2011 Sales recap: Strong start, slow 4Q

 

The volume of golf course sales increased by 11 percent in 2011, with 100 transactions with known market data and a total of 134 sales overall, according to a report by Marcus & Millichap.

The total dollar volume was up even more — increasing from $297 million in 2010 to $451 million in 2011. However, one sale — Desert Mountain Golf Club in January — accounted for $73.5 million. Subtracting that sale, the average sale price still increased from $3.3 million to $3.77 million.

The fourth quarter of 2011 was the slowest of the year, with only 19 transactions with known market data.

“The first half [0f 2011] was very strong with buyers from Asia, Europe, Canada and the US placing bets on the US golf market,” writes Steve Ekovich in his company’s semi-annual report. “In the second half of the year, summer news of a double dip recession caused buyers to reassess their underwriting to become more conservative, driving values down and ultimately buyers’ offers down.”

Ekovich said that re-trades — buyers under contract who ask for price reductions — also increased. However, he said that 2012 should prove better for sellers and buyers.  He expects new money and encouraging economic news to drive up sales prices slightly.

Sales in the last few months of 2011 included: The Palm Aire Country Club in Pompano Beach, Fla., for $7.5 million; Red Tail Golf Club in Orlando for $6.2 million; Colony West in Tamarac, Fla. for $3 million; The Foothills Golf Club in Phoenix for $2.35 million; Hunters Oak Golf Club in Baltimore for $2.3 million and Grand Haven in Palm Coast, Fla. for $1.7 million. 

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