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Don Mahaffey

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Wolf Point Club auction
« on: February 10, 2020, 08:25:07 AM »
https://www.conciergeauctions.com/blog/wolf-point-golf-course-texas-gulf-coast-auction-no-reserve


I didn't write the brochure and I have no financial interest in any part of the sale. My only hope is it lives on as the golf course Mike and I helped create for Al.

John Mayhugh

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #1 on: February 10, 2020, 08:52:57 AM »
I hope so too. I'm glad to see that they mentioned low maintenance, but bet that prospective buyers would still be surprised at how economical the course design is. That would seem a big selling point, even for those with the ability to buy such a large property.

Tommy Williamsen

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #2 on: February 10, 2020, 09:43:54 AM »
I hope this course will be purchased by someone who will allow greater access to the course. I am dying to play it.
Where there is no love, put love; there you will find love.
St. John of the Cross

"Deep within your soul-space is a magnificent cathedral where you are sweet beyond telling." Rumi

Paul Carey

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #3 on: February 10, 2020, 04:29:24 PM »
I hope this course will be purchased by someone who will allow greater access to the course. I am dying to play it.


Finally,  a course I have played and Tommy has yet to play.  Never thought I would see that!  I agree 100%.  Wolf point is such a gem and a golfing pleasure that deserves to be seen.  I wish I had the resources.

Pete_Pittock

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #4 on: February 11, 2020, 01:25:34 AM »
My dream is it purchased by a pga tour player, probably based in Texas   could fly down with friends, set it up for specific conditions, etc
 

George Freeman

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #5 on: February 11, 2020, 08:01:08 AM »
GCA.com is still looking for a home club... 

Only half kidding.
https://golfclubatlas.com/courses-by-country/usa/the-carthage-club/
Mayhugh is my hero!!

"I love creating great golf courses.  I love shaping earth...it's a canvas." - Donald J. Trump

Tom_Doak

  • Karma: +3/-1
Re: Wolf Point Club auction
« Reply #6 on: February 11, 2020, 09:42:37 AM »
I'm not sure that Ran would like us to go there, and if he objects he can certainly squelch this, but it would be a VERY useful discussion for Golf Club Atlas to debate what Wolf Point is worth.


The result might not have anything to do with how much it sells for.  The price is ultimately what someone is willing to pay . . . if two rich guys both wanted it as their own private playground, the price would be high.  But it's been for sale for a while now with no deal, so it's probably not going to be a bidding war.


So -- what is a golf course like Wolf Point worth?  Factors:


1.  It's a couple of hours from a major city
2.  There is a jet runway right next to it for the private-jet crowd
3.  It's relatively cheap to maintain by industry standards
4.  There is not a real clubhouse at present
5.  There are no overnight lodging facilities, you'd have to build those
6.  You can play golf year-round, although not many out-of-towners are going to go there for the hot and humid summer months


If you're going to say $8 million, you have to suggest a business plan that would support that number -- 400 national memberships at $20k each.  But that wouldn't build the cabins.

Jason Topp

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #7 on: February 11, 2020, 10:01:03 AM »
My business model would be as follows:


Open Friday through Monday
50 golfers per day
single price that covers lodging, food, all the golf you can play - customer pays for alcohol
Food made available en masse and is good but basic
Lodging is along the lines of the dormie houses in the U.K.
Landing strip covered by whatever fees are charged for such things.


Charge is $500 per day of golf/ per person - $100,000 in potential revenue each weekend.  In the winter I would attempt to sell out entire weekends, perhaps to club pros in the North bringing members down.


Maybe $2.6 million in revenue per year if you can sell out six months. 


I have no idea what that converts into as far as value. 


Jonathan Mallard

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #8 on: February 11, 2020, 10:07:42 AM »
I'm not sure that Ran would like us to go there, and if he objects he can certainly squelch this, but it would be a VERY useful discussion for Golf Club Atlas to debate what Wolf Point is worth.


The result might not have anything to do with how much it sells for.  The price is ultimately what someone is willing to pay . . . if two rich guys both wanted it as their own private playground, the price would be high.  But it's been for sale for a while now with no deal, so it's probably not going to be a bidding war.


So -- what is a golf course like Wolf Point worth?  Factors:


1.  It's a couple of hours from a major city
2.  There is a jet runway right next to it for the private-jet crowd
3.  It's relatively cheap to maintain by industry standards
4.  There is not a real clubhouse at present
5.  There are no overnight lodging facilities, you'd have to build those
6.  You can play golf year-round, although not many out-of-towners are going to go there for the hot and humid summer months


If you're going to say $8 million, you have to suggest a business plan that would support that number -- 400 national memberships at $20k each.  But that wouldn't build the cabins.


This brings up yet another opportunity for the tree house to form a corporation amongst the interested to facilitate and execute....


