Valuation and Acquisition
Frost Creek Country Club
Adams’s Rib Ranch Country Club (Now Frost-Creek) is a sprawling 2,655 acre expansive, private golf course community nestled 90 miles west of Denver just past beautiful ski resorts like Vail and Silverthorne. The 18-hole private country club includes a spectacular golf course, tennis courts, swimming facilities, plus hundreds of pristine acres utilized for hunting and world-class fly fishing, It is one of Colorado’s finest golfing communities. The Denver Post heralded THK’s clients’ acquisition of Adam’s Rib Ranch in 2015 as easily qualifying as “the real estate deal of the century in Colorado.”
THK was hired to establish the market potential for completing the acquisition and development of Adam’s Rib Ranch, which involved a financial feasibility study to determine housing and golf demand in the trade area over the next decade. The Adams Rib Ranch community included five cottages, five homes, upper and lower Ranches totaling 1,006 acres, 91 finished single-family lots, a 35-acre Ranch, an 18-hole golf course, a 40,000 sq. ft. clubhouse, a 15,500 sq. ft. maintenance center, a 510-acre Equestrian Center, along with equipment and golf carts.
Individual highest and best use appraisals were made on vacant land, while costs to complete the development of the residential lots using various cost and sales scenarios were determined. For the golf course, THK recommended membership pricing structures and projected the pace of membership sales based on competitors and golf participation rates. A cash flow analysis used initiation fees, annual dues, food and beverage expenditures, merchandise sales, guest fees, etc. to project revenues and income. The Adams Rib Ranch Country Clubs net income from operations was discounted to establish a present value and was used in conjunction with asset and land values to determine an overall value.
The golf course feasibility analysis provided THK’s clients with development and absorption projections and overall market values for Adams Rib Ranch Country Club. The feasibility analysis guided THK’s clients to unearth an undervalued golf course asset for repositioning purposes that created substantial value for their firm and investors. Details of this transaction may be found in most major newspapers in Colorado.
Featured Project: Dogwood Hills Golf Resort
Dogwood Hills Golf Resort sought to include public financing as a source of investment. THK used land values and lease rates in order to determine the property value today as compared to the property value assuming the proposed development were to be built.
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