The Pellucid Perspective - September 2021 - 10

COMINGS
& GOINGS
Transactions Continue to Rule,
Closings Pick Up Again
W
hile we're not sure if COVID is providing additional
" grease " to the machine of golf course transactions,
they continue to be the dominant activity in the public
domain for the 3rd consecutive month. We tracked 14 activities
with Transactions/For Sales comprising 9 of them followed by
4 closures (2 will be back but they're out of commission for >12
months so we call them closures for our " scorekeeping " ) and 1
Auction for those of you keeping score at home.
A trend you'll see if you read the Summaries (I know Frank
Rossi does, he likes our satire) is a number of older owners are
" aging out " and either selling, closing or, in two cases, they're
passing one facility down in the family and transacting another
which would seem to provide both family ownership continuity
as well as some cash generation. I can appreciate the fact
that several of those former owners are now in their 90s and
it's just time to dial back and stop running the combination of
a farm, retail store, and restaurant. Most simply wanted, over
Golf's landscape changes
Event
Course
Germantown
Country Club
DMA
Memphis TN
their 40-50 year ownership tenures, to provide a community
gathering place, give something back and gainfully employ a
number of local laborers. Congrats and thanks to Grace Frueh
and W.J. McLamb for apparently achieving that goal as they
" hung up their (soft)spikes " in '21.
The other trend is the inevitable " best and highest use " for
a number of golf properties...isn't golf. While we all want
to protect greenspace and provide recreation and community
through our courses, there continue to be a number of situations
where the financials are just so compelling for real estate
development (either residential or commercial) that over time
money and politics will simply seek their own level. Kudos
to the local activists and community members who have kept
some of that development at bay but, as you'll see in several
of the past months' catalogues here, in most cases it ends up
being some type of political compromise and 'mo money that
carries the day on some number of properties once put in play.
Type/Holes Summary
Pub/18
(Finally) a settled transaction after multiple
attempts. New purchaser is FarmingtonKimbrough
Dev. Group @ $7M; will be
redeveloped. Economics trumps muni interest;
city bid $2.5M but real estate value is $200M+,
lots of headroom for purchase at appraised value
of $7M
Farmstead Golf
Club
Closed
Bamberg
Augusta GA
Pub/18
Wilmington NC Pub/18
Patriarch W.J. McLamb calls it quits on Farmstead,
the only US golf course with a Par 6 hole, selling
to a developer with intent to convert to residential
real estate. Last round on Halloween '21, trick or
treat!
Previously closed ('17) then resurrected by
current owner, DHC Inc. for purchase of $750K
but, after 4 yrs, not even that cost basis was low
enough for this property to make ends meet.
Supports the theory that even some " fire sale "
prices still aren't low enough to save a community
golf resource
Diamond Bar
Los Angeles CA Pub/18
Mid-term close (18 mos.) for highway/
infrastructure construction; during forced closure
they'll make course renovations as well. Planned
re-open '23
Campus
Commons
Golf Course
Transacted/
For Sale
Canaan Country
Club
SacramentoStocktonModesto
CA
Hartford & New
Haven CT
L&P/9
Pub/9
Mid-term close (re-open '24) for Army Corps of
Engineers levee project on American River. Course
will be renovated as well during forced closure of
Sacramento County course
Purchased by local businessman, Joseph
Quattrocchi, new restaurant concept to capture
more golfer $$s, revisiting $177/annual
membership deal that ends @ end '21
10 The Pellucid PersPecTive
September 2021
The Pellucid Perspective - September 2021

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