Triton Golf, LP
| Status | Active |
|---|---|
| Address | 1700 Kahala Sunset Drive / Spicewood, Texas 78669 |
| County | Travis |
PROPERTY PROFILE
| Parcel Number | Multiple |
|---|---|
| Acreage | 176 |
| Zoning | Golf Course |
| Unit Mix | Residential & Golf Course |
FINANCIAL INFORMATION
| Purchase Date | April 2008 |
|---|---|
| Purchase Price | $4,500,000 |
| Total Cost | $8,000,000 |
| Estimated Site Development Cost | $2,500,000 |
| Estimated Site Rehab Cost | $1,000,000 |
| Average Annual Return | ~28.4% |
| IRR | 24.9% |
| Sales Date | Not Sold |
|---|---|
| Property Status | TBD |
Triton Golf, LP is purchasing, at a significant discount, Lakecliff Country Club and up to 20 adjacent residential lots. This acquisition presents a unique opportunity to participate in the purchase, development and redefinition of a premiere Austin, TX golf course. Investors in Triton Golf, LP will share ownership of a championship golf course, clubhouse and multiple residential lots located in an exclusive planned development on the shores of Lake Travis, approximately 30 miles west of Austin, Texas.
Lakecliff Country Club is located within one of Greater Austin’s fastest growing and more affluent areas. It is a private, gated community with an 18-hole Arnold Palmer Championship Golf Course and, while not included in the purchase, a World Class Racquet Club with red clay, grass and hard surface tennis courts. The location on the south shore of Lake Travis permits immediate access to many Texas hill country water sports. West of the property is Barton Creek Lakeside, another Arnold Palmer Championship Golf Course, that is part of the Barton Creek Resort Family. Both Lakeside and Lakecliff were developed by Bobby Day, a long-time resident and golf lover in the Austin area.
Triton negotiated the purchase of up to 20 golf course residential building lots, at prices far below current market value. These properties will be marketed and sold at prevailing market rates over the near term, providing additional revenue flow.
Triton’s investment plan benefits from its successful entry into the sports and fitness facility business with its purchase and management of Triton Sports Center in San Antonio. Many of the fundamentals are similar to those at Lakecliff, such as the opportunity for increasing membership and revenue growth. Golf memberships are planned to increase from the current level of 54 to 450 over several years. Additionally, Triton-sponsored events such as the Heisman Winners Association and Grid Iron Greats annual golf tournaments will be played at the Lakecliff, increasing club recognition and memberships.
In addition to sharing the lakefront with Barton Creek Lakeside, there are several new housing developments encompassing nearly 1,300 acres immediately adjacent to the property in various stages of planning. Future water rights may be negotiated with the developers utilizing Lakecliff’s own water access on Lake Travis and which may further add value to the investment. Additional growth further east along 71 is the Sweetwater Lazy 9 Ranch with its own development of 1,800 homes on 1,000 acres. Since the Lower Colorado River Authority (LCRA) is involved at all levels of projected growth in Central Texas, they estimate that water will be needed by an additional 43,000 homes by the year 2035. Currently, population in the Spicewood and Lakeway area is approximately 22,000.
As part of its long range plans for Lakecliff, Triton Golf, LP will construct a new clubhouse facility with a scheduled completion date of 2010. The new clubhouse may include a pool & cabana, health club, spa, and dining & lounge facilities. The existing club will be renovated to hold the club’s golf facilities, including new locker rooms for men & women and an improved golf shop. Additional monies will be used to repair any deferred maintenance items related to golf courses.
With the construction of the new club house and pool facility there will be additional membership revenue opportunities through the sales of social memberships. Social members are planned to have access to all the non-golf club facilities such as the pool and cabana, health club, spa, dining, and lounge facilities. Tennis memberships may also be available as Triton continues to work out a beneficial relationship with the adjacent Racquet Club.
Triton’s investment exit strategy for Lakecliff Country Club is approximately five to ten years, dependent upon market conditions that allow for optimum payout. This includes the possibility for the sale of Lakecliff into Triton’s Sports Fund. Triton anticipates annual distributions once redevelopment is complete and operating income is stabilized.
Triton Golf, LP has hired NORAM, a golf consulting company based in Austin, to serve as management consultants during the initial phase of transition. Their role, as experienced golf club administrators, will be to advise on such issues as community agreements, permits/licenses, market research, and current irrigation and facility review. Further consulting services may be requested as the initial transition changes to design and construction implementation of the new clubhouse.
Map
Returns
| IRR | 24.9% |
|---|
Property Highlights
Lakecliff Country Club is nestled into 176 acres of gently rolling hill country in west Travis County, Texas. A short distance from Spicewood, Texas, this property borders Lake Travis and is just 30 miles northwest of Austin.
Designed by legendary golf pro, Arnold Palmer, the club features an 18-hole, PGA, par 71, championship course that opened in 2003. The course is set on high bluffs overlooking Lake Travis, and is seamlessly incorporated into the natural beauty of central Texas’ rolling Hill Country. The fairways and greens are graced by a series of spring-fed streams, 12 lakes, beautiful waterfalls, sheer cliffs, deep ravines, and stone bridges. The charm and appeal of the course is exemplified by its wide Bermuda grass fairways and prized bent grass greens. During design and construction of the course, every step was taken to ensure its ability to maintain its greens in top quality condition on a year-round basis.
In addition to its championship golf facilities, Lakecliff includes a 300-yard driving range, 15-acre short game, and a putting green practice facility. The existing 6,500 square-foot clubhouse was built in 2003 with both indoor and outdoor dining and bar facilities.
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