Entertainment-themed golf centers and residential communities are replacing golf courses across South Florida, as golf operators weigh the rising cost of maintaining fairways and greens against the declining revenue and the game’s waning popularity nationwide.
Florida still has the highest number of 18-hole golf courses in the country, but many are barely hanging on, say industry experts.
“Less people play golf, and those who do play are playing less rounds,” says Mike Nunziata, president of Miami-based developer 13th Floor Homes. “Operators are having to cut rates to attract players. The industry is now in a place where the revenue just isn’t enough to cover the costs to maintain itself.”
Nunziata’s company has developed a niche business statewide for building residential communities on former golf courses. 13th Floor Homes currently intends to acquire the Carolina Club, an 18-hole championship golf course in Margate built in 1971, and completely transform the 140-acre facility into a 350-unit residential community with single family homes and townhouses. The proposed homes would cost about $300,000 to $400,000 each, meaning the developer could make more than $120 million in total sales.
Retirement communities are not the only type of golf course redevelopments happening in Florida. Topgolf, a Texas-based entertainment and technology-themed firm, opened its first location in Miami in 2016 and has opened or plans to open at least five Topgolf facilities in the state. In some cases, they replace existing courses.
Source: The Real Deal (03/29/18) Rabines, Amanda
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