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Ryan Hillenbrand

  • Karma: +0/-0
OT - Course purchase due dilligence
« on: January 07, 2020, 10:14:58 AM »
If one were to explore buying a course, I assume there are consultants of some type in the industry who can look what sort of upgrades a facility needed (both course and buildings) and come up with an approximate appraisal value?


I'm not sure how in the weeds an architect gets on this piece. I assume they can help with the investment needed to renovate the course, but wasn't sure on other infrastructure.


Would appreciate names or referrals. Feel free to DM me if you'd rather discuss offline

Jeff Schley

  • Karma: +0/-0
Re: OT - Course purchase due dilligence
« Reply #1 on: January 07, 2020, 10:52:41 AM »
Ryan,
How exciting.  If you can tell us the state I know some people (lawyers) look into the tax status and value along with how to appeal for a lower appraised value etc.  A gift that keeps on giving each year.
Good luck.
"To give anything less than your best, is to sacrifice your gifts."
- Steve Prefontaine

Steve Lapper

  • Karma: +0/-0
Re: OT - Course purchase due dilligence
« Reply #2 on: January 07, 2020, 11:01:11 AM »
Have done this multiple times.


Sent you a PM.



The conventional view serves to protect us from the painful job of thinking."--John Kenneth Galbraith

Jeff_Brauer

  • Karma: +0/-0
Re: OT - Course purchase due dilligence
« Reply #3 on: January 07, 2020, 11:07:26 AM »

Ryan,


It seems standard (to me, anyway) that a golf biz consultant does a study, with a gca as a sub to determine potential upgrades.  Usually the biz consultant analyzes the market and may request the gca provide low, medium and high renovation options so they can determine the cost and debt of proposed improvements and what they can support.  Low is usually patching up, medium may be infrastructure and new grasses, and high gets into the "rebranding" of a course.


Consultants tend to be optimistic or pessimistic types, which you might determine in an interview.  Most basically say the market provides X rounds and has Y number of courses, and presumes that with proper upgrades, if your course is 90% of "Y" it will get to the norm.  Some consultants think you might get more than the norm, others not.  Obviously, location and other trends make each course a bit different than the norm.


NGF did a study 2015 in DFW showing most public (and some private) renovations do increase revenues.  Just an opinion, but as more courses have upgraded, the desire to go play the new course in town (or newly renovated) at a great premium price seems to have waned a bit.  Spending less had the greatest ROI, and spending more had greater revenue increases, but a lower ROI, in general, which makes sense to me.  Fix what you need to fix (i.e., greens, irrigation, bunkers) and don't overspend.  Golfers prefer maintenance to design anyway, which is a pretty well known concept, LOL.
Jeff Brauer, ASGCA Director of Outreach

SB

  • Karma: +0/-0
Re: OT - Course purchase due dilligence
« Reply #4 on: January 07, 2020, 03:06:03 PM »
If one were to explore buying a course, I assume there are consultants of some type in the industry who can look what sort of upgrades a facility needed (both course and buildings) and come up with an approximate appraisal value?


I'm not sure how in the weeds an architect gets on this piece. I assume they can help with the investment needed to renovate the course, but wasn't sure on other infrastructure.


Would appreciate names or referrals. Feel free to DM me if you'd rather discuss offline
Sent you a DM. 

Ryan Hillenbrand

  • Karma: +0/-0
Re: OT - Course purchase due dilligence
« Reply #5 on: January 07, 2020, 04:22:53 PM »
Thanks for your input guys, really appreciate it.


A course here in St. Louis, Normandie Golf Club, was donated to a local university several years ago (which probably qualifies under "with benefactors like those, who needs enemies) Prior to the donation some local people had expressed interest in buying it, renovating, and maybe do something special with it. Before anything could form, it was gifted to the school. The school's one order was "don't ask us for money to keep it operational". So they leased it to a management company for $1, and the management company kept it status quo - $25 green fees, poor conditions, etc.


Out of the blue the management company announced they were backing out, and the course is supposed to close next week. Now the window is back open to potentially buy the course. We'd love to do something unique in the area, but not unique for those of us who love golf course architecture and places that have thought out of the box - an affordable minimalist restoration with emphasis on fun, minimal facilities, perhaps walking only encouraging a caddie program involving the disadvantaged kids in the area, etc. I'd love to see it be club similar to the UK models, yearly dues in the $2000 range. But I have no idea if the private part is feasible, and potential partners are pessimistic.


Could be a pipe dream but I can't shake this itch


Background on the course - 1901 Robert Foulis course claiming among others to be the oldest 18 hole course in the original location, west of Mississippi. Former private club that went public in the 80s. Tremendous fun, but has been in horrible shape for decades.





Bruce Katona

  • Karma: +0/-0
Re: OT - Course purchase due dilligence
« Reply #6 on: January 07, 2020, 05:12:41 PM »
Ryan:

BK can vouch for the fact that Slapper has done this exercise a few times........he's a great resource and likely has all of the DD lists you'll ever need.

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