Modon Properties (UAE)

• Wave Tech: Kelly Slater Wave Co

• Projects: Austin Surf Club, Surf Abu Dhabi

• Model: Ultra-luxury private communities with residential and wellness

• Backers: Sculptor Capital, Abu Dhabi Government

• Memberships: Lifetime access up to $1M per member

Discovery Land Company (DLC), known for luxury private communities, is embracing surf through partnerships with Kelly Slater Wave Co and the World Surf League. DLC is developing Austin Surf Club, a high-end community on the former NLand site featuring two wave pools (including a Surf Ranch), ~140 luxury condos, wellness amenities, and club memberships reportedly priced from $300K to nearly $1M. Sculptor Capital is a major investor, signaling institutional confidence.

Modon is also developing Surf Abu Dhabi as part of a $10B government-backed sports complex. The site will feature the world’s largest Surf Ranch, high-end F&B, and host WSL competitions starting in 2025.

For DLC, surf is the new golf — an exclusive amenity to drive home sales and memberships. With $20M+ homes in its portfolio and a strong HNW client base, DLC is well-positioned to scale this model globally. By splitting operations (OpCo) and real estate (PropCo), they monetize both upfront sales and recurring dues. If Austin sells as expected and Surf Abu Dhabi performs, expect more surf-centric luxury communities to follow.

KSM Realty (Brazil)

• Wave Tech: Wavegarden

• Projects: Praia da Grama, Beyond the Club

• Founder: Oscar Segall

• Backers: BTG Pactual, Gabriel Medina

• Performance: 2–3x land uplift; 60% pre-sold memberships in Beyond

• Model: Inland coastal lifestyle meets luxury family sports club

Brazil’s KSM Realty, led by Oscar Segall, is pioneering surf-anchored communities in South America. After launching Praia da Grama, KSM is now developing Beyond The Club — a ~$190–200M surf and lifestyle club outside São Paulo featuring the world’s largest Wavegarden Cove lagoon (62 modules), plus a beach club, restaurants, sports courts, and skatepark. About 3,000 family memberships were offered at ~$125K each, nearly half of which were reserved by early 2025.

Backed by BTG Pactual and surf icon Gabriel Medina, KSM blends destination resort with exclusive urban club. Their model proves luxury surf amenities can thrive in emerging markets with large, inland populations and surf culture. Beyond São Paulo, KSM is exploring expansion across Brazil and Latin America. Their success highlights how building a private “beach” can dramatically raise land values — a playbook with global relevance for similar markets.

URBNSURF (Australia)

• Wave Tech: Wavegarden

• Projects: Melbourne, Sydney

• Model: Public-access surf parks with community and tourism focus

• Sessions: 190,000+ (Melbourne); Sydney opened in 2024

• Capital: Private + strategic tourism investors; refinanced in 2023

URBNSURF launched Australia’s first surf park in Melbourne in 2020, delivering ~190K sessions in year one and proving strong demand. Founded by former banker Andrew Ross (now with Aventuur), the company secured early rights to Wavegarden tech and raised capital from private and tourism-focused investors. Its second park, URBNSURF Sydney, opened in 2024.

URBNSURF targets public access parks with a premium experience — offering memberships, hosting events, and partnering with popular restaurants like Three Blue Ducks. The company refinanced in 2023 to support Sydney’s build and could pursue larger-scale funding or partnerships as it scales. With two parks operational, it’s positioned to leverage brand equity, economies of scale, and local goodwill, making it a potential consolidation target or growth platform for regional surf park investment.

The Wave (UK)

• Wave Tech: Technology agnostic with Wavegarden in Bristol but Endless Surf for London

• Projects: Bristol (operating), London (planning stages), more in pipeline

• Founder: Nick Hounsfield

• Mission: Creating a happier & healthier world with every Wave. Wanting to ensure people of all ages, backgrounds and abilities have the chance to experience the joy of waves and water. A focus on inclusive, adaptive surfing; regenerative development

• Capital: Sullivan Street Partners + private partnerships

• Visitors: 150,000+ annual sessions despite cold climate

The Wave in the UK, founded by Nick Hounsfield, has emerged as Europe’s leading mission-driven surf park company. After proving the model in Bristol, it has embarked upon expansion projects, including a major upcoming project in London, and is looking to secure funding from impact investors, finance, government funds and private equity to expand. This blend of capital shows how surf parks can align with public health, sport, and community goals to unlock unique funding and land opportunities.

As The Wave scales, it increasingly resembles a real estate operating company, with operations and development teams in place. Its success could influence future urban surf projects across Europe, with developments already underway in Paris, Munich, and Madrid. Meanwhile, other entrants like Surf Parks Australia, Surf Lakes, and major mall operators are exploring surf attractions, but The Wave and a few others have built real operating track records — making them leading candidates for future investment and partnerships.

The Buy Box

Below is an illustrative “buy box” of a surf-anchored development through the lens of an institutional investment partner.

Case Studies of Existing Projects

Lastly, let’s look at real-world surf destinations that are already operating — and in many cases, significantly outperforming investor expectations.

URBNSURF (Melbourne & Sydney, Australia)

• Model: Public-access

• Technology: Wavegarden Cove

• Key Stats: 190,000+ surf sessions in year 1; 300,000+ visits in first 5 years

• Expansion: Sydney Olympic Park (opened 2024), $75M AUD development

• Returns: Strong operating margins and high repeat visitation

URBNSURF Melbourne, Australia’s first commercial surf park, opened in January 2020 and quickly proved demand, delivering 190,000+ sessions in year one and 300,000+ visits over five years. High throughput (up to 84 surfers/hour) supported strong margins.

