If you believe there's a link between the housing market and golf development in the United States, then good times may be just around the corner.
"While the existing home sales market is just beginning to show fluttering signs of life," writes Ann Brenhoff of Wallet Pop, "things are booming in the land sales sector."
The land rush is important because it serves as a sort of leading economic indicator for house sales. Home builders don't buy lots unless they believe they can sell them.
And today, as Brenhoff reports, all the big home builders are buying dirt-cheap lots in towns across the United States.
Two key points from the article:
First, the land rush began about a year ago, as land prices fell to levels that the builders couldn't pass on. "With land prices so low," Brenhoff writes, "competition ensued among the big builders, and now land prices are sizzling hot -- increasing monthly, even weekly in some places."
Second, the price increase is significant. Citing a report from Bloomberg, Brenhoff says that "in parts of Florida and Southern California, where prices were hit by the recessionary tsunami, some construction-ready lots are up in price more than 50% from their 2009 lows."
Finally, Brenhoff quotes a home builder who believes that the activity in land sales "suggests a confidence in the return of the market."
Here's a link to the article, called "Land Sales Leading Recovery in Housing Market, and Why You Should Care."
Friday, April 30, 2010
Thursday, April 29, 2010
the cliffs Convertible Bonds
Jim Anthony still can't sell any houses, and he's way behind schedule on building his forthcoming "signature" golf courses. But he's been able to do something that's quite extraordinary for a developer: he's cashed in on the faith of the people he's been selling houses to.
Anthony has persuaded the residents of his Cliffs communities in North and South Carolina to invest $62 million into his future -- a financial cushion that virtually guarantees his company will emerge from the recession with its assets intact.
Anthony plans to spend the money on new amenities, in particular a Gary Player-designed course at Cliffs at Mountain Park in Travelers Rest, South Carolina and a Tiger Woods-designed course at Cliffs at High Carolina in suburban Asheville, North Carolina. Construction of the courses is expected to begin within the next month or two, and the courses could open in 2012.
This is a George Bailey moment for Anthony, who these days must be thinking that it really is a wonderful life. He'd tried to secure financing from the usual sources but came up empty, or at least without terms he could live with. So, with the help of some Cliffs residents, he put together a bond issue that will provide the bondholders with a 12 percent return over seven years.
For the residents, the funding is an insurance policy. By stuffing Anthony's wallet, they ensure that he'll continue to build the golf courses, clubhouses, wellness centers, and the other amenities that will, eventually, sell more lots at the Cliffs. And if Anthony does go broke someday, well, they'll have prevented the communities from being taken over by lenders or developers who don't share the Cliffs vision.
"If [the communities] go kaput, we wind up in the club business," a resident who bought into the bond issue told the Asheville Citizen-Times. "But at least we have control of the amenities."
About 600 Cliffs residents have reportedly chosen to join the program. The average investment is said to be $130,000.
“We think this is the most important thing we’ve ever done,” Anthony told the Greenville News.
It certainly is a breakthrough. Across America these days, residents of golf communities are more likely to stand on the sidelines and watch developers wither away and die. Out West, Lyle Anderson developed some primo golf communities full of conspicuously wealthy residents who didn't lift a finger on his behalf when times got tough. Adios, Lyle! Leave the key to those Jack Nicklaus golf courses!
And when residents do get actively involved, it's usually because they're out for blood. Just ask Bobby Ginn and David Lucas, the principals of Ginn Resorts and Bonita Bay Group. On their way to bankruptcy court, they were sued by the residents of their communities, who suspect that they've been defrauded.
By contrast, Anthony has been able to convert what amounts to good will into cash on the barrel. For a developer, it's a real achievement.
CliffsCommunities.com
Anthony has persuaded the residents of his Cliffs communities in North and South Carolina to invest $62 million into his future -- a financial cushion that virtually guarantees his company will emerge from the recession with its assets intact.
Anthony plans to spend the money on new amenities, in particular a Gary Player-designed course at Cliffs at Mountain Park in Travelers Rest, South Carolina and a Tiger Woods-designed course at Cliffs at High Carolina in suburban Asheville, North Carolina. Construction of the courses is expected to begin within the next month or two, and the courses could open in 2012.
This is a George Bailey moment for Anthony, who these days must be thinking that it really is a wonderful life. He'd tried to secure financing from the usual sources but came up empty, or at least without terms he could live with. So, with the help of some Cliffs residents, he put together a bond issue that will provide the bondholders with a 12 percent return over seven years.
