As golf course owners seek to avoid recession-induced closures, with shuttered courses outpacing openings in 2009, Greenberg Glusker attorneys Steven J. Lurie and Scott Thompson are actively helping owners negotiate loan extensions using novel and practical repayment plans.
“As loans mature and due dates approach, some lenders are starting to be more accommodating,” said Lurie.
Lurie and his team have represented owners and managers of more than 260 golf courses across 25 states nationwide, including such major players as Sequoia/Canongate Golf, American Golf and NGP Realty Sub.
Recently, the firm's golf practice group structured new terms for owners of major courses in Northern Nevada and San Diego County that extended the viability of their facilities.
They have worked with clients' lenders to make repayment terms more borrower-friendly and pragmatic, including basing payments on cash flows and introducing seasonal adjustments – two new approaches that Lurie believes can help borrowers survive through this stressful period in the golf industry. Additional accommodations included lowering interest rates and extending maturity dates.
Lurie notes that depressed values of real estate collateral are a major challenge for course owners as their loans come due. He urges borrowers with a looming loan maturity date to be forthcoming with their lenders and reach out before hitting a full-blown crisis.
“There is support for golf course owners and some new reason for optimism,” continued Lurie. “We're seeing opportunities amidst the trouble and there are ways for borrowers to be proactive and hang on.”
Lurie's success in closing deals during a down market was the subject of a recent profile by the Los Angeles Business Journal. The paper's “Who's Who in Real Estate” special report recognized him among a select group of 2009 powerbrokers in the region.
