The Pellucid Perspective - November 2023 - 10

COMINGS
& GOINGS
14 activities, Transacts and Renovations/Renames
As
O
ctober activity was generally " sideways " with only 14
items in the public domain sources we monitor.
we've reported previously, there's a noticeable uptick in
" new dirt " being announced but not much of it has made it to
completion/opening which is when we'll pick it up here. Transactions
still top the list of activities but the good health of golf
and the higher interest rate environment are applying some level
of throttling to normal transaction levels. Here's the month's
scorecard
* Opens/Re-opens - 1
* Closeds - 0
* Transactions (continuing golf operations including
For Sales) - 7
* Redevelopments (transactions not continuing as golf
operations) - 0
* Reconfigurations ( Priv-Pub switch, downsize holes,
Priv->Muni ownership etc.) - 1
* Other - 5 (mostly renovations coupled with re-names
but a couple of " distress " cases)
The table provides details and commentary for each activity.
For those not into detail (or our entertaining commentary), the
general storyline is that we appear to be in a period of light and
diverse activity (still more transactions than anything) with no
Golf's landscape changes
Course
Event
Open/Reopen
Closed
Racine Country
Club
Champions Retreat
Golf Club
Transacted/For
Sale/Auction
The Craft Farms
Resort
Mobile AL-Pensacola
(Ft. Walton
Beach) FL
PUB/36
Milwaukee WI
PRIV/18
Scott & Lynn Molitor purchased course where
Scott caddied in high school, purchased from
non-profit; successful local businessman believing
they can operate it efficiently & profitably in
addition to being labor of love
Augusta GA
PRIV/27
Purchased by Arcis Golf from Bill Forrest,
Augusta-area course hosts first two rounds of
Augusta National Women's Amateur in Mar-Apr,
last transacted 12/14 for $6.6M, recent purchase
price not disclosed. Expands Arcis acquisition
list to 14 in past two years through small, multicourse
acquisitions
Scratch, Golf purchases 2 AL fm Honours Golf;
this is 36-hole operation. Scratch Golf has been
in and out of the golf ownership business for
years and across multiple geographies. Sellers
were Honours Golf principals Bob Barrett and
Rob Schultz who kept the courses when rest of
portfolio was sold to Troon in '14
Terra Greens
Golf Club
DMA
Wilkes BarreScranton
PA
strong trend or pattern to report which drives analysts like us nuts
because we like clear trends, patterns and categorizing things.
This month's " general interest " story is the continuing saga
of Moundbuilders Country Club in Newark, OH. Under the
theme of " golf course appraisal is a dark art vs. science, " an initial
appraisal by the country club put the value of the club at ~$22M
(exponentially heavy for an 18-hole private club) while a subsequent
appraisal by the Ohio History Connection for the club
(which sits on the Hopewell Ceremonial Earthworks) puts the
value at ~$2M. A third datapoint according to a WVXU report
cited by the presiding judge notes that the average sale price
of golf courses in OH over the past 2 years was $2.5M (doesn't
make a distinction between public and private and an entire state
as a reference point are two " misses " in the judge's attempt to be
an appraiser). As often is the case, truth is likely somewhere in
the middle as we generally see private clubs going for $2-$4M so
that midpoint would be ~$3M but...definitely not $22M. Now
the debate moves on to yet another appeal and somewhere, in the
future, we'll figure out what the " right price " is and then there's
the battle of whether the club can be compelled to sell the course
for " fair value " as an eminent domain decision. Never a dull moment
in this industry and the battle between private and public
interests as it relates to both transacting golf courses as well as
those operating as ongoing concerns but in unfortunate locations
or inopportune timing.
Type/Holes Summary
PUB/9
Friends for Terra Greens GC does resurrection,
East Stroudsburg county closed in 11/22 due to
cash drain, FfTG raised funds and received lease
fm county to-reopen for '24 season
10 The Pellucid PersPecTive
November 2023
The Pellucid Perspective - November 2023

Table of Contents for the Digital Edition of The Pellucid Perspective - November 2023
