Real Estate Investors See the Green in Golf Courses
Looking for real estate bargains? Consider golf courses. Investors from Donald Trump to luxury homebuilder Toll Brothers are wagering there’s money to be made buying them. Stand-alone 18-hole golf properties in the U.S. sold for a median price of $3 million in the first nine months of last year, down from $4.5 million in 2006, according to data from broker Marcus & Millichap Real Estate Investment Services. Prices slumped after lenders including the finance arm of General Electric stopped providing money for building courses and investors in commercial mortgage-backed securities retreated amid losses on deals made at the height of the property bubble. “Lack of financing is really causing a discount to value, and investors are taking advantage,” says Steven Ekovich of Marcus & Millichap. “Golf courses may never be as cheap as they are today.”
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