Presented By: Insight Golf Propertiesinsightland.com/wp-content/uploads/ClubWest-OM.pdf16400 South...

Jon Knudson Partner

Tel: 602.385.1542

Fax: 602.381.6264

[email protected]

Insight Golf Properties

Presented By:

The information herein has been obtained from sources believed reliable.

While we do not doubt its accuracy, we have not verified it and make no

guarantee, warranty or representation about it. It is your responsibility to

independently confirm its accuracy and completeness. Any projections,

opinions, assumptions or estimates used are for example only and do not

represent the current or future performance of the property. The value of

this transaction to you depends on tax and other factors which should be

evaluated by your tax, financial and legal advisors. You and your advisors

should conduct a careful, independent investigation of the property to

determine to your satisfaction the suitability of the property for your needs.

1

1. Executive Summary

2. Financials

3. Property Photos

4. Scorecard

5. Location Maps

6. Demographics

2

1. EXECUTIVE SUMMARY

3

4

The Property: Club West Golf Club is a daily fee, 18-hole, championship length facility. Location: Club West Golf Club 16400 South 14th Avenue Phoenix, Arizona 85045 Site: Located 13 miles south of downtown Phoenix and 20 minutes from Sky Harbor International Airport, Club West is easily accessible from Interstate 10 and Loop 202. The nearby South Mountain Freeway will begin construction in 2016 and will further enhance access to the golf club. Each hole at Club West is distinctive and the course offers dramatic elevation changes in excess of 100 feet. Built on the sunny side of South Mountain, the beautiful Sonoran desert surrounds the property. Year Opened: 1993 Golf Architect: Ken Kavanaugh & Brian Whitcomb Clubhouse: The 7,000 square foot clubhouse includes a pro shop, the Lakeside Grille, office space and restrooms. Surrounding the clubhouse is a covered veranda with views of the adjacent lake and the Estrella Mountain range. With a seating capacity of 150, weddings and banquets are popular at Club West. Cart Storage: The 4,000 square foot cart storage facility is attached to the clubhouse immediately to the east. It has an 80 cart storage capacity. Maintenance The maintenance building is a 4,000 square foot metal structure that Building: includes an office, employee break room, restroom facility, storage space and a mechanic’s work area. Awards: Voted the “Best of Ahwatukee” in 2007 Rated “Top 20 In The State” by the Arizona Republic in 1993 Driving Club West offers a full length driving range with 30 hitting stations Range: near the clubhouse. With views of the South Mountain range in the distance, players hit into a natural desert area without turf. A large practice bunker and chipping green is adjacent to the range.

Peak Shoulder + Summer + Shoulder Fall

12/26-4/3 4/4-5/1 5/2-5/22 5/23-9/1 9/2-10/9 10/24-11/20 11/21-12/23

RESORT $135.00 $100.00 $100.00 $55.00 $60.00 $90.00 $110.00

BEST Internet $75.00 $55.00 $49.00 $29.00 $34.00 $49.00 $59.00

Wholesale Rate $64.00 $40.00 $35.00 $25.00 $29.00 $40.00 $50.00

CARD HOLDER $64.00 $40.00 $35.00 $25.00 $29.00 $40.00 $50.00

GOLD CARD GUEST $69.00 $45.00 $39.00 $25.00 $29.00 $45.00 $55.00

SW PGA PASS $67.50 $50.00 $42.00 $27.50 $30.00 $45.00 $55.00

Twilight 1pm 12pm 12pm 12pm 12pm 12pm 1pm

RESORT $59.00 $45.00 $45.00 $30.00 $30.00 $39.00 $49.00

Gold Card $40.00 $29.00 $25.00 $16.00 $19.00 $25.00 $39.00

GolfNow $45.00 $35.00 $29.00 $19.00 $24.00 $29.00 $44.00

Twilight 3pm 3pm 3pm 3pm 3pm 3pm 3pm

RESORT $35.00 $30.00 $30.00 $20.00 $20.00 $30.00 $30.00

Gold Card $22.00 $15.00 $15.00 $12.00 $15.00 $20.00 $21.00

Golf Now $27.00 $19.00 $15.00 $15.00 $18.00 $25.00 $26.00

Golf Course: Tee Par Yardage Rating Slope Black 72 7,142 73.1 129 Blue 72 6,585 70.0 118 White - M 72 6,200 68.6 115 Gold - M 72 4,985 63.5 104 White - W 72 6,200 75.1 123 Gold – W 72 4,985 67.6 109 Rates:

