January 1, 2018
It is common knowledge that residentialcommunity developers often hire top golf course and clubhouse architects to build a central country club amenity to anchor the community and create premium home
values. But once the lots and homes are allsold and the developer transfers the club to the members, what happens?
According to Peter Nanula of Concert Golf Partners, property values are directly
correlated to the attractiveness of the club to potential members. Elite member owned clubs such as Baltusrol Country Club in Springfield, New Jersey and Bel Air Country Club in Los Angeles have long waiting lists for membership and adjacent home values are at a premium. Home buyers pay a premium for the proximity to such established assets like these clubs. However Nanula explains that not all clubs have this kind of “halo
effect.” “Member owned clubs that want to boost neighboring home values could benefit their residential communities by securing an injection of fresh capital,” he said. “This enhances the appeal of the club to
potential members. By improving the financial picture of the club, adjacent home values increase by as much as 18 to 21 percent.” Nanula and his associates conducted a decade long study on three member owned clubs that recapitalized and invested in new amenities and golf course improvements. The Hawthorns Country Clubin Indianapolis, IN, MacGregor Downs Country Club in Cary, NC, and Golf Club of Amelia Island nearJacksonville, FL, documented an average increase in home values over a two to three year period of over$100,000.
“A member owned club does not have guaranteed success like the old days but it seems that members stand to gain financially from a successful club—both from club membership and at home,” he concluded.