Sea Island: Host to PGA Tour Event One Day, Up for Auction the Next
by Ryan Ballengee on Oct 11, 2010 3:35 PM EDT
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Robert Matre
Just a day after hosting the inaugural McGladrey Classic to rave reviews, the Sea Island resort is up for auction. Its owners filed for bankruptcy in August, citing over $1 billion in overwhelming debt. Two parties are vying for the lavish property in an Atlanta arbitration office today.
Two firms - Oaktree Capital Management of Los Angeles and Avenue Capital Group of New York - bid in partnership and agreed prior to the auction to pay $197.5 million for Sea Island's resorts, golf courses and private clubs. This group would own the property, but effectively keep things as they are.
A second group, a combo of Starwood Capital and Anschutz Entertainment, offered $1.5 million more. Both bids were rejected by a federal judge, saying the bids had to be made on the day of the auction.
This whole mess began with a misguided expansion and luxurization (made up word) that began in 2001. Sea Island Company never recouped their investment because the gamble to become the Hamptons of the South failed.
The firesale of the entire island, though, is not encapsulated within this auction. Several other side properties, largely financed through Wells Fargo (probably then-Wachovia), have been sold privately or are about to be sold.
The winner of the Monday auction will need their bid approved by Sea Island creditors and a bankruptcy judge on November 4.
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Isn't it just loverly....the bigger
is always better mentality….Course, ya gotta be honest….The whole thing was put together before the realestate bust….when the NO SALE signs went up…the house of cards came tumbeling down….STUB
so it’s better to not build anything like this just in case something goes wrong ?
"this ball will fit in that fairway"
I don’t think it was necessarily misguided to expand and try to cater more to richer clientele. It works for Pebble Beach…
It was probably just poorly executed and timed more than anything. They started during a recession (bad idea) and then a second recession drove them under. Just kinda happens.
Find me! Email: ryan@thegolfnewsnet.com, Twitter: http://twitter.com/waggleroom, or Facebook: http://facebook.com/waggleroom.
by Ryan Ballengee on Oct 11, 2010 7:59 PM EDT up reply actions
This wasn’t started during a recession. That WOULD be insane. Sea Island has been a hidden gem type of spot for decades and grew into an alternative resort area to Hilton Head. They did very well for quite a while until an unnamed government official from Arkansas pulled the rug out from under them. It really is beautiful down there. You should contact them – they might even offer a highly popular golf blogger a couple of days worth of tour and stay. The golf academy is second to none.
"this ball will fit in that fairway"
No, no, I mean the expansion began during a recession – in ’01. That was the bad timing part.
Find me! Email: ryan@thegolfnewsnet.com, Twitter: http://twitter.com/waggleroom, or Facebook: http://facebook.com/waggleroom.
by Ryan Ballengee on Oct 12, 2010 9:34 AM EDT up reply actions
Not bad advice Court
If I was Ryan I would wait until the sale is completed and the dust has settled. Then I would contact the new investors / owners, corporate relations staff and offer them a “write up” story in Waggleroom/ SB Nation about Sea Island, golf, hotels, vacations and why Sea Island is a better alternative to Hilton Head. Perhaps offer them a little free banner space in waggle room for a couple of months. Just make sure you are in the first 5 of so to aproach them with this type of offer as I am sure there are other seasoned veterens in the golf publication / on-line industry that are already thinking of the same marketing strategy. I think Feb. of 2011 would be a good time to start making your initial contact. I’d be happy to offer some assistance aquiring contact information of the people inside after the purchase is finalized.
"pain is only weakness leaving the body"
Hey Dad... If your gonna be the official
Treasurer, we’ll have the Georgia dept of Taxation send you the necessary forms to fill out….Oh, and don’t forget to include your first tax check…and Oh Yes…ya hafta file quarterly…..40% estimated right now…And don’t forget, you will also have to pay in your state of residency…Did I mention the Federal boys ? Yea, they want their cut too…Well, you all have a nice day now, hear ?..lol…STUB
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