Annual Passes: A variety of annual passes and loyalty club memberships are available at Club West Golf Club. Inclusion into these programs provides discounts at owner’s other three golf courses in the Valley and in some instances, to courses managed by OB Sports. More than 2,500 players currently belong to this multi-facility membership program.

Rounds 2012 2013 2014 2015 (thru Oct) Played: 43,046 45,221 49,859 38,006

5

Irrigation The irrigation water source at Club West is potable water provided by Water: the City of Phoenix. Price per unit (defined as 748 gallons) is broken down as follows:

• $3.24 per unit – December thru March • $3.75 per unit – April, May, October, November • $4.15 per unit – June thru September

Future Water The high cost of irrigation water at Club West is a significant factor Supply: affecting profitability. The Arizona Department of Transportation (ADOT) has started searching for a new water source at the nearby Foothills Golf Club (also owned by seller) due to the recent closure of its well under eminent domain. If ADOT is able to find excess water in their exploration, it may be possible to divert it to Club West. Drilling has begun and there is a real possibility of augmenting the current potable water used for irrigation with less expensive well water in the near future. Irrigation Club West utilizes a Rainbird irrigation system with Maxi 5 and System: Freedom. Sprinklers are 47 DR and 51 DR with ISC-MAX-24 field controllers. Flowtronix pump station with three 75 hp VFD motors, one 25 hp jockey pump and one 3 hp evening pump. The station utilizes a 12” main line.

Grass Type: Greens: 328 Tifgreen Bermuda Tees/Rough/Fairways: 419 Tifway Bermuda Cart Paths: Six to seven foot wide concrete cart paths run throughout the course. Carts: The club leases 80, 2013 Yamaha, YDRA golf carts at a rate of $5,034.80 per month. The lease expires in April, 2016. Liquor License: Beer, wine and liquor are available for sale in the clubhouse and on the course. Demographics: 5-mile 10-mile 20-mile 2015 Population: 46,771 329,344 2,095,296 1-mile 3-mile 5-mile Ave Household Inc: $139,748 $133,074 $102,032

6

Financials: 2013 2014 Gross Revenue: Cost of Sales: Gross Profit: Salaries & Wages: Operating Expense: EBITDA: Price: $2,100,000

7

$2,021,424 $303,766

$1,717,658 $701,576

$1,189,304 ($173,222)

