FOR SALE SPECIAL PURPOSE BLACK FOREST & WILDERNESS VALLEY GOLF COURSES 6500 Nicklaus Drive Gaylord, MI 49735 PRESENTED BY: FRANK JERMUSEK, JD President / Managing Director 952.820.1615 frank.jermusek@svn.com CAMERON PETERSON Senior Advisor 952.820.1688 cameron.peterson@svn.com DOUG WRIGHT, CCIM SVN InvesTek Realty, LLC Advisor 419.873.1236 X204 doug.wright@svn.com
DISCLAIMER BLACK FOREST GAYLORD, MI The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.
EXECUTIVE SUMMARY Executive Summary SALE OVERVIEWVIEW SALE PRICE: $2,050,000 CAP RATE: 14.7% 3 YEAR AVERAGE NOI: $307,965 LOT SIZE: CLUBHOUSE SIZE: 534 Acres 4,500 SF YEAR BUILT: 1971 PROPERTY DESCRIPTION Rare opportunity to own 2 complementary, adjacent and profitable golf courses. In addition to the golf related revenue, there is also an opportunity to generate an additional $100,000 in winter revenue. Designed by nationally acclaimed architect Tom Doak, Black Forest is a beautiful challenging 18-hole golf course in the vacation destination of Gaylord, Michigan. With one of the most challenging USGA slope ratings in the state of Michigan from the championship tees, Black Forest provides a challenge for any skill level. Black Forest can boast it is the highest rated in the area by Golfweek magazine and therefore benefits as one of Gaylord's most expensive courses to play. Black Forest is, however, the lowest priced course on Golfweek magazine's list of Top Courses in Michigan. Black Forest, at almost 400 acres should have many acres available to be carved off and sold as building sites. Designed by Michigan Hall of Fame member Al Watrous, Wilderness Valley is a beautiful resort style 18-hole golf course in the vacation destination of Gaylord, Michigan. With a modest USGA slope rating of 126, Wilderness Valley attracts and provides a challenge for a variety of players. Wilderness Valley offers amenities for both golfers and guests with 4,500 square foot clubhouse that hosts a pro shop, restaurant/banquet facility, bar and office. It is one of the few Gaylord courses to offer seasonal memberships. Wilderness Valley is Gaylord's value course and attracts a both local and destination golfers. LOCATION OVERVIEWVIEW Located in Northern Michigan, Gaylord is a premier Midwest destination. Only 200 miles from Detroit and 350 miles from Chicago, visitors come from all directions to experience its beauty and tranquility. Hospitality has a huge impact on the area, with 20 lodging facilities and 17 golf courses existing in the immediate area. 3
COMPLETE HIGHLIGHTS Complete Highlights PROPERTY HIGHLIGHTS Black Forest opened to national acclaim as a Top 5 new Course in US Black Forest is the highest rated course in the area by Golfweek magazine Black Forest is a par 73 that plays 7,044 yards from the Championship tees with a 147 Slope Rating Black Forest was designed by nationally acclaimed architect Tom Doak Wilderness Valley is a well manicured 18 hole resort style golf course Wilderness Valley is a Par 71 that plays 6,367 yards from the Championship tees with a 126 Slope Rating Steady Membership Sales 4,500 SF full-service clubhouse Banquet hall facility with seating for 100 guests Located in the "Golf Mecca" of Gaylord, MI 14.7% Cap Rate Property 4
CLUBHOUSE PHOTOS Clubhouse Photos 5
SECTION 1 PROPERTY INFORMATION Untapped Opportunities RENDERING FOR POSSIBLE PRO SHOP ON BLACK FOREST As the sister course to Wilderness Valley Black Forest has functioned without the use of its own pro shop. Current owners have considered building a pro shop. The rendering above is one of the options that was considered. The addition of a full service pro shop should increase the revenue generation capability of the course. Based on a report from the Golf Course Superintendent Association of America, an 18-hole golf facility, which includes bodies of water, hard structures and out-of-play areas, averages about 150 to 200 acres. Typical urban golf courses are about 110 to 120 acres, while courses in resort areas may be 170 to 190 acres. At close to 400 acres Black Forests is twice the size of a typical resort course. The additional land should provide the opportunity for the next owner to identify build-able lots and work with a developer to generate additional income from golf course lots. 6
