Oakmont Golf Club up for sale, improvements to facilities to be part of deal
The Oakmont Golf Club will soon be for sale, the proceeds of which will pay off the club’s debt and be used to make improvements at the club and its facilities, a club official said.
The member-owned club has a long-term debt of about $3 million, said Gary Smith, Oakmont Golf Club president. A broker is putting together a marketing package, which will be ready within a couple weeks, and then the club will be listed for sale. Smith said a price has not yet been set for the 250-acre club that includes two golf courses, a restaurant and event space.
The deal will be a “typical sales transaction where the buyer assumes or pays off” the debts of the property, and the agreement will include the commitment by the buyer to invest in the improvement of the facility “in a relatively short period of time,” in the range of 12 to 18 months, Smith said.
To go through, the sale will need a 60 percent approval from the members. There are about 260 members now, which is down from 323 at the end of 2017. Dwindling membership, fewer rounds of golf played and some accounting errors are some of what led to the financial problems for the club, and why it is now for sale, said Smith.
Members have no real “equity” stake in the property, he said. The initiation fee (now $500) paid by full members gives them full golf, voting and charging privileges at the pro shop and restaurant, and discounts on merchandise and invitations to events.
There has been “some sniffing around” by potential buyers, but Smith said they aren’t entertaining offers until the broker has completed the entire package.
Oakmont Golf Club’s West Course, a par 72 course, was built in 1964 and the East Course, a par 63 executive golf course designed by Ted Robinson was built in 1973. They are located in Oakmont, an active senior community west of Kenwood.