REDSTONE GOLF PORTFOLIO AT A GLANCE The Redstone Companies enjoys a well-earned reputation as a quality real estate developer and operator of luxury golf and resort properties in the greater Houston area. Redstone’s golf portfolio includes Shadow Hawk Golf Club, The Houstonian Golf & Country Club, Redstone Golf Club and BlackHorse Golf Club. The Houstonian hosted the LPGA Tour Championship in 2009 and Redstone has been the home of the PGA TOUR’s Shell Houston Open for the last 10 years. Well-conceived and well-maintained, the Redstone golf portfolio generated more than $29.5 million in total revenue in 2012 and is budgeted for $30.8 million in 2013. These assets represent a once-in-a-lifetime opportunity to acquire some of Houston’s best private and daily fee golf clubs.
GOLF INDUSTRY ACCOLADES
10 Best New Private Clubs
Top 10 You Can Play
Golf Digest
Golf Magazine
Top 5 Private Courses
Top 100 Golf Shops
Houston Chronicle
Golf Business
One of America’s Best New Courses
Top 10 - America’s Best Courses for $100 or Less
Golf Digest
Travel + Leisure Golf
100 Best Golf Shops
#1 Daily Fee Course
Golf Business World
Houston Chronicle
Environmental Leader Private Merit Award
Environmental Leader Private Merit Award
Best Overall Public Course
50 Best Courses in Texas
Golf Digest
Golf Digest
Avid Golfer Houston
Dallas Morning News
Ultimate Public Golf Course Houston Chronicle
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
Shadow Hawk / The Houstonian www.cbremarketplace.com /shadowhawkhoustonian Redstone Golf Club www.cbremarketplace.com/redstone BlackHorse Golf Club www.cbremarketplace.com/blackhorse
FINANCIAL SUMMARY
2010
2011
2012 Redacted
Total Revenue Total Cost of Sales Gross Profit Total Expenses EBITDA Redacted
For information contact: Jeff Woolson Managing Director 760.438.8530 jeff.woolson@cbre.com
10 MILES
BLACKHORSE GOLF CLUB
Morgan Abbott Senior Underwriter 760.438.8536 morgan.abbott@cbre.com Š 2013, CBRE, Inc. and Redstone Group, Ltd. obtained this information from sources believed to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Reproduction of this document and its contents is strictly prohibited without the expressed written consent of CBRE, Inc.
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
HOUSTON INTERCONTINENTAL AIRPORT
REDSTONE GOLF CLUB
WILLIAM P. HOBBY AIRPORT SHADOW HAWK GOLF CLUB THE HOUSTONIAN GOLF & COUNTRY CLUB
Budget
2013
REDSTONE GOLF CLUB AT A GLANCE
Redstone Golf Club is one of the most recognizable golf clubs in the greater Houston area. Home of the PGA TOUR’s Shell Houston Open for the last 10 years, Redstone is being offered with its two championship golf courses (one public and one private), attractive clubhouse and expansive practice facilities that include the Dave Williams Golf Academy. Redstone is home to The First Tee of Greater Houston and approximately 50 acres are utilized by the Houston Golf Association (through an agreement between the HGA, PGA TOUR and Redstone Golf Club) for parking during the Shell Houston Open. Also included in this offering are approximately 8.5 acres of land between the clubhouse and golf academy, considered a prime hotel and condominium development site.
