Golf Course Real Estate & Acquisitions
Golf courses occupy huge chunks of real estate. Sophisticated solutions and preparations are necessary to maximize asset value and return on investment on such properties.
Golf course owners looking to expand their portfolios or considering exit strategies should seek expert brokerage services. Transitional management often makes some sense to improve revenue streams and valuations pre-sale or post-purchase as well.
Golf courses real estate transactions are highly specialized requiring expert attention and due diligence to maximize returns.
Stay up to speed on market trends and golf course valuations. Clubs usually change hands at some sort of multiple of gross revenues or EBITDA.
Keep an eye on capitalization rates as a measure of general outlook in the market as well.
Working with a group like KPI Golf Management, our clients can often reap the rewards of long lead times and preparations in advance of sale or purchase. Existing clients can also save on commissions that would otherwise be paid to brokers.
Transitioning from Equity to non-equity
Sometimes the bast way out for a struggling facility to improve its situation is to transition from an equity membership to non-equity. With overbearing debt loads, necessary capital improvements, and membership assessments no longer an option, cash injections from outside investors can be the only way out.
Creative membership solutions may be required to address member payout obligations as well. These liabilities can turn off investors and sabotage the value of the property.
Shifting from equity to non-equity normally means a large injection of cash, erasing all outstanding debt, streamlining operations, and agreements for future capital expenditures to improve the property.
Zoning and land-use rights
Sadly in some cases, golf is not always the highest and best use of the land. Sometimes converting portions of a property for development may be advisable.
Modern-day solutions include rerouting golf courses, exposing new opportunities for development. These creative solutions can deliver strong returns with only minimal disruption to daily operations.