Archive for the ‘Golf Courses’ Category

Hotel Transactions: The Rise in Activity and Tools to Help Minimize Taxes

Tuesday, April 30th, 2013

The real estate market has significantly improved since the beginning of the Great Recession, as indicated by recent year-end reports, such as the ULI Emerging Trends 2013. As the U.S. continues to see modest gains in market fundamentals, the recovery will maintain throughout the year. Certain asset classes are seeing tremendous value increases, including the hospitality sector.

The market for available and favorable financing, paired with great operating performance, has led to an up-cycle within this property sector. It has also created a more compelling reason for Real Estate Investment Trusts (REITs), Private Investment Management Firms and Sovereign Wealth Funds to chase hospitality assets. As a result, there has been an uptick in hospitality transactions over the past 12 months, and experts are predicting further activity throughout 2013.

To read the full article from Paradigm Tax Group, click here.

Posted in Country Clubs, Economy, Golf Courses, Hospitality, Hotels, Paradigm Info, Real Property, Resorts | No Comments »

All You Wanted to Know About Hospitality Property Taxes

Tuesday, November 27th, 2012

Property tax is not a fixed expense. It is manageable but often requires hiring someone experienced with these ad valorem taxes to assist. Hotel assets are very sophisticated investments that are typically left to those savvy investors that have specific knowledge of the operations. So the process of choosing a property tax consultant to represent you should entail as much sophistication and savvy as the buying process. The article discusses who the consultants are and the Pro’s and Con’s of each type; why hotel assets deserve more than just a local consultant; how to compensate the consultants; and how to evaluate their performance. Armed with all of this information, one should be ready to truly manage below the line.

To read the full article from Paradigm Tax Group, click here.

Posted in Country Clubs, Economy, Golf Courses, Hospitality, Hotels, Paradigm Info, Personal Property, Real Property, Resorts | No Comments »

How to Find the Best Hospitality Property Tax Consultant

Tuesday, August 28th, 2012

A recent article in HotelNewsNow.com discusses the considerations for choosing, compensating and evaluating third-party consultants hired to manage hospitality property tax expenses.

Highlights of the article include: final results that are at or below 100% of target value are home runs; typical contingency fees are 25% of tax savings for lower level cases; and, in the case of hotels, locality experience might not be as valuable as asset experience.

To read the full article, including in-depth detail on evaluating, choosing and compensating a property tax consultant, and how in general, the choice is not as simple as how much money you save, click here.

Posted in Country Clubs, Economy, Golf Courses, Hospitality, Hotels, Real Property, Resorts | No Comments »

Rebound Helps Nation’s Golf Economy Reverse Recent Declines

Monday, April 16th, 2012

For the first time in half a decade, golf in the United States is growing as the economic recovery strengthens. According to the Cape Cod Times, the number of rounds played on American courses has climbed for four straight months through February, and 2012 is expected to be the strongest since the recession. The $20 billion a year green fee business is beginning to get back to its peak and consumer confidence in general is growing.

Course operators are once again willing to spend on improvements and equipment, ridding themselves of older, obsolete machinery. Most importantly though is the fact that courses and country clubs are beginning to get back to old levels of business. The rough past couple of years have been a real strain on all golf-centered businesses causing foreclosures and loss in property value.

To read the full article from the Cape Cod Times, click here.

Posted in Country Clubs, Economy, Golf Courses, Hospitality, Real Property | No Comments »

Key Indicators of Hospitality Health Registering Solid Gains

Thursday, November 17th, 2011

Paradigm Tax Group recently sponsored and presented at the iGlobal Hospitality & Lodging Investment Summit 2011 in New York City. The one-day event provided a snapshot of the current health and future outlook for the global hospitality industry. Through a series of focused panel discussions, the event examined emerging trends and opportunities, along with the costs, benefits, risks and rewards of hospitality investments now and into the foreseeable future.

The general outlook from the Summit regarding the hospitality industry was optimistic. However, that optimism was met with a few concerns regarding both the US and European economies. Overall, the feeling was that there are good opportunities in the market if some level of economic growth can be established. Hotel deals appear to be back in the spotlight as several key indicators of hospitality health are registering solid gains.

To read the full summary on the iGlobal Hospitality & Lodging Investment Summit 2011 from Paradigm Tax Group, click here.

Posted in Country Clubs, Eastern, Golf Courses, Hospitality, Hotels, Paradigm Info, Real Property, Resorts | No Comments »

95% Tax Savings on ‘Improvements of Possessory Rights’ Properties

Tuesday, January 18th, 2011

In Arizona, there are several classes of property (1 -9). Each class of property has its own ratio (the percentage applied to the Full Cash Value to arrive at the Assessed Value). For example: Class 1 (commercial property), 20%; Class 2 (vacant land), 16%; Class 4 (rental residential property), 10%; Class 9, 1%.

A recent hospitality client of Paradigm Tax Group presented itself as a very unique property. It is a large convention hotel built on State Land. This type of property is called an IPR (Improvements on (of) Possessory Rights). Since the improvements are not secured to the land (land not owned by the same entity as the owner of improvements), IPR’s are considered Personal Property.

In reviewing the statutes, Paradigm Tax Group successfully determined that this property should qualify as Class 9 (1%), thereby lowering the ratio from Class 1 (20%) and effectively saving our client 95% on its property taxes. To become Class 9, the following criteria had to be met:

The improvements had to be owned by our client.
The land must be owned by a government entity.
The improvements must be used primarily for Convention or recreational use.
At the end of the lease, the improvements must be turned over to the government entity who owns the land.

(more…)

Posted in Country Clubs, Golf Courses, Hospitality, Hotels, Personal Property, Real Property, Resorts, Western | No Comments »

Meadowbrook Golf & Country Club Sells to Caymus Real Estate

Friday, September 24th, 2010

Kansas City, Missouri-area Meadowbrook Golf & Country Club Inc. has been sold to Caymus Real Estate LLC which will keep it open as a full-service private club. The deal was closed rapidly, about five to six weeks, and no sales price has been disclosed. Initial plans are to stabilize the club and take a look at further development as the opportunity presents itself.

A rezoning was approved back in 2006 to add 96 condos to the middle of the course along with a senior housing component but plans fell through. With the current economy, plans will most likely change with Caymus leaving plenty of green space. No immediate plans have been announced.

To read the full article from the Kansas City Business Journal, click here.

Posted in Country Clubs, Golf Courses, Hospitality, Mid America, Real Property | No Comments »

Golf Course Tax Relief

Wednesday, March 24th, 2010

Many states have tax relief programs that golf courses can usually qualify for that allows the land to be taxed based on value in use (as a golf course) versus the legal mandate of fair market value (value in exchange). These programs essentially create a win-win situation by lowering the real estate tax burden on golf courses, allowing them to continue in use as a golf course. For the jurisdiction the benefit is keeping a large area of well-maintained open, green space.

The programs are labeled differently in the states. For example, Pennsylvania has a “Clean and Green” program. Maryland has a state mandated “preferred land” status upon approval of the application. All but two jurisdictions in Virginia allow use value under an “open space” designation.

These benefits can be significant and can be in perpetuity. Recently one course in Virginia applied for and was granted use value and the assessed value of the land went from $1,486,200 to $417,246. Golf course owners should consider taking advantage of these tax relief programs.

Posted in Golf Courses, Hospitality, Real Property | No Comments »