The Pellucid Perspective - May 2012 - (Page 13)

GOLF COURSE SALES Major golf communities changing hands Cliffs, Reynolds Plantation, Bluegreen Communities going, going and gone By Jim Dunlap s individual golf course properties slowly but surely seek valuation levels sufficiently low to tempt buyers, several major U.S. golf communities are either about to change hands or have recently done so. The high end Cliffs Communities in the Carolinas are now in the majority control of the Houston-based Carlile Group and a number of its investment partners, a buyer is reportedly emerging for the receiver-held Reynolds Plantation community and its six golf courses in Georgia, and Bluegreen Communities and their two remaining golf course properties were purchased in late April by former Bluegreen board member Larry Rutherford and his South Star Development company. With the new home sales market still soft, raw or partially developed land is a sweetener in all three of those sales scenarios that the sellers were glad to (or had to) add. The Bluegreen deal, which closed on April 30, had a published sale price of $29M, of which $24M went to the note-holder on the properties, Hillwood Bank. Rutherford’s buy was reportedly financed by a hedge fund, with the deal including 3,500 acres of raw land, located primarily in Texas. Bluegreen’s two remaining golf course communities in the deal were The Bridges at Preston Crossing north of Dallas and Sanctuary Cove at St. Andrews Sound on St. Simons Island in Georgia. Birmingham, Ala.-based high-rise and residential developer Daniel Corp. is reportedly in the final stages of negotiations to purchase the Reynolds Plantation property, which includes six golf courses, marinas and clubs and thousands of acres of Reynolds family-owned raw land at the huge enclave on Lake Oconee. Reynolds Plantation has been in receivership for nearly a year, after being unable to pay down and extend a large Bank of America line of credit needed to continue operations. If Daniel Corp. does indeed purchase the Reynolds properties, it A SunTx Urbana is also a major Cliffs lot and landowner, while Arendale is a real estate investment and development company with experience in golf course development and operations. The actual ownership of the Cliffs Communities Club and Hospitality Group entity has not been resolved, but it appears likely that the Carlile Group partnership will end up with the portfolio, which they have told Cliffs property holders they intend to continue to develop. One of the unfinished components of the Cliffs portfolio is the Tiger Woods Signature golf course in the High Carolinas development, where construction has been shut down for some time. Some have speculated that the course may never be completed, although that may be premature. If there is a message to these and other large scale transactions, such as Donald Trump’s purchase of Doral, it may be that for those with cash or cash flow, or access to patient money that can afford to wait for the real estate market to turn around, the time – and the price – may be right. n CONDITIONED FOR SUCCESS. The golf landscape in America has changed. In a market overcrowded with golf courses and little prospect for demand to grow significantly, today’s course owners and operators are experiencing extreme competitive pressure in nearly every aspect of their business. Never before has there been more reason to work smarter and more efficiently—or more reason to partner with ValleyCrest Golf Course Maintenance. As the national leader in golf course maintenance contracting, we’re a trusted steward of all manner of golf properties throughout America. If there is a message to these and other large scale transactions, the time – and the price – may be right. would be something of a departure from Daniel’s typical highrise enterprises, although the company does have a high-rise development in relatively nearby Atlanta, and also developed the Greystone community in the Birmingham area which includes a private, Rees Jones-designed golf course. The Carlile Group of Texas, headed by Steve Carlile and his wife, has partnered with SunTx Urbana and Arendale Holdings to purchase more than 70 percent of the platted lots in the bankrupt Cliffs Communities properties in the Carolinas. www.PellucidcorP.com 24151 Ventura Boulevard Calabasas, CA 91302 (888) 406-GOLF www.valleycrest.com Comprehensive Golf Course Maintenance The Pellucid PersPecTive 13 http://www.valleycrest.com http://www.valleycrest.com http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - May 2012

The Pellucid Perspective - May 2012
Table of Contents
New wave of third-party tee time providers surfacing
The Great Contrarian
Endangered species on your course? En garde!
Pace yourself!
Major golf communities changing hands
April weather impact: Yeah baby!
Petroleum industry keeping Houston golf up to speed
KemperSports launches new private club division
Tough times lead Tucson muni’s to consider privatization
Hits and misses for Get Golf Ready special on CBS

The Pellucid Perspective - May 2012