Ironhorse Country Club saved by private buyer for $2.4M
Posted on 08. Jan, 2010 by Dana Nichols in Courses, Financial
The Ironhorse Country Club in West Palm Beach has been feeling the economic slice and has filed for Chapter 11 bankruptcy protection after losing a court battle to charge mandatory fees to residents. The club will operate business as normal through the reorganization.
A private buyer has made an offer for $2.4 million but owed creditors, including Wachovia Bank are still awaiting $3.6 Million.
The offer was official Tuesday when Bob Naples, president of the member-owned club announced that Thomas O’Malley, chairman of Switzerland-based refinery Petroplus would make the purchase.
O’Malley is currently the owner of a Worth Avenue condo in Palm Beach and recently bought two Palm City golf courses. The Chapter 11 reorganization could allow O’Malley to make the purchase without being responsible for the debt.
According to court records the of the club in 2006 was $9 million and the Palm Beach County Property Appraiser’s Office lists the value at $5.8 million.
In 2006 before any sign of the recession the country club spent about $3.5 million renovating its Arthur Hills-designed golf course but when the recession hit memberships began to slip and events were canceled.
The Ironhorse housing community has approximately 320 homes valued between $300,000 to $1 million. The club has 200 golf memberships, but needs at least 20 more golf members and 50 “social memberships” to make the club viable said, Naples.
Social memberships were required until a Fourth District Court of Appeal judge backed a 2008 circuit court ruling that said that Ironhorse’s developer couldn’t unilaterally change homeowner documents forcing residents to pay the $2,900 fee in 2009.
A new voluntary social membership fee will go into affect that will cost members $2,200 annually.
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