YEAR IN REVIEWG O L F & R E S O R T P R O P E R T I E S 20

14

CBRE Golf & Resort Transactions

JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST OCTOBERSEPTEMBER NOVEMBER DECEMBER

$265 million

Sequoia Golf Portfoliosold to Club Corp

$320 million

CNL Golf Portfolio sold to Arcis Equity Partners

$182.5 million

Park City Mountain Resort sold to Vail Resorts

$38 million

Bear Mountain & Snow Summitsold to Mammoth Mountain

Century Golf Portfolio sold to C-BONS International

$1.95 billion

Waldorf-Astoria NY under contract to Angbang Insurance Group

$219 million

American Golf Portfoliosold to Newcastle Investments

Troon Golf recapitalized by Kohlberg & Company

Heritage Golf recapitalizedby Tower Three Partners

AntiguaLand Portfolio

Grizzly Ranch California

Altamer Resort Anguilla

Mahaut Estate St. Lucia

Thousand Islands New York

S T . L U C I A C A R I B B E AN

MAHAUT ESTATE E A S T E R N

Jeff Woolson Managing Director CBRE Golf & Resort Properties

Bellwether Industry Transactions

2014 proved to be a consistent stream of Caribbean, golf, ski and second home land transactions that confirmed the return of a healthy real estate investment market. International buyers, including Chinese investors, closed on several of our listings, which bodes well for the U.S. and international economies. Our golf transactions in 2014 spanned the U.S. and Europe, including the iconic Fairmont St. Andrews in Scotland, Sonoma Golf Club in California, Sand Creek Country Club in Indiana and Thousand Islands Resort in upstate New York. As we move into 2015, several of our golf club and ski resort listings are under contract. We are excited about a full portfolio of marquee assets we will bring to market during the first half of this year.

The golf industry as a whole experienced a surge of sales activity in 2014, with private equity, hedge funds and REITs finally re-entering the space. The recapitalization of Heritage Golf and Troon Golf, plus several landmark portfolio transactions have demonstrated that investors are searching for better yields than can be achieved through conventional real estate investments. In 2015 we anticipate these trends to continue, driven by low interest rates, newly available debt and equity chasing bigger yields.

We hope you have a prosperous 2015 and please call if we can ever be of assistance. Cheers!

JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST OCTOBERSEPTEMBER NOVEMBER DECEMBER

$265 million

Sequoia Golf Portfoliosold to Club Corp

$320 million

CNL Golf Portfolio sold to Arcis Equity Partners

$182.5 million

Park City Mountain Resort sold to Vail Resorts

$38 million

Bear Mountain & Snow Summitsold to Mammoth Mountain

Century Golf Portfolio sold to C-BONS International

$1.95 billion

Waldorf-Astoria NY under contract to Angbang Insurance Group

$219 million

American Golf Portfoliosold to Newcastle Investments

Troon Golf recapitalized by Kohlberg & Company

Heritage Golf recapitalizedby Tower Three Partners

AntiguaLand Portfolio

Sonoma Golf Club California

Thousand Islands New York

Amaryllis Beach ResortBarbados

Montaluce WineryGeorgia

Fairmont St. AndrewsScotland

Land PortfolioAntigua

Sandy Bay Beach ClubBarbados

Sand Creek CC Indiana

El Conquistador Resort Arizona

Bear Valley MountainCalifornia

Ranch Club LotsMontana

Bellwether Industry Transactions

ALTAMER RESORT S H O A L B A Y W E S T , A N G U I L L A

March 2014Luxury Resort I Developable Land SO

LD

GRIZZLY RANCH LOTS P L U M A S C O U N T Y , C A L I F O R N I A

February 2014Developable Land SO

LD

SOLD

December 2014 Resort Hotel I Semi-Private Country Club

EL CONQUISTADOR RESORT EL CONQUISTADOR COUNTRY CLUBT U C S O N , A R I Z O N A

(45 Holes)

SONOMA GOLF CLUB S O N O M A , C A L I F O R N I A

May 2014Private Country Club SO

LD

ANTIGUA LAND PORTFOLIOS T . P E T E R , A N T I G U A

August 2014Developable Land SO

LD

SOLD

THOUSAND ISLANDS RESORT W E L L E S L E Y I S L A N D , N E W Y O R K

May 2014Golf Villas I Developable Land Marina I Golf Course (36 Holes)

