Oakmont Golf Club in Santa Rosa, Calif. has signed a letter of intent to sell the course to the local homeowners association, which is partnering with Advance Golf Partners.
The private club informed its 260 members in February that it would be up for sale with a $4.8 million asking price. The club had lost money in four of the last six years and has about $3 million in debt.
Steve Ekovich of Marcus & Millichap, the real estate brokerage handling the sale, said there were at least eight interested parties, including foreign investors.
The golf club includes two 18-hole golf courses, a restaurant and two clubhouses on 225 acres.
The Oakmont Village Association’s bid is contingent on the board’s ability to raise the monthly dues of its 3,200 members by $23, up to $98 per month. While not all homeowners support the acquisition, residents in favor have cited studies showing that homes on or near failed golf courses lose considerable value
The members of the golf club also must approve the sale.
Oakmont Village Association would bring in Advance Golf Partners to operate the club. Advance Golf Partners, which is led by Larry Galloway, Ken Kasten and other golf industry veterans, is a golf course management and ownership company that leases and operates about a dozen courses.
It plans to invest $1 million to upgrade the club’s restaurants.