8 Golf Inc. Fall 2014
AROUND THE WORLD
No. 1 Sale prices up
Golf course are selling faster and sale
prices are increasing for the first time
in seven years, according to a report by
Marcus & Millichap’s National Golf &
Resort Properties Group.
The average sales price is up 8.9 percent
from a year ago, and the median price is
up 43 percent to $3.075 million. On top
of that, utilization and revenues are up,
according to Performance Trak.
The positive outlook has fueled recent
deals, including ClubCorp’s acquisition
of Sequoia Golf, and the acquisitions of
American Golf and the CNL portfolio by
Arcis Equity. These transactions increased
the number of sales to unprecedented
levels, the report states. Even without
them, sales volume is up 28 percent.
No. 2 Financing easier to get
Financing availability is also getting
better, according to Marcus & Millichap.
“Increased financing availability and
low interest rates means lower barriers to
entry and higher cash-on-cash returns,”
the report states.
It says many courses are getting
loan quotes between 65 percent and
75 percent loan-to-value, meaning
required payments of only 25 percent
to 35 percent of the purchase price. The
reports concludes that this will lead
to more potential buyers — especially
international investors, master-planned
communities and crossover buyers from
traditional commercial real estate.
No. 3 Kennedy Wilson
enters golf market
Kennedy Wilson Europe Real Estate
acquired Fairmont St Andrews, a golf
resort in Fife, Scotland, for $53.8 million
one month after acquiring Portmarnock
Hotel and Golf Links in Dublin for $39
million. Kennedy Wilson is a Beverly
Hills, Calif.-based real estate investment
company with offices around the globe.
No. 4 Warrior adds 13th
course, moves high end
Warrior Golf Properties acquired its first
high-end property this summer with the
acquisition of Bos Landen Golf Club in
Brendan Flaherty, who is also the
founder and CEO of Warrior Custom
Golf Inc manages the Irvine, Calif.-based
company. It acquired its first course in
2009 and now has 13 properties in its
portfolio. Flaherty has said the company’s
target consumers are value-driven, and
thus Warrior Golf’s first courses fit a
But while the company may have
started with smaller, fixer-upper courses,
Bos Landen cost $15 million to build. It
ran into financial trouble, and the city of
Pella took over the course. The city agreed
to a 99-year lease with Warrior Golf to
operate the golf course and its facilities.
No. 5 KemperSports growth
KemperSports, the sixth largest
management company in the world, keeps
growing at a modest pace, adding both
municipal contracts and private clubs.
The Northbrook, Ill.-based company has
a portfolio of 121.5 golf courses, up from
107 in 2012.
Recent additions include: Colwood
Golf Course in Portland, Ore., a city
course that encompasses a wetlands
project; Dublin Ranch Golf Course in
Dublin, Calif.; La Gorce Country Club, a
private equity club in Miami Beach, Fla.;
Country Club of Bristol in Bristol, Tenn.,
a 120-year-old semi-private club; and
Apple Ridge Country Club in Mahwah,
N.J., a private club.
No. 6 Landscapes Unlimited
Landscapes Unlimited — the mother
company to Landscapes Golf Group —
has decided to drop the secondary name
and brand its entire company under the
Landscapes Unlimited name.
The company owns or operates 30
properties. Landscapes Golf Group also
provides clients with golf consulting
services and is responsible for the
construction and renovation of more
than 1,200 golf courses.
Sales volume rising
KemperSports recently took over management
of Dublin Ranch Golf Course in Dublin, Calif.