Malibu Golf Course
Property Type: Golf Course/Hospitality
Location: Malibu, CA
Size: 650 acres/28,314,000 SF
Description: 18 holes, clubhouse, maintenance building
Trigild was appointed receiver for a non-operating 18-hole golf course in Malibu, CA. Prior to the receivership, there had been two previous bankruptcy filings. The defendant originally had plans to renovate the site and secure entitlements for developments.
The property was vacant and faced a number of challenges:
- Located in an area designated as a “very high fire hazard severity zone,” it was both difficult and expensive to take the actions necessary to protect the property and bring it into fire safety compliance.
- The property had extensive outstanding balances due – over $100,000 due to the water district and over $1M was due to the county tax collector, which had the potential to negatively impact the valuation and potential sale.
- Trigild brought in a vendor to remove brush and trees in accordance with state fire regulations.
- A full-time facility manager was hired to ensure upkeep of the property
- Trigild negotiated a payment plan with the water district.
- The receiver conducted property tax research and worked with the lender to address the outstanding balance owed to the county tax collector
- Through an extensive RFP process, a reputable broker with experience in selling golf courses as well as sales through receivership was selected.
- The asset was brought into full compliance with the California Department of Forestry and Fire Protection in preparation for the successful sale.
- The facility manager maintained security and hired landscaping vendors which prevented vandalism and eliminated property hazards
- Trigild generated revenue by selling trees on the property that were removed due to fire regulations
- The negotiated installment plan on the water bill resulted in a zero balance due at the end of the sale
- The property taxes were paid, preventing a decrease in overall valuation and subsequent sale price
- The broker secured an all cash buyer for the golf course
- The property sold in receivership for $30.5 million with all entitlements in place providing the buyer with options for revitalizing the property