A California developer is negotiating to buy a historic, but struggling racetrack in Arizona.
James Watson, managing partner of CT Realty, is under contract to buy Turf Paradise in Phoenix from owner Jerry Simms and several partners, Axios Arizona reported.
Watson said that if the deal goes through, horse racing will continue for at least the next couple of years, though he also plans to redevelop at least some of the property with industrial and multifamily uses, the outlet reported.
“We’re a national real estate development company, and we’re intrigued by the racing element,” Watson told the outlet.
The deal could close by mid-August, Bloodhorse.com reported.
“The horsemen are excited for a new owner. Unfortunately, the new owner probably doesn’t have racing in his long-term plans,” Leroy Gessman, executive director of the Arizona Horsemen’s Benevolent and Protective Association, told Bloodhorse.com. “But they have indicated, anyway, they plan to run for two or three more years, and in the meantime we’re looking at alternatives for other places.”
Simms has owned Turf Paradise, which opened in 1956, for the past 23 years after purchasing it for $53 million.
“I’d rather spend time with my grandkids,” he told Axios.
It’s the second horse racing track in the Phoenix area that is in negotiations to sell.
The Stronach Group, which owns six tracks across the nation, is under contract to purchase Arizona Downs, Bloodhorse.com said. The intent, if the sale goes through, is for Arizona Downs to continue racing horses, though it does not have any dates set for this year.
The sales have thrown the future of horse racing in Arizona into question. They’re also not the only recent high-profile track sales.
The Chicago Bears closed the deal to buy the former Arlington International Racecourse in the northwest suburb for $197 million.
The team sent out an open letter, announcing the closing of the purchase from longtime owner and horse racing company Churchill Downs.
“Last fall, we released an open letter confirming the team had reached an agreement for the purpose of acquiring 326 acres of property in Arlington Heights to secure the potential of beginning a new and exciting chapter for the Bears, our fans, the Chicagoland community, and the State of Illinois,” the letter reads. “This week, we took another step toward realizing that vision by closing on the Arlington Park property.”
— Ted Glanzer