Bernstein & Feldman, P.A.

Providing Personal Counsel
And Representation For Over
30 Years

Turmoil in real estate market troubling for businesses

With interest in golf at a low and the market for luxury homes in turmoil as a result of the economy, land in luxury golf communities is often now available at rock-bottom prices. In one instance, amazingly enough, the owner of such a lot was willing to essentially give it away for free, and to even cover the $15,000 golf club initiation fee and first-year annual dues for the purchaser, just to get out from under the continuing expenses of owning the lot. The chaotic market for commercial real estate can lead to many problems for businesses, making the services of an experienced real estate attorney more valuable than ever.

In the last 20 years, developers have invested a large amount of money in constructing luxury golf courses surrounded by pricey homes or land on which such homes were expected to be eventually built. The expectation was that, as the huge baby boomer generation started to retire, many of them would be interested in golf as a major recreational pastime. In many instances, ownership of a home in the community surrounding such golf courses carried with it the requirement that the owner pay golf club dues, even if they did not play the game.

The fact that both the interest in golf and the general real estate market took a dip at the same time made many such projects suddenly untenable. Owners of land surrounding golf courses are, in many cases, dropping their asking prices, and the communities around the golf courses, previously trading on their image of exclusivity and being gated communities, are exploring ways to appeal to a broader range of families, constructing bowling alleys, hiking trails, or ice cream shops attractive to families with children.

Source: Wall Street Journal, "Fore Sale," Nancy Keates, July 24, 2012

· Our firm handles a wide variety of commercial real estate cases and other business law issues. If you would like to learn more about our practice, please visit our Annapolis commercial real estate page.

1 Comment

Leave a comment
Comment Information