After acquiring Ravinia Green CC earlier in January as its first country club in the Chicago suburbs, the Dallas-based management firm is now set to add Rolling Green, which has existed as a private club for 90 years, to its portfolio.
After 90 years as an exclusive private club, Rolling Green Country Club in Arlington Heights, Ill. is being sold to ClubCorp, the Arlington Daily Herald reported. The sale is expected to be finalized this week, said Ted Stanaszek, a member of Rolling Green’s Board of Directors.
A spokeswoman told the Daily Herald on January 16 that Dallas-based ClubCorp couldn’t comment on the acquisition until it was finalized.
Rolling Green would be the second country club property that ClubCorp, which owns and operates more than 200 private golf and country clubs around the country, has acquired in the Chicago area since the beginning of 2015, after its earlier acquisition of Ravinia Green Country Club in Riverwoods, Ill. (http://clubandresortbusiness.com/2015/01/14/clubcorp-acquires-ravinia-green-cc/).
ClubCorp also owns two business clubs in downtown Chicago, the Mid-America Club in the Aon Center and the Metropolitan Club in Willis Tower.
“The market has shifted for country clubs,” Stanaszek told the Daily Herald. “For the kinds of facilities and amenities that customers are looking for today, private clubs struggle to deliver that at a price point that’s affordable.”
As Arlington Heights attracts more young families, Stanaszek added, the private club model is less attractive, especially in a town with strong municipal golf facilities that are run by the local park district.
Rolling Green was approached by ClubCorp in June and in a recent vote, 90 percent of Rolling Green’s members supported the sale, the Daily Herald reported. All 225 members of Rolling Green will be moved over to the new management.
“We see this as nothing but upside,” Stanaszek said. “We’re very excited. This is a way to keep this place thriving and also bring in a lot of fresh new faces.”
While not commenting on what Rolling Green charges for membership, Stanaszek said belonging to the club will be less expensive under ClubCorp’s ownership. “The initiation fees will be less and the monthly dues will definitely be less,” he said.
ClubCorp has committed to spend $1.5 million in the first two years on capital improvements at Rolling Green, including upgrades to the restaurant, pool, fitness center and clubhouse, Stanaszek added.
Selling to a country club company is also a good way to keep the 115-plus-acre property as green space rather than having it developed commercially, he noted.
“The last thing Arlington Heights needs is more townhouses and shopping centers,” Stanaszek told the Daily Herald. “We think the green space and family atmosphere the country club has provided for 90 years is fantastic, and we want to keep that going for another 90 years.”
Meanwhile, Crain’s Chicago Business published details of ClubCorp’s plans for Ravinia Green CC. The management firm plans to spend more than $1 million on renovations, including upgrades to the clubhouse and pool, ClubCorp’s Chief Operating Officer, Mark Burnett, told Crain’s Chicago Business.
“Chicago has been one of our target markets for a number of years,” said Burnett, who declined to disclose the purchase price for Ravinia Green. “We just think it’s a great golf market, and we’ve been looking for the right opportunity. We think Ravinia is going to be a great first club for us in the area.”
Ravinia Green has an 18-hole golf course, six tennis courts, three outdoor pools, a clubhouse with upscale and casual dining, and a playground, Crain’s Chicago Business reported. And while the club’s golf memberships have gone down to about 200, prompting a dues increase, Burnett said ClubCorp hopes to cut dues and increase membership.
“We think there’s an opportunity to be more competitive in the market, to reset the dues to a level that’s a little more competitive,” he said. “Hopefully we can drive more interest and membership growth.”
The Crain’s Chicago Business report also included comments from Joel Schneider, President of the club’s Board of Governors. While Schneider would not disclose membership prices, he said the acquisition by ClubCorp will benefit membership and the long-term viability of the club, which he said was not in financial distress.
“ClubCorp was able to come in, pay off our debt, reduce our dues and invest capital,” Schneider said. “It was a win-win for everybody.”
Before the deal, Ravinia Green had been member-owned since its founding in 1967, Crain’s Chicago Business reported. The club was not on the market; ClubCorp approached the Board, said Schneider, who also declined to disclose the purchase price.
As part of its report, Crain’s Chicago Business noted that many private clubs saw membership fall during the economic downturn, giving buyers like ClubCorp an opportunity.
“There is a number of companies out there looking to buy private clubs like [Ravinia Green],” said Chris Charnas, principal of the Evanston, Ill.-based golf course brokerage, Links Capital Advisors Inc.
“It’s a great way [for sellers] to kind of not have to deal with a lot of the hassles of owning the club, and still get to be a member and play golf,” Charnas added.
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