Most residential developers look for suitable land at
an affordable cost in metropolitan areas to develop into housing. This
can be for single family house lots, multi-family housing, condominiums,
apartments, townhouses, other types of housing and a mix of these.
Often large undeveloped parcels in urban areas are scarce and/or very
expensive.
Opportunities for Developers
In and near many populated areas throughout
the U.S. during the 1990s and early 21st century, there have
been a number of new golf courses opened for play. Since 2000 the
number of golfers and rounds played has not grown significantly, in
fact, during these years those totals have decreased in some places.
This has caused some older membership clubs and privately-owned public
courses to lose annual play. Because of the competition, even some
newer courses have struggled to find enough players to be profitable or
even pay their expenses. The result is that some golf courses are
forced or have decided to put their land up for sale. Golf club/course
management companies have taken over the operation of some of these
facilities. However with a not large enough golfer market, in some
cases interested course operators cannot be found. So golf courses have
gone on sale for other uses.
New Type Golf Courses with Housing
In the years ahead, housing developers could be
buying other golf club and course properties. But several things could
stand in the way of golf holes being converted to home sites. One is
that existing zoning preventing housing from being built there. Each
property in each location can be different in the ability to change the
zoning or restrictions. A big talking point in favor of getting such a
change approved could be part of the property remaining as a golf
course. This would be done by downsizing the size of the course into a
smaller golf course. The resulting golf course could become nine holes
or remain 18 holes. It would likely be labeled either an executive
course or a par 3 course. An executive course consists of a mix of par
3 and par 4 holes, with a total par for nine holes of from 28 to around
32. Double those totals for an 18 hole course. A par 3 course consists
of all one-shot holes with a total par of 27 for nine holes. The holes
can be comparable in length and challenge to the par 3 holes on a
typical regular-sized golf course. Or its holes could be in the
approximate 100 yard range or less, commonly called a pitch & putt
course. P&P courses are fine for beginners, kids, older seniors,
parents wanting to play golf with their children and a golfer bringing
along a non-golfing partner. But such short holes have little lasting
interest for regular golfing groups. The appeal an executive course
offers over a par 3 course is that a driver can be hit from some of its
tees. Most golfers like to pull out their driver to achieve maximum
distance. In this same vein, the more the holes of any course are
similar to those of conventional courses, the more that course is
attractive to serious and highly skilled golfers. Naturally longer
holes and a larger number of holes do require more land.
Fairway Frontage for Housing
Another important issue in downsizing a golf course
could be the housing sold by the original developer which has frontage
on fairways and greens. There can be a possible solution to this
situation, but it’s dependent on the configuration of the course and
entire development. If it is a core golf course, meaning all the holes
are grouped together instead of stretched out similar to link sausage
with housing on both sides of many holes, new housing might be planned
only to replace interior holes. This could allow existing houses to
retain their favorable course frontage, while creating new frontage for
the proposed new housing in the center core of the property. All of
this takes careful planning of both the newly configured course and
proposed housing to meet the needs of each.
An Example of a Redeveloped Golf Course
We are likely to see more of this “shrinking” of
the size of golf courses to allow for new housing to be planned on a
portion of existing golf courses. This allows keeping a portion of the
original property as green space for recreation. A few years ago the
Shore West Company, on the west side of Cleveland, did this with the
North Olmsted Golf Course they had purchased. For that company I
redesigned this 50 year old course to continue to be open, but as a
nine-hole executive course. This freed land for what is now a housing
area named Viewpoint. Then that course was turned over to the Northern
Ohio Golf Association. The NOGA operates the course and has even built
its headquarter behind the #9 green.
Contact a Redesign Expert
Is there an opportunity for some developers in some
locations to obtain land suitable for future housing by buying and
downsizing a golf course? Yes in the right market, done by a capable
developer, where and when a good buy in an existing golf course is
available. I will be glad to analyze an existing course to see what
opportunity and challenges it presents for being made smaller for this
purpose. I am not qualified to appraise the course’s actual value or to
project the potential profit from doing this. Those functions are not
my specialty. But if you would like for me to look at a course and tell
how it could be made smaller for freeing up land for housing, just
contact me, Bill Amick, at (386) 767-1449 or
amick@iag.net.
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