The Pellucid Perspective - February 2011 - (Page 8)

COURSES FOR SALE Reynolds Plantation courses on the market By Jim Dunlap S lowing real estate sales and an expiring line of credit have led Linger Longer Development Company to put their six Reynolds Plantation golf courses on the market. Linger Longer and the Reynolds family are currently exploring three principal avenues for disposing of the six courses to help raise $45 million toward a total of $105 million in cash and pledges required by lender Bank of America to extend the company’s approximately $175 million line of credit from B of A that has expired. The additional $60 million has been pledged by the Reynolds Family Trust in the form of undeveloped land which is owned by the family. The three alternatives currently in play are a sale to a private ownership group which is reportedly an existing golf course ownership company, purchase by a group of high net worth Reynolds Plantation property owners, and a purchase by the Reynolds Plantation Property Owners Association at large. Sources familiar with the situation have indicated that the CONDITIONED FOR SUCCESS. The golf landscape in America has changed. In a market overcrowded with golf courses and little prospect for demand to grow significantly, today’s course owners and operators are experiencing extreme competitive pressure in nearly every aspect of their business. Never before has there been more reason to work smarter and more efficiently—or more reason to partner with ValleyCrest Golf Course Maintenance. As the national leader in golf course maintenance contracting, we’re a trusted steward of all manner of golf properties throughout America. 24151 Ventura Boulevard Calabasas, CA 91302 (888) 406-GOLF www.valleycrest.com Comprehensive Golf Course Maintenance initial offer from the golf course ownership entity was deemed to be too low, leading to the exploration of other buyer alternatives by Linger Longer. The company did not reveal the identity of the golf course ownership group in question, but there is some speculation that Canongate Golf and parent company Sequoia Golf Group, which has a strong presence in the Georgia market already, could be a likely candidate. Canongate already operates 23 clubs including 27 courses in Georgia, primarily in close proximity to the Atlanta market. Assuming that one of those three buyer alternatives puts together an acceptable offer, it will need to be done quickly. Bank of America, which bought out the other lenders involved in the previous line of credit, has given Linger Longer an end of April deadline to secure the additional $45 million in cash to add to the Reynolds pledge of $60 million in land. The previous line of credit reportedly expired at the end of 2010. In addition to the six courses and clubs, Linger Longer is hoping to sell a number of other assets within the Reynolds Plantation developments, including marinas, the Lake Club, tennis facilities and other amenities and infrastructure. Presumably, those additional revenues would be used to make up the balance of the $45 million necessary to reach the $105 million figure required to extend the line of credit for an additional three years. It is said to be unlikely that the sale of the six courses alone would generate anywhere near the $45 million total in today’s golf course market. The impending sale of the Reynolds Plantation courses is the latest in a series of sales or foreclosures of trophy properties and real estate or hospitality related assets in the golf industry. It was recently announced that Grand Wailea Resort & Spa on Maui, Doral Golf Resort & Spa in Miami, La Quinta Resort & Club and PGA West in La Quinta, Calif., The Arizona Biltmore Hotel & Spa in Phoenix and the Claremont Resort & Spa in Berkeley, Calif., have all declared bankruptcy after lenders seized them from owner Morgan Stanley’s real estate funds. The lenders, which include Paulson & Co., one of the world’s larger hedge funds, have indicated that they will retain the properties through reorganization, in anticipation of an uptick in travel and leisure spending at some unspecified time in the future. Another Georgia development, Sea Island and its courses, sold late last year to an ownership group including Oaktree Capital of Los Angeles and Avenue Capital of New York after the original developers declared bankruptcy in August 2010. Up the coast in Myrtle Beach, Century Golf Partners purchased The Legends, a five-course portfolio of Myrtle Beach area courses formerly owned by a group led by Peter Ueberroth. Century Golf Partners had previously been managing the courses for the Ueberroth group. n February 2011 8 The Pellucid PersPecTive http://www.valleycrest.com http://www.valleycrest.com

Table of Contents for the Digital Edition of The Pellucid Perspective - February 2011

The Pellucid Perspective - February 2011
Contents
Is Groupon Good for Golf: The Sequel
Solving the Professional Payment Predicament
Jan 2011 YtD Weather Impact, Dec 2010 YtD Utilization
Reynolds Plantation Courses on the Market
Atlanta, GA Core Business Statistical Area (CBSA)
Alternative Golf? Or an Affirmation of How Many of Us Play Already?
Custom Clubfitting in 2011: A Solution but Not a Cure
Pap-Agony for Phoenix Muni
Show Time - Again

The Pellucid Perspective - February 2011

https://www.nxtbook.com/nxtbooks/pellucid/perspective_202101
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202012
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202011
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202010
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202009
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202008
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202007
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202006
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202005
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202004
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202003
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202002
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202001
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201912
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201911
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201910
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201909
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201908
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201907
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201906
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201905
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201904
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201903
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201902
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201901
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201812
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201811
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201810
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201809
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201808
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201807
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201806
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201805
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201804
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201803
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201802
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201801
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201712
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201711
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201710
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201709
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201708
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201707
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201706
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201705
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201704
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201703
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201702
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201701
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201612
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201611
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201610
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201609
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201608
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201607
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201606
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201605
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201604
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201603
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201602
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201601
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201512
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201511
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201510
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201509
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201508
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201507
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201506
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201505
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201504
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201503
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201502
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201501
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201412
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201411
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201410
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201409
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201408
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201407
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201406
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201405
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201404
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201403
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201402
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201401
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201312
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201311
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201310
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201309
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201308
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201307
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201306
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201305
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201304
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201303
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201302
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201301
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201212
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201211
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201210
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201209
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201208
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201207
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201206
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201205
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201204
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201203
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201202
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201201
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201112
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201111
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201110
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201109
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201108
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201107
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201106
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201105
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201104
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201103
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201102
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201101
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201012
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201011
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201010
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201008
https://www.nxtbookmedia.com