Southington Golf Club Southington Township, Ohio BASIC DESCRIPTION

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1 November 4, 2010 SOUTHINGTON GOLF CLUB: LEASE OFFERING (see OFFERING, last page) Note: All information herein is subject to change Southington Golf Club Southington Township, Ohio BASIC DESCRIPTION Southington Golf Course, covering close to 200-acres, is a 1962 built 27-hole course, formerly known as Forest Oaks Golf Club. Property is located at 4788 SR 305, Southington Township, OH in Trumbull County. The property fronts and is accessed off US 422, at the northeast quadrant of the intersection of US 422 and Sr 305. It is 10-miles north of Warren. Nearby cities include Warren, population 46,000, 16-minutes southeast (MapQuest), Cleveland, population 444,000, 57-minutes northwest (MapQuest), and Youngstown, population 81,000, 38-minutes southeast, (MapQuest). Southington Township has a 3,800+/-population. NEARBY POPULATED COUNTIES: Trumbull County Pop: 210,000 (Southington Location) Geauga County Pop: 100,000, located west side of Trumbull Lake County Pop: 237,000, located north side Cuyahoga County Pop: 1,275,700, located northwest Combined Populations: 1,822,700 GOLF COURSE INVENTORY NEAR WARREN AND SOUTHINGTON By centering from Southington Golf Course and nearby Warren we found 195 golf courses within a one-hour drive (50-miles) from downtown Warren and 69 golf courses within a 30- mile drive. We found 17 golf courses within a 10-mile drive from downtown Warren including Southington Golf Course (formerly Forest Oaks Golf Club). Radiating out 15-miles from Southington, the area golf course map (below) shows nine golf courses. We consider only four of the nine to be materially competitive to Southington. During our November 4, 2010 site and area visit we viewed two of the golf courses considered by the former ownership to be materially most competitive to Southington Golf Club. The two were Riverview Golf Club in Newton Falls, OH, and Duck Creek Golf Club with an address at Warren, Ohio. Duck Creek s owner is the son of former Southington Golf Club owner. Duck Creek Golf Club: Duck Creek, 18-holes, par , 5686-yards, is short compared to industry standards of The clubhouse appears approximately 1,000 square feet in size. The course is in good condition. Page 1 of 13

2 Riverview Golf Course: At Par , 6600 yards, Riverview is full length and appeared in good condition. The clubhouse appears to be a converted ranch style home. Riverview appears to be Southington s competitor. Other Competitors, not visited, included: Sugar Bush Golf Club ( In the 15- mile radius of Southington the only other competitive golf courses not 9-holes, or executive/par-3 courses - appear to be Sugar Bush Golf Club located approximately 8-miles west of the subject, and Old Dutch Mill Golf Course (see below). Sugar Bush is 18-holes and seems to achieve higher daily fee rates than its nearby competition. According to its web site, its greens are known to be very fast. Old Dutch Mill Golf Course ( Old Dutch Mill is an older 1952 built 18-hole golf course with a practice range lists daily rates similar to Sugar Bush. This competitor is directly south, about 15-miles, of Southington. Green fees listed among the 15-mile radius public courses range from $10.00 to $38.00 for 18-holes. Power carts are often extra. Sugar Bush fees are $10.00 higher with carts than walking fees. Page 2 of 13

3 SOUTHINGTON GOLF CLUB Southington Golf Club s most positive attributes are its location and its new log cabin style clubhouse. LOCATION Southington Golf Club is located at the intersection of US Hwy 422 and State Hwy 305 approximately 10- miles north of Warren, Ohio and 45- minutes south of Cleveland. The clubhouse pictured here, fronting on US 422, is uniquely and attractively visible by the estimated 30,000+/- vehicvles (subject to diligence) that travel US 422 daily. US Hwy 422 is the main artery between Warren and Cleveland. Map Pinpointing Southington Golf Club Location Page 3 of 13

4 With a paved parking lot in excellent condition, Southington Golf Club has immediate highway access from 4-lane US 422. From a marketing perspective, the exposure of the business to thousands of vehicles daily is a distinct competitive advantage and worth $ thousands a year in free advertising. By comparison, area competition was not easily accessible without directions. In fact during our area tour we passed the Riverview Golf Course without recognizing it. We only found our way to the golf course after stopping to ask directions. As indicated by Southington s former owners, Riverview and Duck Creek golf courses were named as their material competition. Our visits to each course found clubhouses that were well aged, small, dingy, and sparsely equipped. SOUTHINGTON GOLF COURSE LAYOUT Southington Golf Club includes 27-holes in 2 separate courses. The first course (the RED course) is an 18-hole, 6102-yard, par course. The second course (the YELLOW course) is a 9-hole, 3042-yard, par-35 golf course. Both courses are recreational type golf courses enjoyable for all player types - particularly enjoyable for seniors, women, juniors and novices. Southington can be an excellent family golf venue. It s a walk or riding golf course with 24-power carts available. Members have a storage barn to store personally owned carts. Southington Golf Club 18-hole Course Page 4 of 13