SANDY BAY BEACH CLUB C H R I S T C H U R C H P A R I S H I B A R B A D O S

October 2014 Resort I Developable Land SO

LD

SOLD

AMARYLLIS BEACH RESORT C H R I S T C H U R C H P A R I S H , B A R B A D O S

June 2014Resort Hotel I Retail Center

THE RANCH CLUB LOTS M I S S O U L A , M O N T A N A December 2014Finished Lots

SOLD

SOLD

FAIRMONT ST. ANDREWSS T . A N D R E W S , S C O T L A N D

August 2014Luxury Golf Resort Manor Homes I Developable Land

(36 Holes)

BEAR VALLEY MOUNTAIN RESORTB E A R V A L L E Y , C A L I F O R N I A

December 2014Ski Resort SO

LD

MAHAUT ESTATE B E L V E D E R E , S T . L U C I A

March 2014Developable Land SO

LD

SOLD

SAND CREEK COUNTRY CLUBC H E S T E R T O N , I N D I A N A

October 2014Private Country Club (27 Holes)

MONTALUCE WINERY & ESTATES D A H L O N E G A , G E O R G I A July 2014Vineyard I Winery I Developable Land

SOLD

FOREIGN INVESTMENT IN THE U.S CHINESE INVESTMENT ACTIVITY IN THE U.S

2009 Through Q3 2014

From January 2009 through the 3rd quarter of 2014, U.S. commercial real estate investment from mainland China has totaled approximately $12 billion. Of that total, $9.7 billion or 78.4% has been invested since January 2013, illustrating the growing appetite for U.S. properties. Chinese investors have shown a major preference for primary gateway cities like New York, Los Angeles, San Francisco and Chicago. These four markets account for 95.8% of the total investment activity since January 2013, however Chinese investors are beginning to take advantage of opportunities in secondary and tertiary markets such as Phoenix, Baltimore, Tampa, Jacksonville and Hawaii. The preferred asset classes in these markets are multi-family, hospitality and resort properties.

INV

ES

TM

EN

T T

RE

ND

S

Asia Pacific34%

Latin America6%

Middle East12%

Canada22%

Europe26%

Q3 2014 Trailing 12 ($50 Billion Total Investment)

Sources: CBRE Research & Real Capital Analytics Sources: CBRE Research & Real Capital Analytics

$0.0

$1.5

$3.0

$4.5

$6.0

2009 2010 2011 2012 2013 2014

(Bill

ions

)

Q3 2014

HOTEL ASSET VALUE PER KEY GOLF COURSE SALES 2002 - 2014

Historical and Forecasted U.S. Hotel Sales 2004 –2016 Gross Revenue Multiples

Various metrics are used by investors and appraisers to analyze the financial performance of golf courses and resorts. Cap rates were utilized predominantly for many years until the devastating effects of the Great Recession impacted the financial performance of virtually every golf course. Over the last five years with fewer and fewer assets cash flowing, the most common metric has been the Gross Revenue Multiple (GRM). This graph reflects 58 of our golf-specific transactions since 2002, with two recent portfolio transactions (ClubCorp’s acquisition of Sequoia Golf, plus Arcis Equity Partners’ acquisition of CNL’s 48 golf clubs) added to better depict the GRM increase in 2014. We anticipate a continued increase in GRM in 2015.

Source: PKF Hospitality Research

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: CBRE Research

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F F

PKF Hospitality Research (PKF) a CBRE company, analyzed 7,000 U.S. hotel operating statements, revealing an NOI increase of more than 10% annually from 2010 to 2013. Based on the revenues projected in the November 2014 edition of PKF’s Hotel Horizons forecast, hotel NOI will continue to increase by double-digit percentages through 2016. The estimated 2014 nominal asset value of $202,789 per key is forecast to increase at a 7.7 % annual rate, due almost entirely to the resulting increases in NOI. With increasing NOI and stable cost of capital, hotel dividends should be quite attractive relative to other investment opportunities.

INV

ES

TM

EN

T T

RE

ND

S

F

Horseshoe Bay Resort, Texas

The Golf Club of Amelia Island, Florida Adam’s Rib Ranch, Colorado

Tallus - Mammoth Lakes, California

P R E V I E W20

15

Waldorf Astoria Park City, Utah Red Lodge Mountain Ski Resort, Montana

Glen Annie Golf Club, California

Mammoth Sierra Star Parcels, California The Ranch Club, Montana

Quechee Lakes, Vermont

Blue Marlin Cove, Grand Bahama Island

Sur Mer, Grand Bahama Island

CBRE GOLF & RESORT PROPERTIES www.cbre.com/golfandresort760 438 8500

CBRE GOLF & RESORT PROPERTIES 5780 Fleet Street, Suite 100Carlsbad, CA 92008

Morgan AbbottSenior Underwriter morgan.abbott@cbre.com

Jeff WoolsonManaging Director jeff.woolson@cbre.com