Latest distressed property type investors are increasingly eyeing: golf courses

New York /
Mar.March 15, 2012 12:00 PM

Investors are betting on golf courses as they predict a significant decline in the number of golf courses nationwide, due to a number of factors, Bloomberg News reported.

The median price for a golf course was down to $3 million in the third quarter of 2011, from $4.6 million in 2006, according to numbers from national commercial brokerage Marcus & Millichap. The result is that investors, including Donald Trump himself, whose Trump Golf company has plans for courses from Scotland to the Bronx, are snapping up the properties, Bloomberg said.

The reason for the decline in prices was partially due to a lack of financing for commercial real estate after the financial crisis, but golf courses in particular felt the tough times more acutely due to a glut that was the result of a building boom in the wake of Tiger Woods’ popularity in the late 1990s.

“Lack of financing is really causing a discount to value and investors are taking advantage,” said Steven Ekovich, a director at Marcus & Millichap’s National Golf & Resort Properties Group.

“They built too many courses during the ‘Tiger boom’ and now they’re closing and disappearing,” said Trump, who just last month entered an agreement to buy the Doral Golf Resort & Spa in Miami for $150 million. [Bloomberg News]


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
555 California Street with Steve Roth and Donald Trump (VNO, Getty/Patrick McMullan, Getty)
What tenants pay at Vornado and Trump’s 555 California Street
What tenants pay at Vornado and Trump’s 555 California Street
Images of the Gateway Program and Pete Buttigieg (Photos via GDC, Getty, iStock)
Gateway tunnel lurches ahead with federal approval
Gateway tunnel lurches ahead with federal approval
Manhattan District Attorney Cy Vance and Donald Trump (Getty)
Manhattan DA convenes grand jury in Trump probe
Manhattan DA convenes grand jury in Trump probe
Donald Trump, New York Attorney General Letitia James, Manhattan District Attorney Cy Vance (Getty)
Tish James joins Cy Vance’s criminal probe of Trump Org
Tish James joins Cy Vance’s criminal probe of Trump Org
Eric and Lara Trump with 502 Bald Eagle Drive in Jupiter (Getty, Google Maps)
More Trumps buy in South Florida: Eric, Lara paid $3M for Jupiter home
More Trumps buy in South Florida: Eric, Lara paid $3M for Jupiter home
Donald Trump and 40 Wall Street (iStock, Sterlfilms/Wikimedia)
40 Wall’s valuation chop means tax savings for Trump Org
40 Wall’s valuation chop means tax savings for Trump Org
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...