Leisure Assets Valuation
The valuation of leisure assets in today’s market is much more complex than in the past. With financing almost non-existent, NOI / EBITDA eroding and pessimistic buyers, values have become a moving target. Today’s investors base their underwriting on actual numbers, as opposed to past investors and lenders who would buy-off on blue-sky projections.
Sources and Process
We used our extensive experience at the Leisure Investment Properties Group in valuing over a billion dollars of leisure assets. In addition, we use resources like the National Golf Foundation (NGF), the NGCOA, CoStar, interviews with investment property owners in the area, an extensive competitive survey, sales comparables, the tax assessor and other vendors to reflect a price level at which the market will execute. In order for us to drive value for an owner, we must be able to chart a course and arrive at a credible Pro Forma NOI / EBITDA that today’s investors will buy into – one that is not only realistic and achievable, but also too attractive to pass up.
Types of Valuations
In terms of golf course, resort, marina and master planned community pricing, no one will pay a top-of-the-market price unless a broker can explain how a buyer can create an above-market return and can articulate a sound exit strategy. Anyone can sell an asset for you if you lower the price enough, but the Leisure Investment Properties Group uses our marketing tools, packaging, presentation skills and underwriting capabilities to be able to execute at the top-of-the market. Every buyer in the market today is looking to steal properties. The job of the Leisure Investment Properties Group is to prevent buyers from paying “a price they want to pay, and make them pay the price they are willing to pay.” Our experience in over $3.5 billion dollars of transactions, billions of dollars in underwritten leisure assets, our leisure property management credentials, experience running leisure assets, our 22,000 investor database and marketing plan will all help serve this purpose.
We have three levels of valuations:
- A full 60-80 page valuation for sellers committed to sell
- A mini valuation for sellers evaluating their options
- A BOV letter valuation for those needing to know quickly what the asset is worth
- Master Planned Communities