Pete Dye Club for Sale

[Mark Manuel]

A friend sent me this listing, interesting stuff.


The owner of the Pete Dye Golf Club in Bridgeport, WV has this facility for sale and has asked us to inform all PGA members in the Tri-State PGA Section as well as PGA Members that are interested in Facilities For Sale in other sections about these opportunities.
 
Facility Information: The Pete Dye Golf Club is a private national golf club located in a tranquil valley of north central West Virginia, 2 miles west of Interstate 79. The 18-hole championship course is a 1995 Pete Dye design. Situated on 240 acres, Pete Dye created a visually stunning property with the true integration of the game with the area's coal-mining heritage and topography. The course is considered one of Pete Dye's best, if not his best golf course.
Pete Dye Golf Club is a masterpiece designed by the legendary Pete Dye that consistently achieves superior rankings:
#1 Best Course in West Virginia Golf Digest (2009)
#4 AmericaTMs Best Modern Courses (since 1960) GolfWeek (2009)
#42 Top Private Retreats in the U.S. Golf Digest (2009)
#57 America's 100 Greatest Golf Courses Golf Digest (2009)

Course Overview:
Holes: 18 Championship Type: Private, Non-Equity
Yardage: 7,308 Year Built: 1995
Par: 72 Turf Area: 240 Acres; 150 Acres Irrigated
Slope: 144 Irrigation: Rainbird Maxi V / Triple row
Rating: 75.8 Carts: 70 E-Z-GO
Greens: Bentgrass Tees: Bentgrass
Fairways: Bentgrass Roughs: Fescue / Bluegrass
Investment Highlights Include:
• 24,000 sq ft clubhouse with spectacular vistas overlooking the golf course
• Clubhouse includes Pro Shop, Grill and Dining areas for 225, conference rooms and locker rooms, outdoor and rooftop patios
• Championship 35 acre practice facility with multiple tee areas, fairway and green practice bunkers and practice putting, chipping and pitching areas
• 16 room Black Diamond Lodge
• 7 town homes available for rental to the club for its use
• Since 2004 home to the Nationwide Tour Players Championship (6/22 â€" 6/28/09) with the largest purse on the Nationwide Tour
• Located within 4 hours drive of 60% of the U.S. population, 8 miles to airport with multiple daily flights to Pittsburgh, Washington, DC and elsewhere.
The owner has indicated an interest response deadline date of July 15, 2009 or until sold. To find out more about this opportunity, contact the owner's representative, William H. Sawyer of Sawyer Resort and Golf Advisors, by calling 203-625-0900. CareerLinks job order #8212.

[Anthony Gray]

  Is this the second owner or the first owner?

  Anthony

[Steve_ Shaffer]

How much?

[Tom Roewer]

A notice is also out offering Shaker Run for sale.

[Anthony Gray]

  Who ownes it now? And didn't they recently buy it?

  Anthony


 

[Cabell Ackerly]

  Who ownes it now? And didn't they recently buy it?

  Anthony
 

You guys ever heard of google?

http://www.westvirginiarecord.com/news/219329-r.i.-company-sues-former-pete-dye-owners-for-3-million

R.I. company sues former Pete Dye owners for $3 million


6/3/2009 10:00 AM
By Justin Anderson -Kanawha Bureau

CLARKSBURG -- A Rhode Island financial firm is suing the former owners of the Pete Dye Golf Club for $3 million, the balance of a longstanding loan made before the firm bought the golf course at auction.

Textron Financial Corp., through subsidiary SPE GO Holdings, filed a lawsuit May 18 in U.S. District Court in Clarksburg against James D. and James J. LaRosa.

The complaint says the LaRosas breached a contract entered into with Textron related to a multi-million line of credit extended to Golf and Fairway, LLC, a company operated by the LaRosas to run the golf course.

Textron bought the Harrison golf club last year at a foreclosure auction for $7 million. The next highest bidders included former state senator and current House of Delegates member Mike Ross.

At the time of the sale, the public was led to believe that the out-of-state company simply swooped in and bought the golf club.

But, according to Textron's complaint, the golf club was auctioned off because the LaRosas had defaulted first on a $7.5 million loan from Textron and then on a modification to the loan agreement which brough the amount to $9 million, according to the complaint.

The first loan came in late 2001, just months after the LaRosas bought back the golf club from Golf Trust of America for nearly $16 million.

According to Textron's complaint, the modification to the agreement came after the LaRosas defaulted on the initial loan. The modification brought the principal amount of the loan to $9 million.

After the family defaulted on the modified loan, the golf club was put up for auction on Aug. 27, 2008, the complaint says.

Textron bid $7 million for the property. In its lawsuit, the company said that left an outstanding balance on the loan to the LaRosas of $2.7 million, plus accruing interest.