/Watching..../

Tom_Doak

  • Karma: +3/-1
Re: Wolf Point Club auction
« Reply #9 on: February 11, 2020, 10:28:56 AM »
My business model would be as follows:


Open Friday through Monday
50 golfers per day
single price that covers lodging, food, all the golf you can play - customer pays for alcohol
Food made available en masse and is good but basic
Lodging is along the lines of the dormie houses in the U.K.
Landing strip covered by whatever fees are charged for such things.


Charge is $500 per day of golf/ per person - $100,000 in potential revenue each weekend.  In the winter I would attempt to sell out entire weekends, perhaps to club pros in the North bringing members down.


Maybe $2.6 million in revenue per year if you can sell out six months. 


I have no idea what that converts into as far as value.


Turning a profit on 5,200 rounds per year would be very difficult.  Those are Sand Hills type numbers, but without a membership dedicated to making them work.

Jason Topp

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #10 on: February 11, 2020, 10:39:10 AM »
My business model would be as follows:


Open Friday through Monday
50 golfers per day
single price that covers lodging, food, all the golf you can play - customer pays for alcohol
Food made available en masse and is good but basic
Lodging is along the lines of the dormie houses in the U.K.
Landing strip covered by whatever fees are charged for such things.


Charge is $500 per day of golf/ per person - $100,000 in potential revenue each weekend.  In the winter I would attempt to sell out entire weekends, perhaps to club pros in the North bringing members down.


Maybe $2.6 million in revenue per year if you can sell out six months. 


I have no idea what that converts into as far as value.


Turning a profit on 5,200 rounds per year would be very difficult.  Those are Sand Hills type numbers, but without a membership dedicated to making them work.


I have a hard time imagining you could get more without altering the course pretty significantly. 

Michael Whitaker

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #11 on: February 11, 2020, 10:41:18 AM »
300 members with a $10k joining fee would yield $3M for a down payment on $8M. Then, $1500 x 300 yearly dues would service $5M (30 yrs) with approximately $150-200k left over. Guest fees, etc would help cover additional overhead. Guest accommodations could be built with private investment within a rental program, the way they did at Cabot Links. You could offer a “summer member” program the way they do at Yeamans Hall for additional income during the “off” season.


Numbers might need to be tweaked, but it could work.
"Solving the paradox of proportionality is the heart of golf architecture."  - Tom Doak (11/20/05)

Jeff_Brauer

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #12 on: February 11, 2020, 11:03:24 AM »

Tom brings up an interesting subject, probably not germane to an architectural discussion board, and possibly painful.


In my experience (which is certainly not universal) golf courses sell for the traditional 1X revenue or 3-7X profits of any other business.  With history of a privately owned course and a fairly remote location, there are no numbers to base a sale price, at least for the most logical buyers like large management firms. 


When golf course sales were down, I did look into buying one or two.  At least 5 years ago, the price would have been 1 year's revenue because the courses I looked at had no profits to multiply.  (Typically, the good biz proposition ones aren't for sale.)  And, to be honest, my offers (none accepted, but one was later bought by that Chinese conglomerate) reduced the revenue price by some obvious major capital improvements that had to be done right away. 


As Tom says, it would make the most sense for someone to buy it also as their private course, perhaps initiating some of the plans mentioned to at least recoup ongoing maintenance costs. 



Jeff Brauer, ASGCA Director of Outreach

Keith Phillips

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #13 on: February 11, 2020, 11:20:14 AM »
I've never been to Wolf Point.  Is there adjacent land sufficient to build a destination along the lines of Bandon/Cabot/Streamsong/Sand Valley?

David Wuthrich

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #14 on: February 11, 2020, 11:26:10 AM »
Keith, Yes, plenty of land for another course.

Kalen Braley

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #15 on: February 11, 2020, 11:29:42 AM »

Not sure where the boundaries are exactly, but looks to have some treed areas to the west, or more open land to the east.

https://www.google.com/maps/place/Wolf+Point+Ranch+LLC/@28.7492913,-96.4857896,3046m/data=!3m1!1e3!4m5!3m4!1s0x864208d4ccb69253:0xbf7149bade56fcb9!8m2!3d28.7452381!4d-96.4786754

P.S I would think the fact that it has its own private airstrip would make it more interesting.

Michael Whitaker

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #16 on: February 11, 2020, 11:48:16 AM »

Not sure where the boundaries are exactly, but looks to have some treed areas to the west, or more open land to the east.

https://www.google.com/maps/place/Wolf+Point+Ranch+LLC/@28.7492913,-96.4857896,3046m/data=!3m1!1e3!4m5!3m4!1s0x864208d4ccb69253:0xbf7149bade56fcb9!8m2!3d28.7452381!4d-96.4786754

P.S I would think the fact that it has its own private airstrip would make it more interesting.
Easy access... 2 hour drive from Houston airport.
"Solving the paradox of proportionality is the heart of golf architecture."  - Tom Doak (11/20/05)

Ryan Hillenbrand

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #17 on: February 11, 2020, 11:51:33 AM »
What did Dismal River go for? I thought that might be a benchmark as a private club. Obviously a longer/better playing season but only 1 course compare to two.


