PGA TOUR Superstore
The PGA TOUR Superstore is owned and operated by Golf & Tennis Pro Shop, Inc. Headquartered in Roswell, GA, the company’s chairman is Arthur Blank, retired Home Depot co-founder and owner of the Atlanta Falcons.
The Company is the exclusive off course/off-airport retail partner with the PGA TOUR and provides a large section of golf and tennis equipment, accessories, apparel, footwear and home décor. All stores are staffed with teaching professionals and have multiple state-of-the-art swing simulators, practice hitting bays and large putting greens. There is also an in-house club making and repair facility.
The Company currently has 27 stores located across 13 states and continues to grow.
The Company was looking for a way to generate capital in an effort to expand their business through the opening of new locations across the US. While most of their facilities were leased, the subject property currently being self-developed by the Company located in Sugarloaf, GA that was an ideal candidate for a sale leaseback.
As part of the Corporate Finance Division of Stan Johnson Co., our team was able to present & educate the owner on:
- the benefits/risks of a sale leaseback transaction
- the current state of the sale leaseback marketplace (i.e. high demand for product)
- valuation of their asset
- the marketing process and likely buyer pool
This alternative financing method allows an owner to access 100% of the market value of real estate with no restrictive debt covenants, thus being able to fully utilize and redeploy its capital to achieve their objectives of growing their company.
We executed a detailed marketing process that produced several competitive offers from both institutional and private buyers. As we further discussed the various options, the ability for the Company to negotiate a lease that was more tenant friendly and less restrictive outweighed the appeal of an institutional partner; therefore we selected a private investor who was currently in a 1031 Exchange as our ultimate buyer.
The buyer performed as expected, as we were able to obtain 100% of the asking sales price as well as closed the transaction in less than 90 days from the point of the engagement process