Scottdale’s most expensive public golf course is up for sale at a price that could top $90 million.
Troon North Golf Club, a 36-hole facility that includes the nationally ranked Monument and Pinnacle courses, is being offered by Scottsdale-based Troon Golf, which owns and manages the complex located east of Pima Road off Dynamite Boulevard.
According to Troon Golf senior vice president of sales and marketing, Tim Greenwell, the asking price is “north of $90 million.’’
“I know (the price) seems out of sight, but (Troon North) makes a lot of money each year,’’ said Greenwell of the only course in Arizona that charges $295 (plus tax) to play it in peak season.
“Our board just feels like the market is ripe, that the future of the golf business is getting a lot brighter, and now might be one of the best times to sell it. But even if we find a buyer, he or they would have to agree to let us continue to manage the property on a long-term basis.’’
According to Greenwell, a real-estate company in Atlanta that usually sells hotel properties, is the broker. He declined to mention the broker’s name, but said Troon North is being “selectively shown to big companies that might be interested in this type of asset.’’
“We feel that Troon North is a trophy-type asset -- the best of the desert golf courses -- and there are not that many of those types of assets out there that people can buy,’’ he said. “And when it comes to ($90 million), there is only one course in Arizona that can push that envelope, and it’s Troon North.’’
Greenwell said the reason for selling the property is because Troon Golf is first and foremost a golf course management company. Of the 185 courses it oversees worldwide, only two -- Troon North and The Legacy in Bradenton, Fla. -- are owned by Troon Golf.
“It’s the company saying, ‘We’re not in the ownership business; we’re in the management business,’’ Greenwell pointed out. “It’s not like it’s on the open market being sold by Realty Execs or Coldwell Banker. We’re just quietly looking for a partner, and if we find that right person, that would be fantastic.’’
Greenwell said the sale includes the two courses, the 35,000-squre-foot clubhouse and the driving range. “There is not (additional) land involved, as everything has been developed out there,’’ he said.
Ed Gowan, the executive director of the Arizona Golf Association and an adviser to numerous golf course property companies, said that Troon Golf’s price tag of $90 million “might be in the ballpark.’’
“If you took a normal golf course property with that type of cash flow, I’m sure you would be looking at possibly $60 million to $70 million,’’ Gowan said. “And Troon North goes beyond the normal golf course property, so who knows?”
Gowan said that most golf courses are sold on a formula of “eight to 10 times its annual net revenues, or twice the annual gross revenues, whichever is greater.’’
“As ludicrous as it might sound, I would be surprised if the Troon North complex isn’t worth upwards of $70 million,’’ he said. “Whether or not they can get upwards of $90 million, we’ll just have to see, although I think they’re timing might be good.’’
The most expensive golf course that has been sold in north Scottsdale during the past five years has been Legend Trail Golf Club, which is a neighbor of Troon North. But Legend Trail, which is located just to the north of Troon North and has 18 holes and a state-of-the-art golf instruction center, was sold in the spring of 2004 for less than $10 million to Scottsdale Golf Group.
Rick Williams, the general manager at Legend Trail, expressed surprise when told of the $90 million price tag.
“I wish Troon Golf all the best in getting that type of number,’’ Williams said. “In fact, that would be fantastic, because it would increase the property values of all the courses in the north Scottsdale neighborhood.’’
Historically, high-end golf courses in Arizona sold for $15 million to $20 million (each) during the mid-1990s, when the golf industry was booming in Arizona. For instance, Scottsdale-based Intrawest Golf purchased the Raven at South Mountain in Phoenix, the Raven at Sabino Springs in Tucson and the Raven brand in 1998 for approximately $33 million.
But since Sept. 2001, golf course properties, and the industry in general, has been flat or even depressed. By comparison, Intrawest Golf recently began shopping the Raven at South Mountain for a reported price of $11 million. That course has yet to sell. |