$2,217,584 $275,603

$1,941,981 $693,862

$1,219,233 $28,887

2. FINANCIAL SUMMARY

8

9

2013 & 2014 FINANCIALS SALES 2014 Budget 2013

MEMBERSHIP DUES & FEES 161,826 157,800 158,721

CLUB WEST GREEN FEES 867,800 835,000 669,468

CLUB WEST CARTS 557,353 507,000 474,100

CLUB WEST RANGE 43,093 50,000 45,420

CLUB WEST MERCHANDISE 139,403 150,000 171,494

CLUB WEST OTHER 30,146 19,500 80,028

CLUB WEST LESSONS / GOLF SCHOOL 210 1,500 2,912

CLUB WEST FOOD 208,460 250,000 214,815

CLUB WEST BEER 147,587 120,000 133,617

CLUB WEST LIQUOR 50,160 50,000 50,712

CLUB WEST WINE 9,617 14,000 18,130

CLUB WEST F&B OTHER 1,929 - 2,005

TOTAL SALES 2,217,584 2,154,800 2,021,424

COST OF SALES


CLUB WEST FOOD 95,517 95,000 92,806

CLUB WEST BEER 44,242 36,000 43,437

CLUB WEST LIQUOR 14,035 16,000 16,211

CLUB WEST WINE 3,333 4,900 4,647

TOTAL COS 275,603 271,900 303,766

PAYROLL

CLUB WEST GOLF 123,498 126,002 141,748

CLUB WEST CARTS 65,601 62,725 58,302

CLUB WEST COURSE MAINTENANCE 269,252 251,000 252,547

CLUB WEST FOOD & BEVERAGE 132,238 137,920 143,808

MEMBERSHIP - 1,500 6,646

ADMINISTRATION 82,553 80,850 79,531

BUILDING MAINTENANCE 20,722 20,975 18,994

TOTAL PAYROLL 693,862 680,972 701,576

OPERATING EXPENSES

CLUB WEST GOLF SHOP 66,246 76,150 92,390

CLUB WEST RANGE - 3,800 329

CLUB WEST CARTS 76,302 76,000 77,395




CLUB WEST BUILDING MAINTENANCE 57,250 57,310 62,384

TOTAL OPERATING EXPENSES 1,219,233 1,227,235 1,189,304

NET INCOME / (LOSS) 28,887 (25,307) (173,222)

10

SALES 2013 Budget 2012



CLUB WEST CARTS 474,100 460,000 429,532

CLUB WEST RANGE 45,420 57,000 50,901


CLUB WEST OTHER 80,028 109,500 104,286

CLUB WEST LESSONS / GOLF SCHOOL 2,912 1,500 1,437

CLUB WEST FOOD 214,815 300,000 78,556

CLUB WEST BEER 133,617 120,000 55,934

CLUB WEST LIQUOR 50,712 70,000 6,772

CLUB WEST WINE 18,130 10,000 3,795

CLUB WEST F&B OTHER 2,005 - 37,333

TOTAL SALES 2,021,424 2,135,800 1,751,518

COST OF SALES


CLUB WEST FOOD 92,806 114,000 27,962

CLUB WEST BEER 43,437 36,000 17,969

CLUB WEST LIQUOR 16,211 22,400 2,698

CLUB WEST WINE 4,647 3,500 670

TOTAL COS 303,766 288,400 152,662

PAYROLL

CLUB WEST GOLF 141,748 152,600 119,771

CLUB WEST CARTS 58,302 58,700 67,084



MEMBERSHIP 6,646 8,454 10,645



TOTAL PAYROLL 701,576 741,654 557,986

OPERATING EXPENSES


CLUB WEST RANGE 329 3,800 6,200

CLUB WEST CARTS 77,395 76,000 76,787



MEMBERSHIP - - 1,509



TOTAL OPERATING EXPENSES 1,189,304 1,137,378 1,103,003

NET INCOME / (LOSS) (173,222) (31,631) (62,133)

