Repurposing Strategy Delivers Buyer to Florida Investors
National Asset Services has delivered a buyer for 34 tenant-in-common (TIC) Florida investors in Crystal Lake Golf Clubin Deerfield Beach.
The closing of the sale of the 109-acre property to a Miami-based home builder was the culmination of a long-range plan developed by NAS executives, who recognized a saturation level and downward trend of golf course usage in the area. To maximize the property’s market value, NAS guided the TIC investment group through a multiyear re-entitlement process to repurpose the property for housing development. NAS resourced a buyer for the property that worked with local contacts, over a two-year period, to gain necessary approvals that included the City of Deerfield Beach, Broward County and the State of Florida.
Reported redevelopment plans for the 109-acre, 18-hole, championship golf course, which had a rich history spanning almost fifty years, include a mix of single family homes and town homes.
NAS began working with the Crystal Lake Co-ownership Group as a consultant in 2010. NAS management later led investors through a successful, expedited disposition of Pelican Pointe Golf and Country Club in Venice, Florida, in January 2015. Pelican Pointe was part of the original investment made by the group in 2007. The sale allowed the ownership group to pay off the remainder of the original loan, allowing co-owners to assume full ownership of the Crystal Lake property, free and clear of a master lease that had been largely responsible for the economic under performance of the property. The original master lease did not include ownership of all golf cart paths, driving range T-box or putting greens. The exclusion of these three crucial areas left the Crystal Lake Golf Club virtually inoperable for its intended use. NAS management was instrumental in securing easements with the neighboring property to give access rights to these areas. These easements allowed Crystal Lake to continue operations as a functioning golf course and restored the value that would have been recognized as a loss at the time of the Pelican Pointe sale.
NAS was retained as the property’s asset management company and immediately installed a new operator at Crystal Lake, greatly improving the property’s cash flow.
“Helping our clients develop and implement a strategic, multifaceted, long range exit strategy, resulting in an overall positive yield, was truly satisfying,” commented Karen E. Kennedy, President and Founder, National Asset Solutions. “It is an example of our unique ability to enter an economic challenged situation and make a short-term impact while implementing a long-range exit strategy.”