For the residents, the funding is an insurance policy. By stuffing Anthony's wallet, they ensure that he'll continue to build the golf courses, clubhouses, wellness centers, and the other amenities that will, eventually, sell more lots at the Cliffs. And if Anthony does go broke someday, well, they'll have prevented the communities from being taken over by lenders or developers who don't share the Cliffs vision.
"If [the communities] go kaput, we wind up in the club business," a resident who bought into the bond issue told the Asheville Citizen-Times. "But at least we have control of the amenities."
About 600 Cliffs residents have reportedly chosen to join the program. The average investment is said to be $130,000.
“We think this is the most important thing we’ve ever done,” Anthony told the Greenville News.
It certainly is a breakthrough. Across America these days, residents of golf communities are more likely to stand on the sidelines and watch developers wither away and die. Out West, Lyle Anderson developed some primo golf communities full of conspicuously wealthy residents who didn't lift a finger on his behalf when times got tough. Adios, Lyle! Leave the key to those Jack Nicklaus golf courses!
And when residents do get actively involved, it's usually because they're out for blood. Just ask Bobby Ginn and David Lucas, the principals of Ginn Resorts and Bonita Bay Group. On their way to bankruptcy court, they were sued by the residents of their communities, who suspect that they've been defrauded.
By contrast, Anthony has been able to convert what amounts to good will into cash on the barrel. For a developer, it's a real achievement.
CliffsCommunities.com
Wednesday, April 28, 2010
tiger woods The Phone Keeps Ringing
Can't say if I believe him or not, but Tiger Woods reports that his design business hasn't slacked off.
"We're still getting offers, offers all over the world to design golf courses," he said at a press conference prior to the Quail Hollow Championship. "It's just a matter of do I have time to do it."
Of course, time shouldn't be an issue. As we all know, Woods has just one active project, at Cliffs at High Carolina in Swannanoa, North Carolina. His projects in Dubai and Mexico are on ice.
Incidentally, Woods visited the High Carolina property earlier this week.
"Everything is progressing there," he said. "We just had a few environmental issues we needed to get through, some impacts, but that's all been passed, and now we've ready to go. We'll start moving dirt here pretty soon. We've got the clearance, but now we can start moving and creating a golf course."
"We're still getting offers, offers all over the world to design golf courses," he said at a press conference prior to the Quail Hollow Championship. "It's just a matter of do I have time to do it."
Of course, time shouldn't be an issue. As we all know, Woods has just one active project, at Cliffs at High Carolina in Swannanoa, North Carolina. His projects in Dubai and Mexico are on ice.
Incidentally, Woods visited the High Carolina property earlier this week.
"Everything is progressing there," he said. "We just had a few environmental issues we needed to get through, some impacts, but that's all been passed, and now we've ready to go. We'll start moving dirt here pretty soon. We've got the clearance, but now we can start moving and creating a golf course."
Tuesday, April 27, 2010
canada Revelstoke Revived
The Revelstoke resort in British Columbia has refinanced more than $100 million worth of debt and expects to ground on its Nick Faldo "signature" golf course next year.
Revelstoke has made a long climb out of a deep financial hole -- a climb that scores of similar real estate ventures hope to duplicate. The resort was on top of the world when it opened in 2007, selling condos and single-family lots as fast as the contracts could be written. Then the housing market froze solid, and it became clear that the sky wasn't the limit, even for a ski mountain with dizzying runs and a never-ending supply of snow.
The resort's original developer, a group led by Denver, Colorado-based Don Simpson, went downhill fast. To avoid being buried alive, in early 2009 Simpson sold out to one of his partners, Bob Gaglardi, the principal of Northland Properties Corporation.
Gaglardi, one of Canada's richest people, cleaned up Revelstoke's balance sheet and is now turning his attention to construction, with his top priorities reportedly being the golf course and a new ski lift.
Tom Gaglardi, Bob's son and the resort's president, said in a press statement: "All of the debt we inherited has been retired, and we are now planning for further growth."
That growth will include the usual residential options -- 550 single-family houses, 1,500 condos, 850 townhouses -- along with 2,000 hotel rooms, more than 500,000 square feet of commercial space, and Faldo's golf course, which will be co-designed by Brian Curley of Scottsdale, Arizona-based Schmidt-Curley Design.
Revelstoke had originally planned to break ground on the golf course in the spring of 2009. Now it plans to break ground on the course in 2011, with an opening tentatively scheduled for 2013.
The village of Revelstoke is located in a particularly snowy part of British Columbia, roughly a five-hour drive west of Calgary. Some 50 feet of powder typically falls on the mountain every year, although the past winter was relatively dry. By contrast, Breckenridge, Colorado, one of the premier U.S. ski areas, gets about 30 feet of snow annually.
