At least one and possibly two high-rise towers are expected to be built on the property by the new owners of the previously member-owned club, which opened in 1967. But the golf course is deed-restricted and can’t be touched. The “aggregate consideration” sale price was set at $22.5 million, for payments of just under $30,000 per member.
California-based Discovery Land Co. and the Wolff Co., an Arizona-based real estate private equity firm, are closing in on acquiring the Las Vegas (Nev.) Country Club, the Las Vegas Review-Journal reported. Discovery and Wolff are set to become the new owners of the historic club in early 2017, according to letters sent to the club’s membership, the Review-Journal reported.
C&RB reported last year that the club was being put up for sale: http://clubandresortbusiness.com/2015/11/23/iconic-las-vegas-cc-to-go-up-for-sale/, after club members approved that option by a vote of 383 to 69.
“It’s fair to say [Wolff] plans to build a high-rise on the site,” Gordon Digby, Las Vegas CC’s General Manager and Chief Operating Officer, told the Review-Journal. “That’s what they’ve indicated to me.
“I don’t know if it’s one tower or two towers, but the current clubhouse is zoned C-2, which means [it’s] commercial [and can be built] on.
“The golf course is deed-restricted; they can’t touch it,” Digby added.
Officials from the Wolff Co. did not return calls for comment, the Review-Journal reported, and Discovery Land officials said they could not comment at this time, given a non-disclosure period in place.
Discovery and Wolff were ultimately chosen as buyers over other contenders, the Review-Journal reported, by member voting that concluded on September 29. The club’s board and counsel then immediately started working on a purchase and sales agreement with the companies.
The winning proposal listed the “aggregate consideration” at $22.5 million and net payment per member for the club, which opened in 1967, of $29,347, the Review-Journal reported.
“This was a complex undertaking that took several weeks to complete,” Digby said in a letter sent to members, the Review-Journal reported. “With 460 member/owners, six different parcels of land and eight buildings, this was significantly more difficult than doing a PSA [purchase and sales agreement] for a home sale.
“Once the contract is signed, Wolff/Discovery will begin their due-diligence period,” Digby’s letter continued. “We expect this process to take approximately 60 days. If all goes well the club will change hands in late January or early February. In the meantime, we plan to run the club as normal.”
In a joint venture with The Howard Hughes Corp., Discovery Land is also one of the co-developers of The Summit Club, an ultra-luxury 555-acre country club community in Summerlin, Nevada, outside of Las Vegas, the Review-Journal reported.
That project involves multimillion-dollar lots that will provide access to a Tom Fazio-designed golf course.
The Las Vegas CC sale was set in motion in May 2015, the Review-Journal reported, when more than 70 percent of members decided they wanted to explore a transaction that was handled by commercial brokerage, CB Richard Ellis (CBRE)
Michael Parks, a First Vice President with CBRE, told the Review-Journal that he expects the new ownership to maintain Las Vegas CC as a private club and to invest money to upgrade the facilities.
“They are both great organizations that have exciting plans for the property,” Parks said. “It’s exciting for members of the Las Vegas Country Club and exciting for the club’s future. You have two quality groups purchasing the assets and looking to invest the capital to continue it as a premier country club in Las Vegas.
“Discovery operates all of their clubs around the country as first-class operations,” Parks added. “They will continue the legacy of the Las Vegas Country Club and make nice improvements to continue to be a first-rate country club.”
While Wolff is a multi-family developer that builds many apartments, especially on the West Coast, Parks noted, he said he did not know the company’s plans for the site.
“I don’t know the answer to that,” Parks said. “In a couple of months, there will be a lot more information. They are going through internal underwriting and planning and did not share that with us. We will know after the first of the year, after we get to the closing of the transaction.”
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