As an appraiser, broker & consultant, it’s always of particular interest to me why people acquire golf course properties. While (like any property) there are economical, emotional and practical reasons, a buyer’s motivation is an important element of any transaction. Below are some of the reasons I’ve seen companies or individuals purchase golf properties:

  • Economics: Golf properties, of all types can be good investments, for income or growth.
  • Preservation: Some private, member-owned clubs are purchased by either a member or group of members seeking to preserve the future of the club. This can also occur when a developer or owner of a club passes away or decides to move on from the club. This also can occur when members purchase a club owned by a developer or investor to perpetuate the club. Preservation also happens when a municipality acquires a golf course to preclude alternative development.
  • Turn-Around: When a club or course is struggling financially, potential buyers often see an opportunity to improve performance and possibly acquire at a discount.
  • Portfolio Development: Often, courses are purchased by investors seeking to grow a portfolio.
  • Redevelopment (Golf): Sometimes, courses are purchased by investors seeking to redevelop or renovate and reposition the club into a different market segment.
  • Redevelopment (Alternative Use): As we all know, many golf courses have been repurposed for alternative uses, such as residential development, data centers and commercial uses.
  • Partial Redevelopment: In some cases, courses with excess land are partially redeveloped using the remaining golf facilities as an amenity.
  • Create a Career: There are several instances I’ve observed where affluent buyers have purchased golf properties to establish a career for their children.
  • New Golfers & Junior Golfers: Some buyers simply want to promote the game in their areas and purchase courses to help develop new and junior golf programs.
  • Golf & Additional Uses: Golf courses can be employed for a variety of uses in addition to golf, such as concerts, fairs, cell towers, tree growing, sod and other things.
  • “Sex” Appeal: Golf being as popular as ever and the allure of owning one’s own golf course, there are “hobbyists” who purchase golf properties “for fun”. While they seek to make them profitable, that’s not always essential and can impact the market selling price of some properties. To some, owning a golf course is a “trophy” of economic success.

I’m certain there are other reasons people purchase golf properties, however, it is typically economics which determines market value. That said, there are circumstances where we have advised seller clients in brokerage assignments to seek more than market value. It’s not uncommon for properties to sell to atypically motivated buyers and it’s critical for sellers to recognize when those instances occur.