Pinnacle Yachts In the News

"The New Alternative to Yacht Ownership"
by Mary Choi Smith, The Pointer, February, 2004

It’s been said that the two best days in a man’s life are when he first buys his boat, and when he sells his boat. Even the most passionate sailors get a chuckle out of this because just about anyone who has owned a boat eventually reaches three unassailable conclusions: 1) “I use my boat far less than I thought I would,” 2) “I spend as much time working on my boat as I do sailing it,” and 3) “my hole-the-water-into-which-I-throw-money is often more like a twisted waterspout that draws money from me without regard.”

Yet yachties new and old agree that are few things in life that offer such great pleasure, and they cherish the time shared on their boats with the family and friends they call “crew”.

Enter Pinnacle Yachts, a unique sailing timeshare company that enables sailors to make personal use of a fabulous new yacht without the cost or hassles of owning. Rather than traveling to some distant location for a week to lease a boat, Pinnacle members sail their personal timeshare yacht in the wonderful waterways near their home, and have access to the yacht across the entire season. With a dozen gleaming new Jeanneau 37ft sailboats in its fleet, and bases in Chicago, Detroit and others cities soon to be announced, Pinnacle Yachts is the largest and most successful yachting timeshare of its kind.

“The boats are great;” said Mark Carlson, president of a real estate development company and long time member in the Pinnacle program “they’re fast and extremely well appointed, with beautiful interiors and huge cockpits.” Most yachts in the fleet are equipped with in-mast furling mainsails, autopilot, color cartographic GPS, full wind instrumentation, and upgraded teak interiors. Their sleek styling is fitting given their brisk sailing capabilities.

Here’s how the program works. Members enter into a single-season lease on one of the yachts in the Pinnacle fleet. For the all-inclusive price of about $4,500, each member has the exclusive use of his or her personal yacht for twenty-two “timeslots”. Timeslots are either day slots that run from 9:00 am to 5:00 pm, or evening slots that run from 5:00 pm, overnight, until 9:00 am the following morning. Each skipper receives the twenty-two timeslots across the twenty week sailing season, about half of which are scheduled as day slots and the other as evening slots, with nine scheduled on weekends and the balance on weekdays.

While maintaining this overall allocation, Pinnacle applies sophisticated proprietary scheduling technology to custom build a schedule for each skipper that takes into account vacations, special occasions such as anniversaries and birthdays, and city events like the 3rd of July fireworks, Venetian Night, and the Air & Water Show. Pinnacle also has an extensive web site for use by its skippers, which includes a simple-to-use schedule management system that allows skippers to view their schedule and easily trade timeslots with one another as the season progresses.

“Pinnacle has invested substantially to develop advanced software tools that allow us to produce truly personalized schedules for our skippers,” said Patti Feracota, President of Pinnacle Yachts. “Also, our web-based system for use by our skippers makes schedule management and swapping quick and easy.”

Pinnacle is also meticulous about maintaining its yachts. It has a staff that tends to all ongoing preventive and emergency maintenance, keeping the yachts in Bristol condition. “Pinnacle skippers spend their time sailing yachts – not fixing them,” said Patti Feracota. Pinnacle provides great maintenance in part to ensure their skippers’ smooth sailing, but also to protect their investment. Unlike the many bareboat companies in the Caribbean who act as agents to lease boats owned by private parties, Pinnacle owns all of its yachts itself, providing extra special motivation to see that the boats are well maintained.

“This is a great thing for people who love to sail but don’t have the time to deal with the hassles,” said skipper Mark Carlson. “We simply show up to the boat, it’s clean and ready to go, and when we’re done, we cleanup after ourselves, and we’re on to the other things in our lives.”

Most skippers come to the program with sailing experience, but about 25% choose to obtain some level of additional training aboard their yacht. Pinnacle offers fundamental lessons for true beginners, and accelerated lessons for sailors with experience that is somewhat dated or is on smaller vessels. “The Pinnacle program is very practical in that lessons are held on the actual yacht the skipper will sail in the Pinnacle fleet, and about 30% of the time is spent learning about sailing in local waters.” said Randall Smith, principal sailing instructor of Randall Smith Sailing, the contractor for sailing lessons on Pinnacle boats. Pricing for instruction is also a bargain, especially if the skipper’s spouse, adult child or good buddy attends (now referred to as “first mate”) – just $500 for the skipper alone or $750 for both skipper and one crew for five, three-hour, on-the-water sessions.

Skippers in the program are an active, middle-aged, affluent sort. The average age in the program two years ago was 52 and last year 48. Many have multiple leisure interests, and while they can afford the cash for them, time has become the most precious resource. Patti Feracota believes “Most skippers in the program can certainly afford their own yacht, but choose not to do so as a matter of convenience and camaraderie more so than for financial reasons.” However, anyone can appreciate the economics of the arrangement. According to analysis provided on the Pinnacle web site, the typical sailor who uses their yacht about 15 times a season would spend 12-times less during the first year, and 5-times less during subsequent years, for comparable use of the same boat if they owned it themselves.

