If the current real estate cycle were a baseball game, many experts would agree golf
is entering the late innings of a typical
This made 2016 a very good year for
brokers, as investment money continued
to flow into golf. Leading the way was
Marcus & Millichap’s Leisure Investment
Properties Group, which had closed 20
deals as of mid-December, with five additional courses under contract.
“If we add our marina sales, that would
give us 30 sales,” said Steve Ekovich,
national managing director of the group.
“That is a record for our group, and for the
industry, as far as I can tell.”
Most of those deals did not make big
headlines, as they were for sales of less
than $5 million. But their cumulative effect
reflects an industry where prices are rising
and investors are continuing to look to golf
for purchasing opportunities. Ekovich said
half the buyers were new to the industry.
They ranged from high-net-worth individ-
uals to private equity groups.
But, there were still plenty of big deals in
2016. In fact, Marcus & Millichap reported
that the average U.S. sale price topped $5
million for the first time since the Great
Recession began eight years ago.
That included a deal that is perhaps the
most expensive single-asset acquisition to
date – the estimated $50 million purchase
of Troon North Golf Club in Scottsdale,
Joining that sale in 2016 were a series
of acquisitions by Asian investors, as well
as the sale of some high-profile distressed
assets that finally found new owners. Here
are 10 deals that defined the year.
Troon North Golf Club,
Buyer: Troon Golf
Seller: Pacific Coast Capital Partners
Broker: CBRE, seller representative
Price: $50 million (estimated)
Troon Golf, which has operated Troon
North since the management company
was founded in 1990, reacquired its flagship property in November. While terms
of the deal have not been disclosed, it
appears to be one of the largest single-asset transactions to date.
“It was the largest stand-alone golf
course sale we’re aware of and certainly
been a part of,” said Jeff Woolson, managing director of CBRE’s Golf & Resort
Group, which brokered the deal on behalf
of the seller.
Troon North was being marketed for
$45 million to $55 million, and sources
said the sale price was in that range.
Troon CEO Dana Garmany, whose
company previously owned 25 percent
of the highly acclaimed 36-hole, daily-fee facility, said there was an agreed-upon marketing process with controlling
partner Pacific Coast Capital Partners
(PCCP), and “we matched the deal.”
PCCP gained its majority stake in the
course after acquiring the club’s debt position from now-defunct Wachovia Corp.
The facility is one of the highest-grossing
and most profitable properties in the golf
“We’ve owned it before, and now we
own again, 100 percent,” Garmany said.
“It’s our namesake.”
Oki Golf portfolio,
Buyer: HNA Holdings Group
Seller: Scott Oki
Price: $137.5 million
The flow of Chinese capital into the United
States for golf course assets hit a high
point in October, when HNA Holdings
Sales Year of the
From acquisitions by Asian investors to the sale of
high-profile distressed properties, we identify the
transactions that defined 2016. BY SCOTT KAUFFMAN
Golf Club, Mukilteo,
Wash., one of Oki
Golf’s 10 courses in