A recorded cellphone message experiences that Topgolf’s Independence location, like the entire firm’s services throughout the U.S., is closed as a result of authorities mandates. The COVID- 19 shutdown wasn’t within the Dallas firm’s plans.
Nonetheless, the sale of the multilevel constructing with its 100 so-called hitting rooms for patrons to play golf, drink or dine — climate be damned — matches the clockwork operation of the fast-growing firm formally named Topgolf Leisure Community.
On Feb. 24, simply two months after it opened on Rockside Woods Boulevard, the bagger’s dream was offered to VEREIT, a Phoenix-based actual property funding belief, for nearly $37 million, based on Cuyahoga County land data.
In a putting instance of how property values are roughly the identical for large firms in several places, the Topgolf in Minneapolis offered for $38 million in 2018, whereas a Schaumberg, Ailing., location offered in March 2019, 4 months after opening, for $50 million, based on The Real Deal, an actual property commerce journal.
As a just-completed building undertaking, Cuyahoga County has not but assigned a market worth to the construction for tax functions, based on the county’s on-line property data.
Beneath a single-tenant, net-leased transaction, the property proprietor will get his or her money instantly and the tenant leases the property for as a lot as 20 or 25 years. For a quick-moving outfit like Topgolf, such offers unencumber capital for funding within the subsequent location by the corporate or a developer placing it up for them.
A purchaser akin to VEREIT additionally will get favorable tax therapy beneath federal regulation designed to supply business actual property possession to smaller traders.
VEREIT is an enormous property firm with a secure of three,858 buildings starting from company headquarters to Greenback Normal shops as of the top of 2019, based on the corporate’s most up-to-date monetary assertion launched Feb. 26.
Topgolf matches a part of the corporate’s drive to diversify its retail tenant base with further high-credit-rate, entertainment-oriented properties.
The Independence deal didn’t benefit a point out on the corporate’s most up-to-date convention name with traders.
Nonetheless, the undisclosed variety of Topgolf places it owned as of the final year-end was simply zero.7% of VEREIT’s holdings, based on its fourth-quarter 2019 investor review.
The Independence Topgolf, situated at 5820 Rockside Woods Blvd., is one in all 58 places across the globe, based on a March 2 information launch on the corporate’s web site.
Topgolf teed off in 1997 and was initially distinguished by a know-how that mechanically scored video games, which was embellished over time with a restaurant, bar, banquet rooms and different low-tech advertising mechanisms akin to golf lessons.
Plans for the undertaking in Independence first surfaced in early 2018 earlier than the suburb’s planning fee. Making the 15-acre website obtainable for improvement and public use meant the completion of the extension of Rockside Woods between Rockside Highway and Brecksville Highway, which had languished for greater than 20 years.
Topgolf didn’t reply by midday on Friday, March 27, to an e-mail asking in regards to the sale.