The Summer 2012 Edition of Golf Inc. Magazine was recently released and features an article written by Steve Ekovich, golf course broker for Marcus & Millichap's National Golf & Resort Properties Group. In this article Steve looks to answer the question, "With Commercial Real Estate Confidences Up, Is Golf Close Behind?" In the article Steve explores the current state of the golf course investment market versus that of core commercial real estate assets, such as multi-family housing. He notes that non-core real estate assets, of which golf is one, tend to "lag behind core commercial assets," indicating that an increase in golf course values may be imminent. He defends this assertion with a list of investment factors which he believes will help increase the value of golf assets in the near future. Several reasons include the closing of under-performing courses, historically low interest rates, and the opportunity to acquire properties below replacement cost. A graph based on data collected by the National Golf & Resort Properties Group was included in a recent publication of Bloomberg News. The data in this chart, displayed below, demonstrates that golf course values have bottomed out, implying that recovery is around the corner.
Golf courses for sale are a unique asset class that must fight with traditional, core real estate properties for investment dollars. With CAP Rates for Apartments and other core real estate shrinking, investors have already begun to migrate towards golf courses and other non-core assets in a search for higher yields. Smart investors with enough capital can take advantage of the current state of the golf industry, much like investors who bought apartments between 2008 - 2010, after the market had crashed and prices bottomed out. Today those investors are selling their properties for huge profits, and the market data suggests that the same trend will hold true for investors purchasing golf courses in today's market. To view all the golf courses for sale by Steve Ekovich and the rest of the Golf Course Brokers at Marcus & Millichap's National Golf & Resort Properties Group, go to:
To view the full Golf Inc. article written by Steve, CLICK HERE
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