Decreasing popularity of golf, rising memberships and higher water costs all contribute to the financial hardships facing golf courses. As an increasing number of golf courses begin to experience monetary distress, more commercial real estate developers are considering converting the courses into housing developments. In the article “Developers Eye Creative Golf Course Conversions,” Real Estate Finance and Investment Magazine turned to Steven Werth to provide insight on this trend.
“A golf course has the unique potential to redevelop in a way that reduces the number of holes and increases the number of homes,” Mr. Werth said. “It’s harder to generate meaningful revenue with membership fees or selling rounds.”
Mr. Werth emphasized in the article that though home conversion may not be possible for all golf courses, it may be an option for some. “Get an expert there early and get an expert appraisal to talk about alternative uses of the course,” he advised. “Depending on the alternative use, buyers may be more interested in the property.”