Interestingly, when skippers first come to the program, they often say that they intend to stay in the program for a year or so, and then purchase their own boat. “Since 1998 when we started Pinnacle, with more than 100 people having now been in the program, we have seen only one skipper actually leave to purchase their own boat,” said Patti Feracota, “and he tells us that we should hold a spot for him because after owning a boat once again, he may be coming back.”

The Pinnacle Yachts timeshare program has been a great success. Indeed most of their yachts are already sold-out for the 2004 season. For more information, visit the Pinnacle web site at www.pinnacleyachts.com, or call the company at (800) 285-7495.

"The Magic of Flying On The Water"
by Bradley A. Draper, August 2nd, 2003

Sailing is something I never thought about much. It has all that history, literature, mystique, and romance going for it, but with the advent of powered boats, I figured - why? Well, last week, I had the opportunity to find out why. And I have been enlightened by the magic of flying on the water.

Three buddies and I traveled north to the great City of Chicago for an adventure, invited by another buddy, our Captain, to take a ride on his newly time shared 34 foot Jeanneu Sun Odyssey sailing yacht. Knowing nothing of sailing, I had no idea what was in store - nor did my hapless shipmates. I had purchased a book on the subject, so that I could understand the unique terms of sailing, but later, I realized that like so many things, to do is to learn. We went thinking we were going to ply the waters on a pontoon boat, loaded with beer and chips, with the expectations of a casual Jimmy Buffet affair. But we were in for an exhilarating, sometimes uncomfortable, and at times, a little scary experience. And as crew, we found we had to work for our passage.

Picking up our Captain, we drove to Grant Park and approached Monroe Harbor on the vast body of water called Lake Michigan. The sky was overcast, the wind cool from the north at a strong steady 18 knots, and the white caps were licking the air with a snap. The Great Lakes are not really lakes at all. They are fresh water vast inland seas. As such, they behave and affect the weather like mini-oceans. These are powerful waters not to be trifled with, and today those waters look anything but sedate. But the harbor master has not signaled a sailor’s warning, and I trust my Captain, so it is aye aye sir, let's ship off! To get to the boat's mooring, you must take a City of Chicago harbor tender, piloted by friendly ladies who have done their maneuver of dispatching sailors a million times, practiced and efficient.

Christened the "Wondrous Stories" she is a single masted sloop, beautifully crafted in France, with main sail and a Genoa jib all trimmed in chrome and teak. Below it has all the amenities of a fancy motor home. We are now on the beautiful vessel and I admire her lines, and I know why they call boats "she." She is gleaming white, svelte and sexy, yet business like with a solid feel that tames the calm waters of the little harbor. I feel more confidant. Our Captain shows us the ropes, reads us the rules of nautica, breaks out the life jackets, shows us the radio calmly telling us that channel 16 is the Coast Guard in case he becomes disabled. We learn how to start the motor just in case, we learn how to steer, and how to use the head.

We let off the mooring and then motor from the harbor a sufficient distance to rig the sails. I am charged at the tiller with keeping the boat into the wind while the crew and skipper hoist and trim the sales. I do a miserable job in the high winds and even before the sails are set, we are going in circles. Power is added to the motor and I do better, up goes the mainsail, then the jib is unfurled. With some difficulty because of the high winds, the mainsail Is trimmed Finally we are underway to the surreal strain (who brought that CD? - of course the boat has outdoor Bose speakers!) of the Monty Norman's 007 theme from the James Bond movies - da dadada da da da - da dadada da da da. What a bunch of schmucks.

The skipper let's me continue at the helm once he has the boat going in a port tack, but again, I have us in the lurch floundering in the no sail zone. I realize that sailing into the wind, tacking, is an art form. Our Captain at the wheel again, we begin to fly and I notice something curious. The wind is hitting me in the face as I look forward, but we are sailing at an angle to the breeze, and the phenomenon of "tacking" becomes suddenly clear as the Captain explains that the sails are acting as wings, the curve of the sail creates lift, and the keel underneath the boat keeps us from sliding sideways to the leeward through the water. Although I had read all about it, to see and feel this effect blazed an understanding in my addled brain and I began to think as a sailor might.