2012 & 2013 FINANCIALS

11

YTD 2015 FINANCIALS SALES Thru Aug 15 Budget Thru Aug 14



CLUB WEST CARTS 361,316 395,000 405,457

CLUB WEST RANGE 39,038 32,500 33,001


CLUB WEST OTHER 16,905 10,500 8,654

CLUB WEST LESSONS / GOLF SCHOOL 860 800 110

CLUB WEST FOOD 139,276 151,000 149,860

CLUB WEST BEER 97,455 102,000 103,182

CLUB WEST LIQUOR 37,953 33,000 34,789

CLUB WEST WINE 6,232 6,850 6,801

CLUB WEST F&B OTHER 628 - 1,929

TOTAL SALES 1,494,083 1,634,850 1,621,761

COST OF SALES


CLUB WEST FOOD 58,217 57,380 63,288

CLUB WEST BEER 26,483 30,600 31,411

CLUB WEST LIQUOR 12,325 10,560 8,960

CLUB WEST WINE 2,525 2,398 2,380

TOTAL COS 191,722 179,988 192,451

PAYROLL

CLUB WEST GOLF 65,595 90,830 82,335

CLUB WEST CARTS 45,119 41,120 47,240





TOTAL PAYROLL 478,039 495,410 457,040

OPERATING EXPENSES


CLUB WEST RANGE - 2,200 -

CLUB WEST CARTS 35,116 39,060 39,478





TOTAL OPERATING EXPENSES 789,661 736,365 769,206

NET INCOME / (LOSS) 34,662 223,087 203,064

3. PROPERTY PHOTOS

12

4. DEMOGRAPHICS

23

24

Population 1-mi. 3-mi. 5-mi. 2015 Male Population 4,553 18,029 49,078 2015 Female Population 4,506 18,006 49,368 % 2015 Male Population 50.26% 50.03% 49.85% % 2015 Female Population 49.74% 49.97% 50.15% 2015 Total Adult Population 6,267 24,095 69,208 2015 Total Daytime Population 7,899 27,225 76,649 2015 Total Daytime Work Population 3,540 10,347 32,104 2015 Median Age Total Population 34 34 33 2015 Median Age Adult Population 41 41 41 2015 Age 0-5 873 3,652 9,506 2015 Age 6-13 1,353 5,911 13,732 2015 Age 14-17 566 2,377 6,000 2015 Age 18-20 243 1,137 3,622 2015 Age 21-24 199 742 4,030 2015 Age 25-29 419 1,469 6,250 2015 Age 30-34 782 2,790 7,937 2015 Age 35-39 1,059 4,153 9,522 2015 Age 40-44 1,061 4,290 9,563 2015 Age 45-49 918 3,672 8,780 2015 Age 50-54 643 2,430 6,587 2015 Age 55-59 404 1,508 4,419 2015 Age 60-64 223 784 2,864 2015 Age 65-69 132 425 1,718 2015 Age 70-74 87 298 1,508 2015 Age 75-79 43 191 1,048 2015 Age 80-84 32 123 770 2015 Age 85+ 22 83 592 % 2015 Age 0-5 9.64% 10.13% 9.66% % 2015 Age 6-13 14.94% 16.40% 13.95% % 2015 Age 14-17 6.25% 6.60% 6.09% % 2015 Age 18-20 2.68% 3.16% 3.68% % 2015 Age 21-24 2.20% 2.06% 4.09% % 2015 Age 25-29 4.63% 4.08% 6.35% % 2015 Age 30-34 8.63% 7.74% 8.06% % 2015 Age 35-39 11.69% 11.52% 9.67% % 2015 Age 40-44 11.71% 11.91% 9.71% % 2015 Age 45-49 10.13% 10.19% 8.92% % 2015 Age 50-54 7.10% 6.74% 6.69% % 2015 Age 55-59 4.46% 4.18% 4.49% % 2015 Age 60-64 2.46% 2.18% 2.91% % 2015 Age 65-69 1.46% 1.18% 1.75%

25

% 2015 Age 85+ 0.24% 0.23% 0.60% 2015 White Population 7,655 30,317 72,496 2015 Black Population 338 1,378 7,103 2015 Asian/Hawaiian/Pacific Islander 649 2,506 5,214 2015 American Indian/Alaska Native 26 117 782 2015 Other Population (Inc2+Races) 390 1,717 12,850 2015 Hispanic Population 776 3,602 22,564 2015 Non-Hispanic Population 8,283 32,432 75,881 % 2015 White Population 84.51% 84.13% 73.64% % 2015 Black Population 3.73% 3.82% 7.22% % 2015 Asian/Pacific Islander 7.16% 6.95% 5.30% % 2015 American Indian/Alaskan 0.29% 0.32% 0.79% % 2015 Other (Includes 2+ Races) 4.31% 4.76% 13.05% % 2015 Hispanic Population 8.57% 10.00% 22.92% % 2015 Non-Hispanic Population 91.43% 90.00% 77.08% 2015 Non-Hispanic White 6,328 25,707 58,035 2015 Non-Hispanic Black 144 929 4,751 2015 Amer Indian/Alaska Native 52 208 987 2015 Non-Hispanic Asian 369 1,256 3,061 2015 Non-Hispanic Pacific Islander n/a 15 32 2015 Non-Hispanic Other Race 12 82 125 2015 Non-Hispanic 2+ Races 131 592 1,118 % 2015 Non-Hispanic White 89.94% 89.29% 85.21% % 2015 Non-Hispanic Black 2.05% 3.23% 6.98% % 2015 Amer Indian/Alaska Native 0.74% 0.72% 1.45% % 2015 Non-Hispanic Asian 5.24% 4.36% 4.49% % 2015 Hawaiian/Pacific Islander 0.00% 0.05% 0.05% % 2015 Non-Hispanic Other Race 0.17% 0.28% 0.18% % 2015 Non-Hispanic 2+ Races 1.86% 2.06% 1.64%

