Golf Club Atlas
GolfClubAtlas.com => Golf Course Architecture => Topic started by: Howard Riefs on July 08, 2011, 05:48:51 PM
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Matt Ginella reports that Forest Dunes (Roscommon, Mich.) went up for sale last year, with an asking price of $7 million. He mentions a "recurrring rumor of Herb Kohler to the rescue."
http://www.golfdigest.com/golf-courses/blogs/wheres-matty-g/2011/07/heres-what-i-hear.html
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Also on that same page for you bay area boys:
--Pasatiempo is extending a special offer to you for the months of July and August. You can book a tee time for only $150 with an optional cart fee of $15 from July 1 to August 31, 2011. To reserve a tee time, click the button below or call the pro shop at 831-459-9155 and mention the promo code SMR11.
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Forest Dunes is a good golf course. In fact, I like it much more than Double Eage, which has to be one of the most overrated courses that I have ever played (great condition, great service - course is average).
However, I don't know how Forest Dunes can make it in this economic environment. Simply put, it is in the middle of nowhere and is really hard to find even with a GPS. You have to be really special to overcome these obstacles and I am not sure it is that good.
Even with lodging, I think they are going to have trouble. While it is a good stop when going to Arcadia, Kingsley or Crystal Downs, I don't see many golfers staying overnight there, as compared to the alternatives.
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Why would Kohler buy Forest Dunes??
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When I played there last month, I met a member (lives in Florida and stays there during the summer) and he told me that they offered a special to get groups out. They were expecting 70-90 golfers, and 500 signed up. He said people will come if the price is right. However, all the original members and invester do not want to give it away since they are paying dues. That week they were going to have a meeting to discuss there options. He went on to say that price they offered during that special would make no sence for any member to join and pay dues.
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When I played there last month, I met a member (lives in Florida and stays there during the summer) and he told me that they offered a special to get groups out. They were expecting 70-90 golfers, and 500 signed up. He said people will come if the price is right. However, all the original members and invester do not want to give it away since they are paying dues. That week they were going to have a meeting to discuss there options. He went on to say that price they offered during that special would make no sence for any member to join and pay dues.
I think I know the deal he is referring to. For the entire month of May (weekends included), they were offering buy a round, get a round for free on a $75 green fee. A 4-some could play the course for $37.50/round. I don't think there is another top 100 golf digest course you can touch for that fee.
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I wonder how much having Troon manage the place affects their bottom line (either plus or minus).
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And.... SOLD!
Club Resort & Business reports that an investment group purchased Forest Dunes for an undisclosed amount. The new owner also ended the course's contract with Troon Golf.
http://www.clubandresortbusiness.com/2011/10/26/forest-dunes-golf-club-purchased-by-investment-group/ (http://www.clubandresortbusiness.com/2011/10/26/forest-dunes-golf-club-purchased-by-investment-group/)
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An article on the new owner's ambitious plans for Forest Dunes' "resurgence."
http://www.golfincmagazine.com/content/new-owner-forest-dunes-plans-resurgence (http://www.golfincmagazine.com/content/new-owner-forest-dunes-plans-resurgence)
In short...
-- Attract new members
-- Sell a few hundred lots for homes
-- Unload a handful of unsold homes at $2.9 million
-- Build a 22-room luxury lodge by this July
... All in remote Roscommon.
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An article on the new owner's ambitious plans for Forest Dunes' "resurgence."
http://www.golfincmagazine.com/content/new-owner-forest-dunes-plans-resurgence (http://www.golfincmagazine.com/content/new-owner-forest-dunes-plans-resurgence)
In short...
-- Attract new members
-- Sell a few hundred lots for homes
-- Unload a handful of unsold homes at $2.9 million
-- Build a 22-room luxury lodge by this July
... All in remote Roscommon.
"Ambitious" would be an understatement! Good luck to them though... :)
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Development cost $40 million to create and it was just purchased for ±$2 million, thirteen years later!
Those numbers are absolutely astonishing...
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My goodness, this sounds like a deal you get for zero and work hard to turn the assets worth zero into assets worth money over time.
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I highly recommend visiting Forest Dunes. Their super does an incredible job with the golf course and it ranks as one of my favorites.
It's easy to hit and run the many quality tracks up in this part of Michigan, but everything about FD is so good it warrants staying for a couple of nights, enjoying one of the cabins on the lake and kicking back. I had one of the best times ever there and hope to return one of these days.
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I agree with Eric. It is a must stop on any Michigan golf trip, especially since it is public. Incredibly maintained. Fantastic practice facilities right next to the clubhouse.
The strength of the course are the par 4s. #6 and #17 are both fun driveable par 4s. The front generally is played through a forest and the back is generally played through dunes. Very diverse that way. On the negative, the land is very flat and a couple of holes just missed the mark for me - #4 and #15.
Next time on the way to Kingsley, stop for a round. You won't be disappointed you did so.
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Another "Destination" golf club? I've been told that it is outstanding. How many of these type of clubs can the golfing population support? What is the NPV of mid-six figure negative cash flow for several years? Who is paying the property taxes on the improvements, unsold homes and developed lots? The $2 Million purchase price might be the smallest part of the investment; those lots better be in demand and for a handsome price.
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received this today in an email newsletter, the new owners plans for Forest Dunes
http://www.golfincmagazine.com/content/new-owner-forest-dunes-plans-resurgence (http://www.golfincmagazine.com/content/new-owner-forest-dunes-plans-resurgence)