Heading into the middle of July, America’s three main stock indexes continued to reward investors with significant year-over-year gains, including the broad-based S&P 500 that was up 18 percent for the year. Ten of the S&P 500’s 11 sectors were positive for the year with real estate being the lone holdout.
Nevertheless, despite this downbeat macro real estate news fueled in part by interest rates that remain unyieldingly high, golf course assets and the golf business in general continue to be popular investment strategies. Consider a flurry of course transactions in the past few weeks alone.
Among the recent sales announced by Leisure Investment Properties Group in mid July were three George courses – private Jennings Mill Country Club and daily-fee Lane Creek Golf Club near Athens – and Country Club of Gwinnett near Augusta. The seller behind the trio of courses was regional multi-course owner, Jorge Martinez, former president of L&J Golf and principal of affiliate company Compass Golf, and an unidentified multi-course owner was the buyer.
According to LIPG’s Terence Vanek, who was the lead advisor on the transactions, Country Club of Gwinnett was successfully sold via the Ten-X online auction platform. Earlier in the month, LIPG lead advisor Chris Karamitsos also announced the sale of Meadow Oaks Golf and Country Club, an 18-hole facility north of Tampa.
To be sure, the most high-profile transaction in July was the sale of historic TPC Jasna Polana to Concert Golf Partners. Located near Princeton (N.J.) University and featuring a Gary Player-designed course and stately clubhouse mansion once owned by Johnson & Johnson heir J. Seward Johnson, the acquisition marks the 34th private club in Concert Golf’s growing portfolio.
Since turning private in 1998, Fortune 500 company leaders and captains of industry have joined Jasna Polana, given its tremendous prestige. After J. Seward Johnson died, the Piasecka Johnson family converted Jasna Polana into an exclusive private golf club, retained the PGA Tour’s TPC Network to manage the facility, and hired Player to design the 7,100-yard golf course in 1998.
Additionally, the club offers a 3.5-acre practice facility featuring a 60,000 sq. ft. practice tee, four putting greens and practice bunkers. The property today also includes event spaces, a tennis court, gardens featuring a reflecting pool, and two private lodges with 16 bedrooms for overnight accommodations.
The Piasecka Johnson heirs conducted a worldwide search for a new steward of Jasna Polana over the past decade with the help of Cushman & Wakefield, and it became clear Concert Golf was the right choice to preserve the Club.
"We sought a new owner who would not only maintain the Club but also elevate it for our members,” said Christopher Piasecki, President of Jasna Polana Golf Club. “Concert Golf clearly demonstrated a strong commitment to preserving the storied traditions and history of Jasna Polana. Their vision aligns with our dedication to providing an exceptional experience for our members, ensuring that Jasna Polana continues its legacy, and to thrive for generations to come."
It also helped Concert Golf’s private equity back, Clearlake Capital co-founder/managing partner Jose Feliciano, happens to be a Princeton alum.
"Jasna Polana will be an exceptional addition to Concert Golf Partners as the company continues to elevate its portfolio of premier, private golf clubs, and provides a unique opportunity to foster the progress and prosperity of the Princeton community," Feliciano said.
In 2020, Feliciano, with his wife Kwanza Jones, gifted $20 million to nearby Princeton University to build two dormitory buildings, contributing to the University's efforts in increasing the undergraduate student body by about 10 percent.
"We are humbled to invest in a Club with such a rich history, situated within a community that has profoundly shaped my life,” Feliciano added. “We look forward to contributing to the continued legacy and growth of the club, and the vibrant community it supports.
Concert said it plans to invest $3 million in amenities at Jasna Polana to enhance and complement the existing infrastructure, clubhouse, and golf course.
"Jasna Polana boasts an immense history, from its ties to the Piasecka Johnson family to its role in professional golf as a past host of the PGA Tour Champions and the classic Wonderful World of Golf match between Tom Watson and Hal Sutton," said Jordan Peace, Concert Golf’s senior vice president of corporate development. "We are extremely selective about the clubs we add to our portfolio, and we are honored to be the new stewards of this world-class club. Our mission is to preserve and enhance great private clubs, while honoring their culture and traditions in new and exciting ways."
Jasna Polana is an American legacy property and yet another premier private club acquired by Concert Golf, which recently picked up the Club at Pasadera in Monterey, Calif., Gaillardia Country Club (Oklahoma City), The Club at Longview (Charlotte), and The Club at Renaissance (Fort Myers, Florida).
The 46,000-square-foot clubhouse was constructed in 1975 as a private residence for Barbara Piasecka Johnson and J. Seward Johnson Sr. The mansion was designed by renowned architect Wallace Harrison, who also designed Rockefeller Center, Lincoln Center, and the United Nations Headquarters. Now it’s one of Concert Golf’s newest showcase clubhouses.
"With its rich history and status as a community staple in Princeton, Jasna Polana garnered significant interest, an exceptional 20 offers, despite current capital market conditions," said Andy Merin, Cushman & Wakefield Executive Vice Chairman. "We conducted a thorough sales process that resulted in a strong response from a variety of investors, reflecting the unique value and appeal of this property."