The Pellucid Perspective - March 2021 - 16

COMINGS
& GOINGS

Activity picks up, no public domain closures!?

L

ooking at the public domain, tracked activities since our
last issue, February was the month of transactions as they
dominate our collection with 12 of the 17 activities. Also
of note is the fact that there was not a single closure reported
among the multiple sources we scan; let's see if that's a trend or
an anomaly.
Let's start with the good news of a brand-new (not a reopening) facility in Phoenix AZ with Sterling Grove Golf +
Country Club as Toll Brothers returns to the golf-centric,
planned community model that was part of the supply boom
(and ultimately fueled some part of the bust). It's time to dip
the toe back in the water and they're starting in Phoenix with
the course being managed by Troon as public-access initially
with a plan to go private when the development and local membership will support it.
Among transactions and sales, there's quite a variety of stories to choose from. We had an international buyer in Hankuk expanding their US portfolio/partnership with Century
Golf Partners, we had municipalities agreeing to buy/leaseback
courses to prevent future development, we had a recapitalization and successful exit transaction and the garden variety of

" putting it up for sale, I'm either retiring or tire of it " listings.
The Glenwood Country Club redevelopment one is a curious story, it appears that a local developer is buying the current
course and land, reconfiguring things and making a new 18 hole
layout plus mini-golf plus pitch-and-putt all on the same former footprint at an estimated $8M investment. The city seems
to be over-the-moon on this but I can't seem to figure out how
the developer gets their $8M back in any reasonable time but
they are developing new assets & amenities so maybe that's the
quid-pro-quo. Once again, the city's rationale is a defensive
posture that it prevents the land from being used for residential
or commercial development into the future and they get more
tax dollars out of this arrangement than they would out of housing or offices?
On the surface, it does appear that COVID has made some
number of on-the-bubble facility owners reconsider their exist
strategy (i.e. stay a while longer); we'll see after the dust settles
and we're post-pandemic in 2nd half '21 whether the " new normal " will give them the cushion they need to make deferred
CapEx and stay above water or whether '20-'21 was simply a
stay-of-execution.

Golf's landscape changes
Event

Course

DMA

Type/Holes

Summary

Open/Re-open

Sterling Grove
G+CC

Phoenix AZ

Pub/18

New course, part of Toll Bros. master planned
community, operated by Troon, plan to go private
at build-out

Covered Bridge
Golf Club

Louisville KY

Pub/18

Fuzzy Zoeller hometown opus, needs a new buyer
and some local love...

Innsbrook
Country Club

Chicago IL

Priv/18

Listed for Sale, reported by local media

The Legacy Golf
Club

Phoenix AZ

Pub/18

Sold by Concert Golf Partners to Molson
Properties after 4-yr recapitalization program

Shackamaxon
Golf & Country
Club

New York NY

Priv/18

Purchased by Heritage Golf Group, price not
disclosed (previous sale in '13 was $4.5M)

Race Brook
Country Club

Hartford & New
Haven CT

Priv/27

Wilkshire Golf
Course

Cleveland-Akron Pub/18
(Canton) OH

Congaree Golf
Club

Savannah GA

Bought by City of Orange w/overwhelming
support, leaseback to club members on 40-yr
term; primary objective was preventing future
development; developing (bad pun) trend of
municipalities buying out private clubs or courses
" defensively " , we'll see...
West Creek Conservatory purchase plan scrapped
by locals, " we don't need no stinkin' nature
preserve " , so now again becomes unprofitable
golf asset awaiting disposal (town people " think
someone local should buy it " (yeah, just not them)
Congaree Foundation purchases 9 hole private
club, saves it and makes public; big youth focus
by Congaree, local HS teams play for free

Closed

Transacted/
For Sale

16 The Pellucid Perspective

Pub/9

March 2021
The Pellucid Perspective - March 2021

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