My grandfather used to be an Assistant Pro at The Pit. I grew up playing there quite a bit. As I understand it, Dan Maples was still the owner of the course and lost it in bankruptcy proceedings in 2010. His investor group tried to repurchase it but were continually outbid by Pinehurst Resort.
The Pit lost a ton of revenue when Tobacco Road opened and "Outpitted The Pit", as some articles coined it.
We still go out there from time to time. It looks like it is being maintained in some capacity (there aren't 9 year old pines in the fairways) but it's still a sad sight to see.
It is also still owned by Pinehurst resort and a routing that utilized part of the land was drawn up by Coore and Crenshaw around when the #2 renovation happened. Soon after, Pinehurst purchased National GC, re-badged it as Pinehurst #9, and the plans to build a new course on The Pit land was tabled. I believe they also planned some sort of "golf village" adjacent to the new routing. I also don't think the location would be an issue. The location is actually a huge part of what made the Pit successful originally, and with the surrounding land owned and the golf village plan, it would make the property nearly contiguous with the existing Pinehurst Resort (and closer than a lot of the courses that don't play out of the main clubhouse).