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EXECUTIVE
SUMMARY
READING COUNTRY CLUB
Reading, PA
18-hole Daily-Fee Golf Course Facility
For Lease
INVESTMENT HIGHLIGHTS
❑ Alex Findlay Golf Course❑ Master Plan being commissioned❑ Close to Downtown Reading on US 422❑ National Register of Historic Places❑ Distinctive Clubhouse
Offered for Lease to qualified parties through RFP
Property Tours can be arranged through Golf Property Analysts
Golf Property Analysts has been privileged to collaborate with High Associates in marketing Reading CC for lease since July of 2019. We distributed the availability of the property for lease to our universe of 10,000+ golf industry participants and highlighted the benefits and advantages of the opportunity.
Generally, the feedback was consistent that the property needed too much capital and the RFQ limited flexibility in proposals. Some prospects were simply concerned about the recent performance of the property, combined with the risk of the lease. This document summarizes our activities and prospects and profiles those who visited the property at our “open house” on October 25th. Reportedly, one of the prospects submitted the RFQ on November 15 to the township.
Property Address 5311 Perkiomen Avenue, Exeter Township, PAType of Club Daily-Fee# of Holes 18Land Area 152± AcresCourse Architect Alex FindlayYear Built 1935Clubhouse 20,604 SF# of Rounds (2018) 16,090# of Members 16Gross Revenue (2018) $595,661
EXECUTIVE SUMMARY
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Our mission is to provide the best and most comprehensive objective golf and club propertyconsulting services available.
Golf Property Analysts (GPA) is the nation’s leading independent golf property appraisal andconsulting firm, and has broad experience in assisting clubs, HOA’s/POA’s, investors, financiers,and other interested parties with valuation, advisory and brokerage services over a widegeographic area.
We appreciate your consideration of our firm and welcome any questions you might have. Welook forward to working with you on this assignment.
Larry Hirsh
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A member of the Counselors of Real Estate (CRE), Appraisal Institute (MAI) and the Society of Golf Appraisers (SGA) Mr. Hirsh has distinguished himself and his firm as a leading provider of high quality real estate consulting and appraisal services. He is a graduate of Penn State University and a past president of the Central Pennsylvania chapter of the Appraisal Institute.
Mr. Hirsh has amassed extensive experience in the valuation and analysis of a wide variety of income and special use properties and been developed office, recreational and retail properties. Hirsh has brokered more than $135 million in golf properties. He is a certified appraiser in 13 states and broker in 7 states.
He has frequently been called on to testify as an expert witness or to serve as a litigation support consultant in matters involving real estate disputes. He has participated in cases ranging from ad-valorem taxation and condemnation to bankruptcy and environmental contamination. Hirsh has qualified as an expert witness in many jurisdictions.
Click Below for:
Qualifications: http://golfprop.com/qualifications/
Recent Publications/ Litigation: http://golfprop.com/clients/
Laurence A. Hirsh, CRE, MAI, SGA
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• Advisory
• Appraisal
• Tax Assessment Analysis
• Brokerage
• Conservation Easements
• Consulting
• Eminent Domain
• Exit Strategy Analysis
• Feasibility Analysis
• Highest and Best Use Analysis
• Litigation Support
• Market Analysis & Research
• Municipal Course Reviews
• Operational Review
• Private Club Advisory
• Purchase Price Allocation
• Strategic Planning
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We pride ourselves on timely and professional work tailor made to solve the clients’ problems. We don’t use a “cookie cutter approach” to all situations.
We are truly independent. We are not and never have been a part of a larger firm with multiple disciplines and interests. Golf courses, clubs, facilities and associated properties are our primary focus and we provide objective and sound advice to clubs, investors, owners, lenders, lawyers and fiduciaries alike.
From more than 3,500 assignments, we’ve “seen it all” and have the data and experience toassist our clients in making sound decisions. The name Golf Property Analysts represents thefinest in consulting, appraisal and brokerage services in the golf industry for nearly 40 years.We know the players. After all these years, we know where to go and who to ask to solve our clients’ problems. Our staff brings a variety of backgrounds to solve the wide variety of problems that occur in the golf business.