If someone incorporated the fishing and outdoor component like Dismal it could be a year round, multiple sport paradise.


With all the money in Texas I'd think a national membership club would go over well

John Kavanaugh

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #18 on: February 11, 2020, 12:17:22 PM »
This club is for sale. Don’t say anything that you wouldn’t want said if you were the owner.

Tommy Williamsen

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #19 on: February 11, 2020, 12:41:37 PM »
I hope this course will be purchased by someone who will allow greater access to the course. I am dying to play it.


Finally,  a course I have played and Tommy has yet to play.  Never thought I would see that!  I agree 100%.  Wolf point is such a gem and a golfing pleasure that deserves to be seen.  I wish I had the resources.


I suspect there are  bunch of courses you have played that I haven't. I have never hit a golf ball in Texas.
Where there is no love, put love; there you will find love.
St. John of the Cross

"Deep within your soul-space is a magnificent cathedral where you are sweet beyond telling." Rumi

Buck Wolter

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #20 on: February 11, 2020, 01:15:13 PM »

I spent some time day dreaming when I saw the initial listing -- I would think there is a sum of the parts valuation that makes more sense than as 1 chunk. If you sold off or leased the non-golf pcs you may get to a reasonable valuation on the golf (or vice versa).


My bet is some big money tech guy buys it as a bug-out spot -- he can fly out of San Jose on his G-V and have all the grass fed cattle he and his family will ever need if it hits the fan.
That airfield looks like something out of the movie American Made -- I wonder what the replacement cost of that is alone?
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Those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience -- CS Lewis

Don Mahaffey

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #21 on: February 11, 2020, 02:48:12 PM »
I spoke to the owner today.
Good amount of interest with quite a few visits already.
I have not been impressed at all with the marketing efforts by past brokers. But what do I know.


It’s over 1600 acres  only need 400 for the golf course, highway access, airport, and cabins.


Yes you have to build cabins if that’s your model, but the power is already there and it might be the easiest place in the US to build from a jurisdictional POV


Doesn’t flood and has large drainage. Matters in this part of the world.


Raw uncleared, unfenced, unimproved land sells for $5k an acre in that area.


The land is cleared of trash trees, fenced, and three phase power with fiber, wells and shops, cattle pens...etc...already built.


I’m well aware that the selling price hardly ever matches investment in a case like this but the raw land has a market value of $7M


Forget the golf course and world class runway/hanger. Just running all the power.....wells...the stuff that adds value no matter the use


next few weeks will be interesting



Mike Nuzzo

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #22 on: February 12, 2020, 01:11:28 AM »

Not sure where the boundaries are exactly, but looks to have some treed areas to the west, or more open land to the east.

https://www.google.com/maps/place/Wolf+Point+Ranch+LLC/@28.7492913,-96.4857896,3046m/data=!3m1!1e3!4m5!3m4!1s0x864208d4ccb69253:0xbf7149bade56fcb9!8m2!3d28.7452381!4d-96.4786754

P.S I would think the fact that it has its own private airstrip would make it more interesting.


The water front to the east is the property boundary - yes water access. The western edge is angled from north west to the south east - it kind of looks like a mirror image of Tennessee.


To answer Tom's initial question - it is obviously priceless based on the design and build quality.
Happy bidding
Thinking of Bob, Rihc, Bill, George, Neil, Dr. Childs, & Tiger.

cary lichtenstein

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #23 on: February 16, 2020, 09:54:10 PM »
its a dying industry, no different from retail today, with every mall with excessive vacancy ratws
Live Jupiter, Fl, was  4 handicap, played top 100 US, top 75 World. Great memories, no longer play, 4 back surgeries. I don't miss a lot of things about golf, life is simpler with out it. I miss my 60 degree wedge shots, don't miss nasty weather, icing, back spasms. Last course I played was Augusta

mike_beene

  • Karma: +0/-0
Re: Wolf Point Club auction
« Reply #24 on: February 16, 2020, 11:24:16 PM »
The airstrip reminds me of Lajitas out by Big Bend. I am going there in May with some friends and they charter a jet from Love Field and from Houston. Looks like it stays sold out. If golfers will fly out there why not the same model. One of the weekends we were wanting the whole plane was already full of Shady Oaks members. There is a lot of appeal to not having to go commercial. Other than a few mountains not sure why this would not work.