Members Buy Desert Mountain Golf Club

by Merrill Moss on February 16, 2011

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Members Buy Desert Mountain Golf Club

Ownership of one of Scottsdale’s most exclusive private golf clubs, Desert Mountain, has been purchased from owner Crescent Real Estate Holdings by the club’s members. The purchase includes all six Jack Nicklaus-designed golf courses, the related facilities, and approximately 500 acres of undeveloped adjacent land.

The total cost of the deal was $73.5 million, paid for by financing plus a one-time $16,500 assessment of members. In addition to the assessment, members’ monthly golf membership dues have increased by $300, from $890 to $1190.

Approximately 90% of the club’s roughly 2,300 members voted on the deal, virtually all affirmatively.

The final price was about one-third of the developer’s asking price. Reportedly, the owner had hoped to obtain at least $200 million from the sale.

Members said the additional 500-acre component was a key part of the deal, because without it the owner could sell or develop adjacent land for projects that might or might not enhance the value of their typically multimillion dollar homes.

Interestingly, under the previous owners, the cost of the golf membership was pegged at $325,000 and was almost always included in the price of Desert Mountain homes. Under the new ownership of members, the cost of the golf membership has been pegged much lower, at $140,000.

Currently almost 200 homes are listed for sale in Desert Mountain, ranging in price from just under $500,000 to over $10 million. Most homes in Desert Mountain are priced well above $1 million.

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