WINTER OPPORTUNITY Winter Opportunity WINTER SPORTS From 1983 to 2011, the golf course clubhouse remained open year round to accommodate cross country skiers on groomed trails. Wilderness Valley hosted many prestigious cross country ski races including the Michigan Cup and a US Ski Team qualifier. The clubhouse also served snowmobilers that use the DNR groomed snowmobile trail system and sold fuel, food and beverage. While the winter operation was successful, for personal reasons, the current owner decided to close the clubhouse during the winter and this would be an option to generate additional revenue for the next owner. Course is 8 to 12 miles from other food/beverage/fuel options for snowmobilers who miss having a closer option. Winter operations generated approximately $100,000 in additional yearly revenue during the last few years of operation. 7
BLACK FOREST RECOGNITION Black Forest Recognition Here are a few of the numerous accolades over the years: Top 5 Modern Public Courses in Michigan - Golfweek Gaylord's Best Value - Great Lakes Golfer Reader's Survey Top 10 New Resort Course in America - Golf Digest Top 4 New Public Course in the United States - Golf Magazine Top 100 Best Modern Course in America - Golf Week & Golf Traveler Magazine Best Public Course in Northern Michigan Detroit News Best Public Course in Northern Michigan Great Lakes Golf Best Value in Michigan Golf Digest More recent recognition includes: Top 10 Best: State-by-State (Michigan) Courses You Can Play Golfweek, 2016 Top 20 Public Courses in Michigan Golf Magazine, 2016 Top 15 Best: State-by-State (Michigan) Courses You Can Play Golfweek, 2015 & 2014 Twoguyswhogolf.com describes it as: Sprawling over 360 acres, Black Forest features abundant fairway and greenside bunkers along a rolling terrain with fairways that are sculpted out of Northern Michigan forests. Slopes and mounding plus plentiful elevation changes result in frequent uneven lies with the ball often located below or above the feet, or in sidehill situations. The undulating and crowned greens are incredibly fun, and incredibly challenging. 8
GOLFER TESTIMONIALS Golfer Testimonials I have played this course multiple times, have a cottage in Gaylord so it's a home course. Absolutely love this course, the staff is amazing and extremely friendly. You really get to know these people who work the course, and they are trying their hardest to bring it back into shape. Having trouble keep up the course but they are doing everything they can! This is an amazing challenging course and would pay anytime to come back. Can't wait to get back there and play again! I would recommend this course to everyone I know, beautiful challenging course for a great round. Have golfed here a number of times and the staff has always gone out of there way to accommodate us. They appreciate our business. I enjoyed the beauty, maintained fair ways/greens and the layout of the entire course, which is out in the middle of the woods. September Golf would be gorgeous! I thought the staff was well organized and offered great service. I will go back again. Really friendly staff > very attentive to all golfers. Black Forest is very challenging but fair - know your ability and play the right tee's! They seem to be working very hard to improve the course, and get it back to where it was a couple of years ago. It's a beautiful location, and I've enjoyed playing there over the years. The staff was, and always is, very helpful and friendly.. Particularly David Smith and Lorraine. We had 40 golfers, and despite heavy rain all morning, they had all the carts clean and ready to go. We have played this course many times as a large group. The staff was very friendly and handled our party without a hickup. The course is a challenging one, with fairway bunkers strategically placed. Just enough water to keep you alert. We saw wild turkey as well as deer during our round. Beautiful scenery and nice elevation changes. Great layout for the price. 9
REGIONAL MAP Regional Map Black Forest & Wilderness Valley Golf Courses 10
LOCATION MAPS Location Maps 11