Market Bottom Near in Distressed Golf Sales

 

Kathy Bissell

While there are still areas of the country or specific courses where golf has not rebounded, some markets have high demand for courses and no availability for purchase.  This is especially true in major markets or within an hour of major markets.  Greater NYC market, for instance, where we have two properties available, demand is high, particularly with foreign investors.

There is also strong interest from buyers for failed golf developments, although most of those were acquired early in the recent business downturn.    

Sellers with quality properties will make their courses available to buyers, but not at bottom feeder prices. What that should mean for sellers of courses in populated areas is that prices will tend to rise perhaps as soon as the next 18-24 months as the slack is being taken out of the market.  

Rural locations may continue to struggle as money is currently flowing to populated centers. 

Owner financing and cash purchases are currently the best avenues for transactions, although one or two sources of funding are available.