Suddenly the sun has burnt the haze away and I look up the mast following the high side of the triangle called the leech side of the sail, and yes, I am truly flying. A thrill goes through me and goose bumps attack my arms. The sun peaks through the rigging of the sail, and I am in awe of how we are conquering the wind and water with simple canvas and rope. But now we must change direction to keep our heading, and we move the jib to tack towards the starboard (to the right). Moving the jib by the crew creates a hang up, I take the helm again as the skipper undoes the fouled rig. Finally we are back underway, except now the wind is on the other side of my face as we head into it. On occasion we really pitch over, then the boat rolls, listing at a 30 degree angle. It is exciting! Everybody has to hang on to something. I suddenly realize that none of us have put our life jackets on. Oh well - as the poet Bussho wrote: "You only live twice; Once when you are born, and once when you look death In the face." Next time I sail I won't forget to wear protection!

Spray comes over the boat as we really hit the waves. Everybody feels the rocking of the deck, and the confusion of the inner ear with what the eye is seeing as the seas are very choppy and rough. After a half hour or so of not so smooth sailing, our skipper takes mercy on his crew and decides to come about and head home. He plots a course, and we turn, the sails at first protesting, flapping aimlessly, but then, the wind fills the canvas, and we ply the waves as Columbus did, with the prevailing breeze.

We are now jibbing downwind in what is called a beam (right angle to the wind) then broad (with the wind more directly behind us) reach, at various angles, to control our course. We are picking up speed fast and the Captain estimates we are making 13 knots. I stand and grab the cable that helps stabilize the mast, called the shroud. We are heading back to harbor and there it is. We are flying into it in a rolling pitching motion. The City with big shoulders, Chicago. What a skyline, how magnificent! We are soaring right into it and it seems as if we will fly straight through the skyscrapers. Veritgo takes over watching the land come near, for the boat is not moving, the buildings are. I turn away from looking at the city, scan the water's horizon. This works and I feel anchored again.

We speed up to the point just beyond the harbor where we must strike the sails. Again I take the helm as the skipper and his newly appointed first mate take care of this chore. I give up the con to our Captain, and we motor towards our appointed mooring. The first mate and I secure the lines. I feel so alive, but there is a problem, my knees are weak from the excitement of the cruise. My sea legs are completely gone, but I hold on until the boat is secured, and then the tender with the sympathetic lady pilot comes.

We are back on land, and a curious thing comes over me. As apprehensive as I sometimes felt at sea, I want to go back. I want feel the spray, the pitch and roll, hear the water slap the hull, the canvas flapping as we stall the sails, and the humming of the wind through the rigging. I want to skim the waves again. I want to feel the wind in my face as we somehow impossibly sail into it. I want to go fast with the zephyr at my back and feel the wind in my hair. I want to heel over and once again feel the terror that the boat may capsize as I hike in panic. It is like a roller coaster ride only far far better.

The sensations, the activity of sailing, the white capped waters, and the sun glistening on the deck does something to you, and I understand completely now, the magic of flying on the water, because for two wonderful hours I felt elemental and alive. Many thanks go out to the Captain of the "Wondrous Stories" for giving me this thrill ride!

Am I ready to ship out again? The words of Melville answer; "And thou ayest sign the papers right off," he added, "come along with ye." - Peleg to Ishmael upon shipping with the Pequod. Yes Captain!

"Fractional Fascination"
by Jennifer Martin, Crain’s Chicago Business, January 13th, 2003

Entrepreneurs are taking the fractional ownership model to other luxury Assets. Consumers can own a share in a classic car or yacht for a sliver of the full purchase price.

… Pinnacle Yachts in River Forest lets clients lease time on a luxury yacht for an annual fee starting at $3,350. Buyers can take 22 eight-hour trips during the sailing season, May 15 to Oct 15.

Clients don’t own a partial title to the craft; they’re strictly paying for time. But the lack of return on the investment doesn’t seem to bother them says company co-founder Gary J. Feracota.

“In the five seasons we’ve done this, we’ve had only one (client) leave the program to actually buy their own boat,” Mr. Feracota says.

Currently, about 70 people, mostly affluent professionals, in their 40s and 50s, have signed up. They’re avid travelers who crave freedom from maintenance and storage responsibilities, Mr. Feracota says.

“These are people who do a lot of business entertaining,” he adds. “I don’t have statistics to really support this, but my guess is, at least half the fees find their way back into business expense accounts.”

“Timeshare Boats”
Sailing Magazine, October 2002

Boat ownership is great, until you have to haul the boat, winterize it, launch it in spring, change the oil and fix all the other little things than tend to come up. Forty-one sailors in Chicago have figured out a way around the down side of ownership. Pinnacle Yachts LeaseShare program has been such a success, the program sold-out last season. In it, the owners share use of one of four Jeanneaus – two 37s, a 34 and a 36. Two more boats will be added next year.

Each captain is entitled to 24, eight-hour sails during the 20-week sailing season, and are able to schedule time for special events or days. They also trade time slots among themselves and can arrange for extended sailing times for minicruises.

The best part of the program may be the cost -- the program starts at $2,950 for the season.