Leisure Investment Properties Group Announces Record Breaking First Quarter 2016
TAMPA, FLORIDA May 6, 2016 – The Leisure Investment Properties Group of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced a record breaking first quarter of 2016, according to Steven Ekovich, National Managing Director, First Vice President & National Golf Director.
Since January 2016 the Leisure Investment Properties Group (LIPG) has brokered the sale of six leisure properties valued in excess of $22M. Steve Ekovich states, “In 2009, our first year, we closed one portfolio. As we enter into our 7th year, within the first 90 days we closed 6 properties, with an additional 13 properties under contract scheduled to close within the next 60 days. Trading 19 leisure properties in just under 6 months is unprecedented in our industry.” The Leisure Investment Properties Group currently has inventory of 21 golf courses valued at $188M and 9 marinas valued in excess of $53M.
The Leisure Investment Properties Group also published their semi-annual Golf & Resort Investment Report in February 2016. Highlights from this report include data showing that the average golf course value is up by 7.5% over 2014 – the third straight year-over-year improvement. The median value was also up 7.33% over 2015. What this means to golf owners is that the evidence gained through research supports that the golf industry has turned the corner and is on its way up again.
With rounds, revenue and EBITDA up again for a third straight year, we are still noticing some trepidation in the overall market. This doubt is due in part to an interest rate hike in 2015 (with more expected to follow in 2016) combined with a primary election the likes of which we’ve never seen. These issues are causing buyers to have uncertainty and doubt about the future, despite the evidence supporting improvement within the golf and leisure property industry. In the face of buyer “FUD” (Fear, Uncertainty & Doubt), LIPG has been successful in showing buyers hard data that supports our assertion that the industry is recovering. Today’s buyers that trust this data and analysis can take advantage of the discrepancy in market perception.
LIPG was founded in 2009 by Steven Ekovich and PGA Professional Christopher Karamitsos, with the support of one intern. Today, LIPG has three senior investment advisors, six additional investment advisors, a research manager, an operations manager, two financial analysts and a college intern. Focusing solely on golf courses for the first five years, LIPG moved into the marina market in 2014. The Marina Division just closed a large lake marina at a record price and continues to set the pace in the marina brokerage. Recently the LIPG has begun a greater emphasis on master planned communities and resort properties, with the eventual goal of entering into the ski-hill industry in the near future.