GPA maintains individual or corporate memberships in the following:
• Appraisal Institute (MAI)
• Counselors of Real Estate (CRE)
• Society of Golf Appraisers (SGA)
• National Golf Course Owners Association (NGCOA)
• National Club Association (NCA)
• Golf Course Superintendents Association of America (GCSAA)
Review our newsletter, “Chip Shots” at http://golfprop.com/resources/newsletter/
Why Golf Property Analysts?
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Selected Assignments• Army-Navy Country Club (VA)
• Bandon Dunes Golf Resort (OR)
• Bedford Springs Golf Resort (PA)
• Blackwolf Run GC (WI)
• Boston GC (MA)
• Caves Valley GC (MD)
• Country Club of York (PA)
• Crosby Club (CA)
• Dallas National GC (TX)
• Daufuskie Island Club (SC)
• DuPont CC (DE)
• Forsgate CC (NJ)
• Germantown CC (TN)
• Golf Club at Cape Cod (MA)
• Golf Club of New England (NH)
• Hershey Country Club (PA)
• Hidden Creek GC (NJ)
• Isleworth CC (FL)
• Lake Nona CC (FL)
• Latrobe CC (PA)
• MacArthur GC (FL)
• Metedeconk National GC (NJ)
• Mid Pines/Pine Needles (NC)
• Mountain Ridge CC (NJ)
• Newcastle GC (WA)
• Oakhurst Links (WV)
• Pete Dye GC (WV)
• Palm Aire CC (FL)
• Palm Desert CC (CA)
• Philadelphia Cricket Club (PA)
• Pocono Manor GC (PA)
• Refuge G & CC (AZ)
• Reunion Resort (FL)
• Ridge at Back Brook (NJ)
• Ritz Carlton Club Jupiter (FL)
• River Downs Golfer’s Club (MD)
• Shark’s Tooth GC (FL)
• Shipyard Golf Resort (SC)
• Sleepy Hollow CC (NY)
• Stonewall GC (PA)
• The Club at Cordillera (CO)
• The Governors Club (TN)
• The Legends Club (SC)
• The Silverleaf Club (AZ)
• The Virginian Club (VA)
• The Woodlands (MI)
• TPC Wakefield Plantation (NC)
• TPC Michigan (MI)
• TPC Piper Glen (NC)
• Treyburn CC (NC)
• Trump National GC Bedminster (NJ)
• Trump National GC Westchester (NY)
• Turnberry Isle Yacht Club (FL)
• Vellano CC (CA)
• Victoria National GC (IN)
• Washington National GC (WA)
• Washington G & CC (VA)
• Westchester CC (NY)
• Whistling Straits GC (WI)
• Williamsburg National GC (VA)
• Windemere CC (FL)
• Winged Foot GC (NY)
• Woodmoor Pines G & CC (CO)
An expanded assignment listing can be found at:http://golfprop.com/wp-content/uploads/2018/01/Highlighted-Assignment-Listing-01-05-18.pdf
Some Brokerage Assignments
• Legendary Run GC (OH)
• Wild Quail G & CC (DE)
• Downingtown GC (PA)
• Hopewell Valley GC (NJ)
• Blue Heron Pines GC (NJ)
• Stone Harbor GC (NJ)
• Broad Run GC (PA)
• Augustine GC (VA)
• Montclair CC (VA)
• Fairfax National GC (VA)
• Greystone GC (TN)
• Hollow Brook GC (NY)
• Heritage Creek GC (PA)
• Whitetail GC (PA)
• Madison Green GC (NY)
NFEEDBACK
• DESIRABLE GOLF COURSE
• LIMITED MAINTENANCE
• CAPITAL NEEDS
• VERY LARGE F & B CAPACITY (TOO BIG)• COMPETITION
• RISK OF LEASE (VS. OWN OR MGMT. CONTRACT)
• RECENT PERFORMANCE
Feedback
RECENT PERFORMANCE
Annual Revenues2018 2017 2016
Gross Revenue $595,661 $599,931 $660,018Golf Revenue $577,718 $452,764 $470,315Membership Dues $69,514 $67,291 $112,006Food & Beverage $17,943 $47,347 $33,652Pro Shop Revenue $23,462 $32,529 $44,045Pro Shop Owner Club Club Club
Course Activity2018 2017 2016
Total # of Rounds 16,090 20,319 22,139Total # of Cart Rounds 14,046 7,555 9,184% of Member Rounds 2,906 3,638 5,025% of Guest Rounds 11,414 14,852 15,614% of Outing Rounds 1,770 1,829 1,490
Club Activity2018 2017 2016
Total # of Weddings 5Average Size Weddings 100# of Other Banquets 11Avg. Size Banquets 50-100# of Golf Outings 17# of Outings Booked for upcoming year/comments:
26 Outings Booked for 2019
COMPETITIVE MARKET