Population Change 1-mi. 3-mi. 5-mi. Total Employees n/a n/a n/a Total Establishments n/a n/a n/a 2015 Total 9,059 36,035 98,445 2015 Total Households 3,318 12,627 36,209 Population Change 1997-2015 8,328 29,981 62,541 Household Change 1997-2015 3,062 10,509 23,501 % Population Change 1997-2015 1139.26% 495.23% 174.19% % Household Change 1997-2015 1196.09% 496.18% 184.93% Population Change 2007-2015 1,542 5,020 15,770 Household Change 200-2015 670 2,241 6,838

26

% Population Change 2007-2015 20.51% 16.19% 19.07% % Households Change 2007-2015 25.30% 21.58% 23.28%

Housing 1-mi. 3-mi. 5-mi. 2015 Total Housing Units 2,927 11,014 31,178 2015 Occupied Housing Units 2,646 10,372 29,347 2015 Owner Occupied Housing Units 2,189 8,969 21,900 2015 Renter Occupied Housing Units 458 1,403 7,446 2015 Vacant Housing Units 281 642 1,832 % 2015 Occupied Housing Units 90.40% 94.17% 94.13% % 2015 Owner Occupied Hous Units 74.76% 81.43% 70.24% % 2015 Renter Occupied Hous Units 15.64% 12.74% 23.88% % 2015 Vacant Housing Units 9.60% 5.83% 5.88%

Household Income 1-mi. 3-mi. 5-mi. 2015 Median Household Income $110,863 $104,893 $78,888 2015 Per Capita Income $51,185 $46,630 $37,528 2015 Average Household Income $139,748 $133,074 $102,032 2015 Household Income < $10,000 15 98 792 2015 Income $10,000-$14,999 53 132 693 2015 Income $15,000-$19,999 26 85 1,006 2015 Income $20,000-$24,999 17 136 982 2015 Income $25,000-$29,999 38 143 1,176 2015 Income $30,000-$34,999 31 132 1,193 2015 Income $35,000-$39,999 57 199 1,284 2015 Income $40,000-$44,999 88 241 1,399 2015 Income $45,000-$49,999 29 190 1,594 2015 Income $50,000-$59,999 79 393 2,816 2015 Income $60,000-$74,999 190 814 3,885 2015 Income $75,000-$99,999 710 3,227 8,260 2015 Income $100,000-$124,999 749 2,682 4,732 2015 Income $125,000-$149,999 693 2,303 3,435 2015 Income $150,000-$199,999 313 1,168 1,840 2015 Income $200,000-$249,999 103 241 353 2015 Income $250,000-$499,999 123 434 748 2015 Household Income $500,000+ 3 12 22 2015 Household Income $200,000+ 228 687 1,123 % 2015 Income < $10,000 0.45% 0.78% 2.19% % 2015 Income $10,000-$14,999 1.60% 1.05% 1.91% % 2015 Income $15,000-$19,999 0.78% 0.67% 2.78%