Holes
36 (Member/Tournament)
Total Acreage
Approximately 870 acres
Maintained Acreage
Approximately 270 acres
Operation / Year Open
Member Course: Private / 2002 Tournament Course: Daily Fee / 2004
Golf Architects
Member Course: Jim Hardy & Peter Jacobsen Tournament Course: Rees Jones & David Toms
Practice Facilities
Dave Williams Golf Academy, TaylorMade Performance Lab, Golf Fitness Studio, double-sided range with short game areas
Owner / Operator
Redstone Golf Club, LP / Redstone Golf Management
Clubhouse
Approximately 33,000 SF (opened in 2002)
Membership Fees
Refundable Charter: $35,000 + $500 monthly dues Non-Refundable Charter: $23,000 + $500 monthly dues
Private Club Members
512 dues-paying Golf Members (as of October 31, 2012)
2013 Daily Fee Rates
$175 Peak Season (March-May) includes Forecaddie, Cart + Range Balls
2011 Annual Rounds
Member Course: 23,267 Tournament Course: 22,004
Primary Water Source
Member Course: Reclaimed ($70,000 annual cost) Tournament Course: Groundwater
Maintenance Facility
Approximately 20,000 SF building / 1.5-acre yard
Maintenance Equipment 80% Leased / 20% Owned Cart Fleet
160 Club Car Precedent i2 Carts (2012) Leased through June 2016 at an annual cost of $166,312
Cart Storage
14,700 SF stand-alone building near clubhouse
Cart Paths
Concrete cart paths run continuous on both courses
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
FINANCIAL SUMMARY
2010
REDSTONE GOLF CLUB 5860 Wilson Road Humble, Texas 77396 www.redstonegolfclub.com
2011
Jeff Woolson Managing Director 760.438.8530 jeff.woolson@cbre.com Morgan Abbott Senior Underwriter 760.438.8536 morgan.abbott@cbre.com
Total Revenue Total Cost of Sales Gross Profit Total Payroll Expenses Total Operating Expenses Total Fixed Expenses Total Expenses
Daily Fee Rounds Tournament Rounds Member Rounds Member Guest Rounds Comp Rounds Total Golf Rounds Redacted Redacted 10 MILES
HOUSTON INTERCONTINENTAL AIRPORT
REDSTONE GOLF CLUB
www.cbremarketplace.com/redstone Š 2012, CBRE, Inc. and Redstone Group, Ltd. obtained this information from sources believed to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Reproduction of this document and its contents is strictly prohibited without the expressed written consent of CBRE, Inc.
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
2012
Redacted
EBITDA
For information contact:
Forecast
WILLIAM P. HOBBY AIRPORT
Budget
2013
SHADOW HAWK GOLF CLUB AT A GLANCE AND THE HOUSTONIAN GOLF & COUNTRY CLUB AT A GLANCE
Shadow Hawk Golf Club is a premium private club that delivers the ultimate golf experience. Revered in the greater Houston golf market, Shadow Hawk occupies a former pecan grove with its upscale sister club, The Houstonian Golf & Country Club. Both clubs feature elegant clubhouses and outstanding, championship golf courses designed by renowned architect Rees Jones. The Houstonian also offers resort-style swimming pools and tennis courts, as well as complete fitness and spa facilities. These two private clubs share modern maintenance and expansive practice facilities.
Holes
36
Total Acreage
Approximately 465 acres
Maintained Acreage
Approximately 300 acres
Operation / Year Open
Private / 1999 (both clubs)
Golf Architect
Rees Jones (both courses)
Practice Facilities
Double-sided range / golf academy / short game areas
Owner / Operator
Houstonian Golf, Ltd. / Redstone Golf Management
Clubhouse
Shadow Hawk: approximately 30,000 SF Houstonian: approximately 35,000 SF
2013 Membership Fees
Shadow Hawk: $65,000 (non-refundable) + $800 monthly dues Houstonian: $26,000 (non-refundable) + $525 monthly dues
Membership Levels
Shadow Hawk: 325 dues-paying Golf Members (December 2012) Houstonian: 620 dues-paying Golf & Fitness Members (December 2012)
2011 Annual Rounds
Shadow Hawk: 16,935 Houstonian: 22,930
Primary Water Source
Groundwater ($65,000 estimated cost)
Maintenance Facility
Approximately 20,000 SF building / 1.5-acre yard
Maintenance Equipment 75% Leased / 25% Owned Cart Fleet
Shadow Hawk: 60 Club Car Precedent i2 Carts (2011) Leased through October 2015 at an annual cost of $57,218 Houstonian: 80 Club Car Precedent i2 Carts (2011) Leased through October 2015 at an annual cost of $78,345
Cart Storage
Shadow Hawk: approximately 6,200 SF stand-alone building Houstonian: approximately 6,500 SF stand-alone building
Cart Paths
Concrete cart paths run continuous on both courses
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
FINANCIAL SUMMARY
2010 4100 Shadow Hawk Drive Richmond, Texas 77407 www.shadowhawkgolfclub.com
Forecast
2011
Total Revenue Total Cost of Sales Gross Profit Total Payroll Expenses Total Operating Expenses Total Fixed Expenses Total Expenses
Budget
2012
2013
Redacted
EBITDA 12610 FM 1464 Richmond, Texas 77407 www.houstoniangolf.com For information contact: Jeff Woolson Managing Director 760.438.8530 jeff.woolson@cbre.com
Member Rounds Member Guest Rounds Tournament Rounds Comp Rounds Total Golf Rounds Financial Notes: 2012 Forecast includes actual amounts through November plus budgeted amounts for December. Management fees have been deducted from fixed expenses and totaled RRedact in 2010, Redacte in 2011, Redact Reda (forecast) in 2012 and Redacte (budget) in 2013. e ed d
ed cted 10 MILES
d a ct e d
d HOUSTON INTERCONTINENTAL AIRPORT
Morgan Abbott Senior Underwriter 760.438.8536 morgan.abbott@cbre.com
www.cbremarketplace.com /shadowhawkhoustonian Š 2012, CBRE, Inc. and Redstone Group, Ltd. obtained this information from sources believed to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Reproduction of this document and its contents is strictly prohibited without the expressed written consent of CBRE, Inc.