5 GOLF COURSE COMPONENTS GREENS Southington Golf Club 9-hole Score Card We toured Southington Golf Course on November 3 and 4 in cold damp weather and did not get to experience the golf course set up for play. The best attributes for the grounds are the greens, which are bent-grass and in good condition rated 6+ in a 1-10 scale. TEES The tee boxes are in varied condition, probably rated 4 on a 1-10 scale. Most holes have two or three tee boxes, FAIRWAYS The problems facing Southington Golf Club are the fairways. Non-irrigated, the Kentucky style bluegrass is inconsistent, slightly weedy, and bumpy. It was evident fairways were infected with grubs and under attack by grub eating creatures skunks and raccoons. It might take two or more pest treatments to curb the grub problem. SAND TRAPS Sand traps I viewed were all quite small, need trimming, and sand sparse in all of them. WATER FEATURES Page 5 of 13

6 Southington has seven ponds and a small stream which makes the course interesting and challenging. With an abundance of available irrigation water, the fairways may be fully and sufficiently irrigated with the addition of a full system (see irrigation). IRRIGATION Fairways not Irrigated Southington Golf Club fairways are not irrigated, as it was built before wall-to-wall irrigation was to become expected at golf courses. With piping to greens and tees, irrigation to those areas is powered by portable gas powered pumps (pictured below right). MAINTENANCE On the 1-10 scale, the maintenance equipment, storage areas, and the mechanic s comfortably heated room in the main building are rated 7+ compared to thousands of golf courses. The main maintenance building has all the tools, sharpening equipment, and spare parts that many superintendents only dream of having. Mowing and grooming machinery includes aerator, spreaders, fairway units, greens units, tractors, and power tools. Maintenance care equipment includes a Foley bed knife and reel grinder, plus an assortment of power tools. The aerator (shown left) is in demand and often borrowed from Southington by other nearby courses. Page 6 of 13

7 Rolling stock is in excellent condition. See the John Deere hydraulic dump vehicle (background). RANDOM PICTURES Page 7 of 13

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13 The Offering Briefly: Southington Golf Club, formerly known as Forest Oaks Golf Club was purchased two years ago by the current investor-owner with plans to hold the property until sewer and water services reach the property for development. However, with no golf course ownership experience, and after attempting to operate the golf course the first two years, it was realized the business would be better managed by experienced golf persons. Therefore, the decision was made to lease Southington Golf Club to an experienced and ambitious golf course person. Basically, rent is planned to be minimal - sufficient to cover the investor s barest ownership expenses. LEASE OFFERING (Subject to negotiation) Southington Golf Club is offered on a 5-year lease at a rate of only $42,000 a year on a triple-net basis. Base lease rate of $3,500 monthly will be for the first two years, and then a small percentage of revenue in access of a specific threshold of gross revenues will be added to lease payments for the following three years. For instance, beginning year 3, and applied through year 5: Base rent: $42,000 annual Plus 5% of all gross revenues generated by the property from all sources in access of $200,000 If revenue in year three is $450,000, then rent due for year three will be $42,000, plus 5% of $250,000, $12,500.00, total rent due end of year 3 = $58, The entire inventory of maintenance equipment, clubhouse furnishings, point of sale system, computers, kitchen equipment, pool table, etc., estimated value over $200,000, will be sold to the tenant separately at $2,200 monthly over 60-months, total $132,000. Lease will be for five years with an automatic renewal consistent with the terms of the original lease agreement. As lessee (tenant) you will need to show experience in the golf business and have sufficient funds to pay the first month s lease and equipment payments, plus a minimum of 3-monts lease payments into a reserve account in favor of the lessor (landlord). Final terms of the lease agreement will be subject to negotiations between lessee and lessor. Triple Net : Lessee or Tenant pays; 1- real estate taxes; 2-insurance; and all 3-fees, permits and licenses required to operate the business. If you have the ambition, work ethic and a reasonable knowledge of the golf course business contact me, Mike Kahn at: mike@golfmak.com, or call me: Please be prepared to provide your resume and references. Page 13 of 13