Private investment company CTRL USA will expand its portfolio into the commercial real estate market with the planned acquisitions of golf clubs, resorts and private equestrian properties with food and beverage options, the Atlanta-based firm announced this month.
The company said in a release that it expects scheduling of the first acquisition to begin and close by the end of the year, subject to typical closing conditions. CTRL USA did not identify any purchase targets but the company said the transactions should have an aggregate value of approximately $50 million to $100 million.
"With our detailed market insights and research we have determined the growing trend there is of an extreme demographic diversity influx within the private golfing and equestrian market," the company said in a prepared statement.
A report issued by Marcus & Millichap in April found that 96 golf clubs and courses sold in 2019, marking the fifth straight year the sales of such properties declined. The average price also dropped 18.4% and the median price was down 28.4%, the report said.
"We remain optimistic that the average sales price and median sales price will increase slightly after an unusually large amount of transactions on the lower end of the tranche and weather will bounce back after two historically bad years (especially for the west coast) boosting financials," the report projected for 2020. "We expect transaction volume to maintain its current level of around 100 sales annually and repurposing and redevelopment of golf courses to stay hot."
The effects of the COVID-19 pandemic on golf course sales remains unclear.
"It's too early to understand if there will be a value implication or if this is just a blip on radar," Matt Putnam, managing director at Colliers International Tampa Bay and a specialist in leisure properties, told the Tampa Bay Business Journal in April. "If somebody was struggling before this, this certainly isn't helping."
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Cheryl Miller
Cheryl Miller, based in Sacramento, covers the state legislature and emerging industries, including autonomous vehicles and marijuana. She authors the weekly cannabis newsletter Higher Law. Contact her at [email protected]. On Twitter: @CapitalAccounts
