ClubCorp properties resell one year later for 30% more

  • Devils Ridge, Prestonwood, and Brookfield golf courses

Sculptor Capital Management, the New York hedge fund that acquired golf courses from ClubCorp last August, has sold them for a tidy profit, most likely related to golf’s strong performance in the past year. 

Spirit Realty Capital, a Texas-based real estate investment trust, acquired at least three ClubCorp courses in July: Devils Ridge Golf Course in Holly Springs, N.C., Prestonwood Country Club in Dallas and Brookfield Country Club in Roswell, Ga. 

Two of those courses, Devils Ridge and Brookfield, have known sale prices and sold for a combined $17.8 million, 36% higher than a year ago. 

ClubCorp sold an unknown number of clubs to Sculptor Capital Management as part of a deal that provided the club owner-operator with $64 million in financing in August 2020. Sculptor has $33.3 billion in assets under management, of which $4.8 billion is in real estate.

ClubCorp, which is owned by Apollo Global Management, sold the courses under a sales-leaseback agreement for 20 years, meaning that ClubCorp will continue to operate the clubs and the clubs will remain in their network. 

Companies typically use leasebacks when they need to utilize the cash invested in an asset for other purposes but still need the asset to operate their business. With a leaseback, a company gets access to capital without increasing its debt load. 

The new owner, Spirit Realty, is a net-lease real estate investment trust that focuses on single-tenant, operationally essential real estate as long-term net leases. The 20-year leaseback agreement is still in place. 

ClubCorp sold Devils Ridge for $4 million to Sculptor Capital Management in August 2020. Less than a year later, it was sold to Spirit for $6.4 million, a 60% increase. 

Brookfield Country Club was purchased by ClubCorp in 2015 for $9 million, then sold in July 2020 to Sculptor, for roughly the same price. It sold in July for $11.4 million. 

ClubCorp originally acquired Prestonwood from Henry S. Miller Companies in 2014 for $11.2 million, and after an exhaustive renovation of the property, sold the club to Sculptor in 2020 for an undisclosed sum.

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