27

% 2015 Income $20,000-$24,999 0.51% 1.08% 2.71% % 2015 Income $25,000-$29,999 1.15% 1.13% 3.25% % 2015 Income $30,000-$34,999 0.93% 1.05% 3.29% % 2015 Income $35,000-$39,999 1.72% 1.58% 3.55% % 2015 Income $40,000-$44,999 2.65% 1.91% 3.86% % 2015 Income $45,000-$49,999 0.87% 1.50% 4.40% % 2015 Income $50,000-$59,999 2.38% 3.11% 7.78% % 2015 Income $60,000-$74,999 5.73% 6.44% 10.73% % 2015 Income $75,000-$99,999 21.40% 25.55% 22.81% % 2015 Income $100,000-$124,999 22.58% 21.24% 13.07% % 2015 Income $125,000-$149,999 20.89% 18.23% 9.49% % 2015 Income $150,000-$199,999 9.44% 9.25% 5.08% % 2015 Income $200,000-$249,999 3.11% 1.91% 0.97% % 2015 Income $250,000-$499,999 3.71% 3.44% 2.07% % 2015 Income $500,000+ 0.09% 0.10% 0.06% % 2015 Income $200,000+ 6.87% 5.44% 3.10%

Retail Sales Volume 1-mi. 3-mi. 5-mi. 2015 Children/Infants Clothing $2,027,449 $7,349,412 $18,177,592 2015 Jewelry Stores $1,330,406 $4,808,486 $12,774,330 2015 Mens Clothing Stores $2,814,433 $10,201,270 $25,880,532 2015 Shoe Stores $2,848,091 $10,347,024 $25,084,202 2015 Womens Clothing Stores $4,617,892 $16,758,156 $43,859,164 2015 Automobile Dealers $29,811,796 $108,421,438 $296,852,026 2015 Automotive Parts/Acc/Repair $3,959,038 $14,368,032 $37,670,078 2015 Other Motor Vehicle Dealers $1,355,862 $4,922,792 $12,099,619 2015 Tire Dealers $998,898 $3,616,754 $9,889,801 2015 Hardware Stores $1,505,191 $5,516,413 $9,614,644 2015 Home Centers $4,031,157 $14,770,854 $34,259,966 2015 Nursery/Garden Centers $1,050,387 $3,802,580 $10,433,108 2015 Outdoor Power Equipment $269,390 $989,692 $3,207,974 2015 Paint/Wallpaper Stores $116,721 $427,711 $1,143,421 2015 Appliance/TV/Other Electronics $3,214,445 $11,638,215 $29,712,875 2015 Camera/Photographic Supplies $542,945 $1,974,178 $4,948,656 2015 Computer/Software Stores $1,493,632 $5,434,797 $14,248,183 2015 Beer/Wine/Liquor Stores $2,247,264 $8,152,682 $19,847,519 2015 Convenience/Specialty Food $6,927,693 $24,579,466 $50,107,366 2015 Restaurant Expenditures $38,376,620 $139,126,659 $275,053,680 2015 Supermarkets/Other Grocery $23,370,407 $85,008,009 $214,189,556 2015 Furniture Stores $3,167,471 $11,496,996 $29,922,439 2015 Home Furnishings Stores $2,429,879 $8,811,887 $20,964,349

28

2015 Gen Merch/Appliance/Furniture $29,035,761 $105,412,774 $269,283,563 2015 Other Gasoline Stations $15,717,965 $57,054,237 $138,635,639 2015 Department Stores excl Leased $32,250,205 $117,050,987 $298,996,435 2015 General Merchandise Stores $25,868,290 $93,915,779 $239,361,124 2015 Other Health/Personal Care $1,949,844 $7,094,547 $19,135,555 2015 Pharmacies/Drug Stores $10,909,892 $39,675,580 $101,535,313 2015 Pet/Pet Supplies Stores $1,612,281 $5,873,201 $14,714,188 2015 Book/Periodical/Music Stores $389,939 $1,398,697 $4,028,862 2015 Hobby/Toy/Game Stores $300,191 $1,144,330 $4,254,611 2015 Musical Instrument/Supplies $276,032 $1,002,325 $2,681,060 2015 Sewing/Needlework/Piece $109,274 $396,942 $938,357 2015 Sporting Goods Stores $2,794,277 $10,083,009 $21,276,356 2015 Video Tape Stores - Retail $259,610 $941,987 $2,434,461

Presented By: Insight Golf Propertiesinsightland.com/wp-content/uploads/ClubWest-OM.pdf16400 South...

Documents

Transcript of Presented By: Insight Golf Propertiesinsightland.com/wp-content/uploads/ClubWest-OM.pdf16400 South...