The Pellucid Perspective - January 2022 - 10

COMINGS
& GOINGS
Transactions & Listings Dominate Light Month
A
ctivities picked up in December vs. November's dearth
with 12 activities in the public domain hitting our radar.
The monthly tally was 8 Transactions (continuing golf
operations)/Sales followed by 4 " take outs " (Closures and Redevelopments).
For our dedicated readers, the below table provides
the details; for our " skimmers, " here are the highlights.
The Hoffman Companies, based out of the Naples FL area
and previously primarily commercial real estate owner/operators
have taken a shining to golf in what the principal calls
more of opportunistic vs. strategic investment. They believe
the time is right for a rotation into golf based on trends and
valuations. They've purchased several courses over the past 1218
months and say they have designs on 3-5 more; their core
geography is south FL but they indicated that they're also eyeing
select properties of interest outside FL. We'll see if their
timing, buying and ability to operate are " up to par " or not.
Two courses are coming back to life, one of them River
Birch (the artist formerly known as Bamberg GC) in SC is
making its second resurrection in less than 5 years with a purGolf's
landscape changes
Event
Course
River Birch GC
(formerly Bamberg
GC)
Open/Re-open
Jasper Hills GC
(formerly Sebastian
Hills GC)
Closed
Cross Creek
Golf Club
1781 Club
(formerly Scenic
Valley Golf
Course)
Transacted/
For Sale
Rocky Knoll
Country Club
Bangor ME
Pub/18
Los Angeles CA Pub/18
Pittsburgh PA
Pub/18
Ken Tina LLC purchases course and real estate,
Touchstone Golf to manage
New owner, new name; very few details beyond
that but local town happy to see it remain a golf
operation for foreseeable future
Local businessman and wife purchase course for
$875K from Stella Morgan who bought it in '16
at foreclosure auction for $350K (not great, but
not bad return for 5 poor industry years) and
said she made a profit every year of ownership
(impressive!)
The Old Collier
Golf Club
Ft. MyersNaples
FL
Priv/18
Purchased by The Hoffman Companies, Ian
Mossman new golf div. President classic quote,
" COVID has done for the game of golf what Tiger
Woods could never do " (truth!)
Dayton OH
Pub/18
chase and re-open by a SC local golf stakeholder. The other,
Jasper Hills (AKA Sebastian Hills, had to keep Hills in the
name there somewhere) in the Dayton OH market is the resurrection
of an 18 hole layout that's been dormant since '17.
Now that's a labor of love to bring that much turf back to condition
after 4 years of " lying fallow. " We sincerely wish them
luck and that would be a case study for our GCSAA friends in
KS if they pull it off reasonably.
In the redevelopment category, this month also brings us
another case study in the economics of highest-and-best use
as Southmoore transacts for redevelopment as a warehouse
with the owner exiting with a $1.7M gain over 5 years and
what appears, using our facility database revenue projections,
to be a 3x multiplier for commercial use conversion. Contrast
that to Rocky Knoll which transacted for $875K from a '16
purchase price at $350K and what appears to be a revenue
multiple of <1.0. While I know that we want to preserve and
balance greenspace with commercial development, there are
hard economic trade-offs behind our collective altruism.
DMA
Augusta GA
Type/Holes Summary
Pub/18
Previously closed ('17) then resurrected by
current owner, DHC Inc. for purchase of $750K.
Closed by next owner in Sep '21 but rises like a
Phoenix from the ashes once again bought by Joe
Schlierholz, former COO of Hidden Valley GC in
nearby Gaston SC (betting on adage " best to be
1st son, 2nd wife, 3rd golf course owner " ?)
Bought by local foursome (makes sense for golf!),
course closed in '17; new owners had originally
thought to just restore 9 initially but now going to
resurrect all 18 in time for '22 re-opening
10 The Pellucid PersPecTive
January 2022
The Pellucid Perspective - January 2022

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