RevelstokeMountainResort.com
Revelstoke has made a long climb out of a deep financial hole -- a climb that scores of similar real estate ventures hope to duplicate. The resort was on top of the world when it opened in 2007, selling condos and single-family lots as fast as the contracts could be written. Then the housing market froze solid, and it became clear that the sky wasn't the limit, even for a ski mountain with dizzying runs and a never-ending supply of snow.
The resort's original developer, a group led by Denver, Colorado-based Don Simpson, went downhill fast. To avoid being buried alive, in early 2009 Simpson sold out to one of his partners, Bob Gaglardi, the principal of Northland Properties Corporation.
Gaglardi, one of Canada's richest people, cleaned up Revelstoke's balance sheet and is now turning his attention to construction, with his top priorities reportedly being the golf course and a new ski lift.
Tom Gaglardi, Bob's son and the resort's president, said in a press statement: "All of the debt we inherited has been retired, and we are now planning for further growth."
That growth will include the usual residential options -- 550 single-family houses, 1,500 condos, 850 townhouses -- along with 2,000 hotel rooms, more than 500,000 square feet of commercial space, and Faldo's golf course, which will be co-designed by Brian Curley of Scottsdale, Arizona-based Schmidt-Curley Design.
Revelstoke had originally planned to break ground on the golf course in the spring of 2009. Now it plans to break ground on the course in 2011, with an opening tentatively scheduled for 2013.
The village of Revelstoke is located in a particularly snowy part of British Columbia, roughly a five-hour drive west of Calgary. Some 50 feet of powder typically falls on the mountain every year, although the past winter was relatively dry. By contrast, Breckenridge, Colorado, one of the premier U.S. ski areas, gets about 30 feet of snow annually.
RevelstokeMountainResort.com
Sunday, April 25, 2010
canada Oceanview Golf Resort
The community once called Cable Bay has a new name, and its owners hope to break ground on its “signature” golf course this year.
Oceanview Golf Resort & Spa, as the community is now called, will take shape on 420 acres in Nanaimo, the second-largest city on Vancouver Island, in British Columbia. It’s expected to consist of a marina with slips for up to 600 boats, a boutique hotel, a “wellness spa,” and an 18-hole golf course. It could also have hiking trails and a shopping area.
Of course, it’ll also have single-family houses, townhouses, villas, and condos, some of which will be designed especially for seniors. The number is still to be determined, but Cable Bay's master plan called for up to 2,677 units.
Oceanview is being developed by Cable Bay Lands, Inc., a group affiliated with Canadian Property Investments, and its principals include Wilf and Dianne Richard and George Bains. The developers plan to build an Audubon-certified golf course that will rely exclusively on organic fertilizers.
The course has been designed by Gary Browning and Wade Horrocks of Calgary-based Browning Horrocks Golf Design. The designers' portfolio includes Coyote Creek Golf Course in Sundre, Alberta; Stewart Creek Golf & Country Club in Canmore, Alberta; and Copper Point Golf Club in Invermere, British Columbia.
Public hearings on Oceanview began in January. At the initial session, Glenn Brower, Oceanview’s project manager, said that the developers hope to break ground on the golf course in 2010.
Incidentally, Nanaimo is known as “the Bathtub Racing Capital of the World.”
OceanviewGolfResort.ca
Oceanview Golf Resort & Spa, as the community is now called, will take shape on 420 acres in Nanaimo, the second-largest city on Vancouver Island, in British Columbia. It’s expected to consist of a marina with slips for up to 600 boats, a boutique hotel, a “wellness spa,” and an 18-hole golf course. It could also have hiking trails and a shopping area.
Of course, it’ll also have single-family houses, townhouses, villas, and condos, some of which will be designed especially for seniors. The number is still to be determined, but Cable Bay's master plan called for up to 2,677 units.
Oceanview is being developed by Cable Bay Lands, Inc., a group affiliated with Canadian Property Investments, and its principals include Wilf and Dianne Richard and George Bains. The developers plan to build an Audubon-certified golf course that will rely exclusively on organic fertilizers.
The course has been designed by Gary Browning and Wade Horrocks of Calgary-based Browning Horrocks Golf Design. The designers' portfolio includes Coyote Creek Golf Course in Sundre, Alberta; Stewart Creek Golf & Country Club in Canmore, Alberta; and Copper Point Golf Club in Invermere, British Columbia.
Public hearings on Oceanview began in January. At the initial session, Glenn Brower, Oceanview’s project manager, said that the developers hope to break ground on the golf course in 2010.
Incidentally, Nanaimo is known as “the Bathtub Racing Capital of the World.”
OceanviewGolfResort.ca
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