Building on that success, URBNSURF opened a 3.6-hectare park in Sydney’s Olympic Park in 2024, a A$75 million project with expanded hospitality. Their public pay-per-surf model — with surf academies, events, and “surfyoga” — has made URBNSURF a template for urban surf parks. Melbourne reportedly achieved 40% EBITDA margins, and the company recently refinanced to fuel expansion.

Waco Surf (Texas, USA)

• Model: Public-access with high-performance positioning

• Technology: American Wave Machines (PerfectSwell)

• Highlights: Famous “air section” draws elite surfers; sessions sold by wave or hour

• Volume: Tens of thousands of annual visitors; also includes water park and lodging

Waco has become a global surf destination thanks to Waco Surf, a public park in rural Texas featuring American Wave Machines’ tech, capable of producing 120 waves per hour — including “Waco wedges” for aerial tricks. Sessions cost ~$90–$150/hour, with per-wave options, and the site includes cabins, a lazy river, and a water park. Once the most attended surf park in the U.S., it drew pros and families alike. Though exact visitor numbers aren’t public, estimates suggest 50,000–100,000+ annually. Waco proved that great waves — plus viral content — can make even non-coastal locations profitable.

Palm Springs Surf Club (California, USA)

• Model: Public-access + resort

• Technology: SurfLoch

• Notables: Retrofit of an old waterpark; surf + lazy river + restaurants + bars

• Opened: January 2024

• Positioning: “Surf resort meets desert luxury”

Palm Springs Surf Club (PSSC) soft-opened in January 2024 on the site of a former waterpark, retrofitted with SurfLoch’s pneumatic wave tech. Backed by investors like tech entrepreneur Vinny Smith, PSSC blends surf with entertainment across a 21-acre property featuring waves, a lazy river, pools, cabanas, bars, and a surf museum. The wave basin hosts up to 25 surfers with customizable waves, and access is public, with sessions starting around $100. The project showcases adaptive reuse: repurposing a defunct waterpark saved costs and leveraged existing zoning. If successful, it could spark a broader trend of converting underused recreational sites into surf destinations.

Praia da Grama (São Paulo, Brazil)

• Model: Private club

• Technology: Wavegarden Cove

• Results: 1,000 memberships at ~$100k each; lots increased from $70K → $700K

• Returns: Mid-teens IRRs for investors; 2–3x land appreciation

• Impact: First large-scale inland beach lifestyle destination in Brazil

Opened in 2021, Praia da Grama became Brazil’s first surf park and a flagship for the private club model. Built by KSM Realty within the upscale Fazenda da Grama resort near São Paulo, land values near the Wavegarden Cove lagoon jumped from ~$60/m² to $500/m², driven by demand for the inland beach lifestyle. The project’s success led to a larger follow-up, Beyond the Club, and drew backing from BTG Pactual and surf icon Gabriel Medina.

The Wave (Bristol, UK)

• Model: Public-access

• Technology: Wavegarden Cove

• Users: 150,000+ annual sessions; year-round ops despite cold weather

• ESG Focus: Strong social mission, adaptive surf programs, renewable energy

• Expansion: London site in planning process; more parks in UK/Ireland pipeline

Opened in 2019, The Wave in Bristol is a public access surf park with a social mission built around inclusivity and wellness. Using Wavegarden Cove tech, it operates year-round despite the UK’s cold climate and draws ~150,000 annual visits, including adaptive surfers, school groups, and NHS workers. Its potential alongside programs for mental health and community access helped it attract investment to support its London expansion. With more UK locations planned, The Wave aims to become the first multi-technology surf brand.

WSL Surf Ranch (Lemoore, CA, USA)

• Model: Private, event-based and ultra-premium rental

• Technology: Kelly Slater Wave Co (hydrofoil-driven linear pool)

• Throughput: Extremely low (1 wave every 3–5 minutes; 10–12 surfers/day)

• Use Cases: WSL competition venue, R&D lab, luxury brand asset

• Notables: Hosts Surf Ranch Pro; inspires high-end developments like Austin Surf Club

Launched in 2015 by Kelly Slater and the World Surf League, Surf Ranch produces one of the world’s longest and most perfect artificial waves — but with very limited capacity. Though not a public park, it operates as a competition stage, training facility, and exclusive experience. Private rentals can cost $50-90K per day, and it has hosted elite events like the Surf Ranch Pro. While not commercially scalable, Surf Ranch set the bar for artificial wave quality and serves as a media engine and luxury model that has influenced projects like Discovery Land’s surf-focused communities.

What’s Next: How to Get Involved in this Emerging Sector

Want to explore the investment opportunities surf parks present? Join our upcoming investor webinar, “Surf Parks as an Asset Class: Inside the Buy Box,” on May 15th at 11am EDT, where leading developers and backers will share insights on current deals, development models, and growth strategies. Register here.

Ready to dive deeper? Thesis Driven can facilitate introductions to developers actively raising capital—whether you’re interested in equity, debt, or venture exposure. Reach out and we’ll connect you to relevant projects or platforms.

As always, we’ll continue tracking this sector and sharing updates on performance and new opportunities.

Thesis Driven’ Buy Box is a media platform and community connecting accredited investors with actionable insights and deals in emerging real estate niches. For more information on any opportunities mentioned or to discuss the above content, please contact the authors.