ClubCorp acquired its fourth course this summer with the purchase of Canterwood Golf & Country Club in Gig Harbor, Washington.
Canterwood, a private equity-owned club, was struggling with membership, having dropped from 500 to 225 members. Members were told in the Spring that the acquisition price would be $4 million, the News-Tribune in Tacoma, Washington reported. The final sales price, however, was undisclosed.
Canterwood is ClubCorp’s first golf course in the state of Washington. It owns Columbia Tower Club, a Seattle business club. Blake Walker, chief acquisitions and development officer at ClubCorp, said the course is a good strategic fit and that the Pacific Northwest is a market the company had been looking to expand into for some time.
“We are absolutely growing in strategic markets and expansion markets,” Walker said. “This club is consistent with our membership base [demographics] and quality of our portfolio.”
Walker said ClubCorp has two additional courses under a purchase agreement and is currently negotiating other acquisitions.
Canterwood is the centerpiece of a gated, upscale community, and initiation fees were at $50,000 at one point. There are 711 homes and townhomes around the course.
ClubCorp said it will invest $1 million into capital improvements on the property. The club had deferred some upgrades and maintenance when the economy turned sour.
“We’re looking to put in a sizable capital investment and removing some of the financial instability of the club,” Mark Burnett, executive vice president at Clubcorp told the Dallas Morning News.
Walker said ClubCorp will invest in fitness, interior design and some course improvements.
ClubCorp bought three Long Island, New York courses in June — the Hamlet Golf & Country Club in Commack, Willow Creek Golf & Country Club in Mount Sinai and Wind Watch Golf & Country Club in Hauppauge.