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
WILLIAM P. HOBBY AIRPORT SHADOW HAWK GOLF CLUB THE HOUSTONIAN GOLF & COUNTRY CLUB
BLACKHORSE GOLF CLUB AT A GLANCE Holes
36 (North/South)
Total Acreage
Approximately 385 acres
Maintained Acreage
Approximately 225 acres
Operation / Year Open
Daily Fee / 2001
Golf Architects
Jim Hardy & Peter Jacobsen
Practice Facilities
Double-sided (425 x 150 yards) with teaching center and short game areas
Owner / Operator
BlackHorse Golf Club, LP / Redstone Golf Management
golf courses designed by Jim
Clubhouse
Approximately 14,400 SF (including Tournament Pavilion)
Hardy and Peter Jacobsen
2013 Membership Fees
Family > $500 initiation fee + $420 monthly dues (includes cart) Individual > $250 initiation fee + $310 monthly dues (includes cart)
Annual Membership
375 annual golf members (October 2012)
permanent pavilion that is used
2013 Daily Fee Rates
$75 / $95 (includes cart)
to host tournaments and other
2011 Annual Rounds
75,191
special events. The BlackHorse
Primary Water Source
Groundwater ($160,000 annual cost)
Maintenance Facility
Approximately 18,480 SF building / 3-acre yard
BlackHorse Golf Club is arguably the best 36-hole, public-access facility in the greater Houston area. The club features two highly-rated
that opened in 2001. The courses are complemented by an efficient clubhouse and a
Teaching Center offers first class indoor/outdoor practice facilities utilizing the latest
Maintenance Equipment 75% Leased / 25% Owned
technology. BlackHorse has
Cart Fleet
150 Club Car Precedent i2 Excel Carts (2010) Leased through August 2014 at an annual cost of $134,730
Cart Storage
Approximately 8,160 SF stand-alone building
Cart Paths
Concrete cart paths run continuous on both courses
been consistently ranked as Houston’s best daily fee facility, as well as a top tournament venue and teaching facility.
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
FINANCIAL SUMMARY
2010
12205 Fry Road Cypress, Texas 77433 www.blackhorsegolfclub.com
Forecast
2011
Total Revenue Total Cost of Sales Gross Profit Total Payroll Expenses Total Operating Expenses Total Fixed Expenses Total Expenses
2012
Redacted
EBITDA Daily Fee Rounds Tournament Rounds Member Rounds Comp Rounds Total Golf Rounds For information contact: Jeff Woolson Managing Director 760.438.8530 jeff.woolson@cbre.com Morgan Abbott Senior Underwriter 760.438.8536 morgan.abbott@cbre.com
Redacted
10 MILES HOUSTON INTERCONTINENTAL AIRPORT
BLACKHORSE GOLF CLUB
www.cbremarketplace.com/blackhorse Š 2012, CBRE, Inc. and Redstone Group, Ltd. obtained this information from sources believed to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Reproduction of this document and its contents is strictly prohibited without the expressed written consent of CBRE, Inc.
CAPITAL MARKETS | GOLF & RESORT PROPERTIES
WILLIAM P. HOBBY AIRPORT
Budget
2013