Peacock Gap Golf Course

We recently had the chance to sit down and interview George Lee, the General Manager for several golf courses that were devastated by the recent economic downturn. George has a unique perspective on Breakwater’s successful commercial loan workout strategies having seen firsthand other groups try to achieve the same result but unable to navigate through the various workout minefields. Here are some excerpts from that interview.

What was your challenge at the time, and how did you end up hiring Breakwater Equity?
The owner I worked for had golf courses in Arizona and I had recommended we hire Breakwater Equity Partners to help perform a commercial loan workout on those properties. But based on advice from our attorneys at the time, the owner decided that we should attempt the workouts on our own with the help of our attorneys, and that experience did not go well.

Continue reading “Unique Insights From A Commercial Loan Workout Client-Interview with George Lee” »

In these tough economic times, it appears that even players in the “sport of kings” are tightening their waistbands to the dismay of golf course owners and their financial backers. Many posh private courses have had to delay improvements, lower their membership fees, and allow public play for daily greens fees. While this has been a pleasant proposition for the public golfer, it hasn’t made the members who paid hefty membership fees during healthy economic times very happy. The combination of decreased income, increased expenses, and unhappy members has put the golf course portion of the real estate market “in the rough”.

In Arizona alone, 15 golf courses have gone into foreclosure or bankruptcy since the middle of 2008. To date, all golf courses remain open, but many have changed ownership, often at fire-sale prices. Some prestigious courses have sold for as low as ten cents on the dollar. The multi-million dollar Club West Golf Course in Phoenix was recently sold for only $500,000, less than the original price for many homes in the area. Residential properties that border golf courses are also experiencing price drops and foreclosure increases. Continue reading “Golf Course Owners in Rough Situation” »