MARKETING ACTIVITIES
Company CA date CA signed Pkg. sent Due Diligence Site visit
Centerton GC 9/5/2019 9/5/2019 9/5/2019
Brown Golf 9/5/2019 9/9/2019 9/9/2019
Mignatti Co. 9/5/2019 9/5/2019 9/5/2019
Individual 9/5/2019
Individual 9/5/2019 9/5/2019 9/5/2019
Anderko Golf 9/5/2019 9/5/2019 9/5/2019
GM 9/5/2019 9/5/2019 9/5/2019
Santerian Golf 9/6/2019 9/9/2019 9/9/2019
Global Turf 9/9/2019
RE Broker 9/9/2019
Caporaletti Golf 9/16/2019 9/16/2019 9/16/2019
Pope Golf 9/16/2019
Old Hickory 9/16/2019
Jaworski Golf 10/1/2019 10/1/2019 10/1/2019 10/25/2019
Landscapes Management 10/1/2019 10/1/2019 10/1/2019 10/25/2019
Resort Development Partners 10/2/2019
Individual 10/2/2019
Spirit Golf 10/2/2019 10/2/2019 10/4/2019
Olde Homestead GC 10/16/2019 10/16/2019 10/16/2019 10/25/2019
• E-Mail Blasts to 10,000 targets• Social Media (FB, LinkedIn, Twitter)• Reach out to targeted prospects• “Open House” – 10/25/2019• 20 respondents• 12 signed CA’s• 3 visits
Received numerous inquiries by phone. Some just felt there was too much competition, others too much capital required. The F & B facilities scared some potential suitors, as golf people like small percentage of F & B. If township were to do capital improvements, there’d be more interest. Parameters of RFQ too restrictive (according to some prospects)
• World’s largest golf course construction company
• Own/Operate 50± golf facilities• Experienced F & B Operator• Concerned about required capital investment• Responded by e-mail below:
Hello Larry,
Scott and I did discuss Reading CC at length, and I even thought we might propose an alternative solution. However, we were unable to allocate the resources to develop that alternative proposal during the time frame allotted.
We were able to respond to the RFP as it was outlined, merely because of the nature of the lease requirements. That format wouldn’t be something we would be interested in at this point in time.
Thank you for allowing us to participate Larry…have a great weekend!
Mark
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• Well-known Regional golf management company
• Own/Operate 7 golf facilities• Experienced F & B Operator• Submitted E-Mail below of the level of
interest:
Larry,It was a real pleasure visiting Reading Country Club on October 25th.
The property is beautiful and the history is palpable. After speaking with everyone there, and reviewing the RFQ, we feel as if the investment needed to bring the property to a profitable level is beyond what we are willing to invest at this time. If we are going to put out the kind of money that we believe the property needs, we would need to own the property.
With that being said, we would be open and willing to lease the property at a fair market value if it is ready for business. This would mean all spaces remodeled properly and ready to open: including Restaurant, Catering Spaces, Pro Shop, Golf Course, Maintenance Building, Pump House.
We are aware of the township's position and while we do not find their requests unreasonable, they are just not the right fit for our company at this time. If there is an opportunity for a lease under different circumstances, we would be ecstatic to be affiliated with this wonderful property.
Click on picture below
RESURGENT GOLF ADVISORS
• Single Course Operator• Claims significant F & B business• Submitted response to RFQ to Mr.
Granger
Click on picture below
QUESTIONS
Larry Hirsh, CRE, MAI, SGAPresidentGolf Property Analysts925 Fayette StreetConshohocken, PA [email protected]