The company is asking a judge to award it more than $3 million in alleged debt from the LaRosas, plus interest accruing at 7.03 percent.

The company also wants reimbursed for legal costs.

David M. Thomas and Joshua S. Rogers are representing the plaintiffs.

U.S. District Court case number: 1:09-cv-66

[Mike_Trenham]

• Located within 4 hours drive of 60% of the U.S. population, 8 miles to airport with multiple daily flights to Pittsburgh, Washington, DC and elsewhere.

Could this possibly be true? 60% of US population a 4 hour drive.

Also it is interesting to hear the name Golf Trust of America again, this potential exit strategy for developers had to feed some of the growth early in the cycle.  Build it, flip it to the REIT, operate it, model was an interesting idea if the numbers could have worked but they don't for new construction unless you thread the needle perfectly.  I know I followed that company's SEC filings closely back during the late 1990s.

[Chip Gaskins]

two things.

1) the club sold for $16Million a few years ago!

2) i am pretty sure the "population center" of the US if you plotted it on a map is near southern,central Pennsylvania.

[Ben Sims]

Chip and Mike,

Gross miscalculation at best.  I was bored today at work and saw this post.  I emailed some buddies back in California that have a sort of Google Maps/CNN politico hybrid map feature that we used for our worldwide binders we took on missions and they can plot just about anything.  Their map using 2000 census data had approximately half (they said 51.6%) of the US population within 240 miles of Bridgeport, WV.  The kicker was that New York and much of New Jersey was too far to count as being within four hours.  Now, I am sure if you said, one hour plane ride then 3 more hours to get to Bridgeport by car, it would SIGNIFICANTLY increase the percentage. 

After realizing how much time I have spent figuring that tidbit out, I think I need a life.

[Jason McNamara]

Not that Ben's buddies are wrong, but let's get our terms straight.  The population center of the US is now in south-central Missouri.  It hasn't been near Bridgeport for about 170 years.

[Steve Lang]

  They're not saying anything about population center.. just 60% within 4 hours.. 

Shaker Run? in Cinti?

[Steve_ Shaffer]

Shaker Run is for sale:

http://www.loopnet.com/property/16205161/4361-Greentree-Road/

[Anthony Gray]

  I am a graduate of Bridgeport High School.

  Anthony

[Carl Nichols]

Ben:
What if you use 280 miles (70 miles/hour, the speed limit on some of the relevant highways) rather than 240?

[Jerry Kluger]

It is 408 miles from NYC to Bridgeport, WV., but to me that is not the issue.  The question is the availability of accommodations at the club for members and their guests.  The operating costs including carrying costs on the loan or the value of the money used to purchase the club at $7M to me, makes it nearly impossible to operate it at a profit. 

[Chip Gaskins]

Are the operating cost a lot higher due to the ruggedness of the terrain?  or is it something else?

[Carl Nichols]

Jerry:
I wasn't suggesting that 280 miles gets you to NYC, but that a circle with a 40-mile longer radius might capture enough additional population (whether in Ohio, Maryland, Virginia, or elsewhere) to get them close, or at least closer, to 60%.
Do golf courses typically describe debt service as "operating costs"?

[Greg Tallman]

Little birdie told me it could be had for only slightly more than the monies owed to the financial company (3 million). Local businessman was approached to take it over for 3.5, could maybe make a go of it at that price. Would have to completely change the business model and chase the money.

[Lou_Duran]

Unless the location is really bad, I'd be shocked if Textron would take a haircut of nearly $7MM.  These guys know their stuff.  If the golf market has gotten that bad we are in a heap of trouble.

[Tom_Doak]

Lou:  Welcome to 2009.

Anthony:  Since you are a local, I'm sure they would sell to you at a lesser price.  Then you could cut in everyone at GOLFWEEK who think so highly of it.

[Greg Tallman]

Unless the location is really bad, I'd be shocked if Textron would take a haircut of nearly $7MM.  These guys know their stuff.  If the golf market has gotten that bad we are in a heap of trouble.

Location is an issue if looking toward major airport: slightly more than 2 hours to Pittsburgh. 

Privates can fly in to a regional about 20 minutes away.

Drive is easy as it is no more than 10 minutes from a major interstate (though you feel you are 100s of miles from civilization... minus the smokestacks that is)

Aricle said Textron was seeking 3 million from the owner and assume the 3.5 includes taking on some additional debt given the recent history of  transactions of club ownership.


Anthony: Alvarez was the guy reportedly approached to take it over... he declined. Not sure how long you have been away but you  may recognize the name.   

[Tom Roewer]

They're not saying anything about population center.. just 60% within 4 hours.. 

Shaker Run? in Cinti?

yes  Shaker Run in Lebanon just NE of Cinci