Hunting Lodge/Club?

[BigBlueGA]

Got a request for a hunting club, several hundred acres with a ritzy lodge on it. How do these properties work? How are they valued? Is this a straightforward assignment or something I'm going to need to send to somebody with special expertise?

 

[Mark K]

"Got a request for a hunting club, several hundred acres with a ritzy lodge on it. How do these properties work?"


The one I belong to (not ritzy) is set up as a non-profit corp. with a set number of shares and each member owning one share, annual dues to cover expenses, and a first right to repurchase any shares offered for sale.

It may also be set up like many of the golf course country clubs with equity memberships or equity ownerships.


"How are they valued?"


I suspect a land valuation with depreciated cost approach to the improvements is the best route if no comps are available; and I doubt there are any. Our club has about 1,000 acres worth about $2K/acre and a clubhouse worth about $50K. Basically a land appraisal would work for ours.

There may be one entity that owns the real estate and leases to another that contains the membership. Seperate liability for insurance purposes, etc. Guns and tree/hunting stands make insurance companies nervous. We have NRA for liability insurance and a local agent for the improvements.


"Is this a straightforward assignment or something I'm going to need to send to somebody with special expertise?"

Can't answer this one.

Use what you can from the above.

 

[Burney Lightle]

We appraise a fair number of recreational properties in the four states we work (AR, MS, LA and TN)...there is a good number of large recreational tracts, improved with hunting lodges, that have sold...The lodge improvements range from low-grade to very highend and most are associated with waterfowl hunting (Mississippi Flyway in the Delta). Buyers are from a 500 to 800 mile radius...two (2010) recent sales with real nice lodges exceeded $7,000 per acre...most are significantly less; these were well know and high profile properties...

Given that, it is pretty much a straight forward appraisal...you have to determining the contributory value of the improvements and adjusting accordingly...we have found that there is a reasonable consistency within the region, so the only problem is to expand your geographic area some...similar to ag appraising...as always, the key is similar HBU and in this case that is driven by the wildlife (deer vs waterfowl)...

Give me a call if I can help you (501-279-7502)

 

[H.B. Userman]

In Wisconsin, they are fairly popular. I recently appraised one and had 3 comps to use. Email me if you'd like the info on the recent sale of the one I appraised. It was 220 acres with a fancy log lodge, sold for $5,000+/acre. Sold last month.

 

[Ray Miller]

There are a large number of these for sale and that have sold in the last 24 months around the country.

HUB come into consideration for a lot of these properties.

Are you appraising just the real estate or both the real estate and business. Some are game farms that offer only hunting and some also sell game to other game farms which can be very profitable. Not just a hunting club selling birds and big game to members.. Some offer big game hunting, upland birds and may add fishing to the mix depending on location. In addition they may also have a federal firearms license and sell high end rifles, shotguns and pistols to members and retail to the general public. A hunting/fishing proshop if you will.

I know of one in our area, that also offers retail horse back riding, schooling of hunters to get ready to go west for horse back big game hunting trips as well. They also offer several different types of equine clinics through out the year. Adds to the bottom line for profit.

I have a friend who raises elk and sells them to some hunting clubs for those hunters who are only after a rack. Makes better money on the elk then the beef cattle. In addition he has a good horn business as well.

 

[A. P. Grice]

Many, *many* moons ago, I had to appraise the Currituck Gun Club in Corolla, NC. Beautiful, turn-of-the-century place complete with a copper tile roof and mahogany paneling throughout. Superb joinery and casework.... Along comes WW2, and the Navy needs a billet for coast-watchers and whatnot, so they lease the place for the duration.

Everything - and I do mean *everything* - got painted battleship gray....

 

[GregoryK]

Hunting Club Appraisal

Having appraised several and operated a waterfowl hunt club, several questions come to mind.

What types of game are to be hunted? Deer and Turkey outfitters can operate from September to Spring Turkey Season. More days open creates more revenue.

How much land is owned by the club? How much is leased? Is the leased land rented at market rates? And How much of that land is exclusively leased (i.e. can the club operator farm the land, or is the hunting lease subservient to an agricultural lease?

Is the property operated by an outfitter, or is it simply leased by several members?

Just some things I would consider before entering into an agreement, and definitely before quoting a fee. Good luck, and if you have any questions, feel free to contact me.

 

[Frederick]

20 or so years ago I did one built by a Fortune 100 corporation and sold to a private party after many years of use. It was one of the most interesting structures I ever did. It must have been pretty cool back in the day to retire with the captains of industry to a place like that for a weekend retreat with rare Scotches and Cuban cigars and no broads pestering them. It reminded me of structures I had seen in Europe. It was plush and had extraordinary features and craftsmanship. It had a massive ornate bar, leaded stain glass windows and a very cool club room. It was located outside Princeton, NJ in a beautiful setting. It was so long ago I don't even remember how I constructed the appraisal.

 

[BigBlueGA]

This has gone from "unusual but still do-able" to "what the #&$^ do I do?". The lodge is very similar to a lot of what you have all mentioned, very high end, pro shop included, nice commercial kitchen, they do room rentals for events and there's even a high end residential apartment on the site that was built for the intention of leasing. The problem however is this....

The lodge sits on a 5 acre parcel owned by the controlling LLC. The land that they use to hunt surrounds it and is owned separately by the owner/operator. No lease on the surrounding property.

Since this is for a bank, value-in-use is not an option (must have a market value).

The facility is highly profitable, but without the legal use of the lands around it, how desirable would it be? Not very... the design is too specialized to realistically be used for anything else but meeting space and the income from just that portion of its use wouldn't support a realistic market value, I think it would highly undervalue the property. It's out in the boonies and vacant land is abundant, theoretically a purchaser could lease an adjoining tract and continue use I guess, but that seems like an awfully big assumption to make. Cost approach with sufficient functional obsolescence would seem to be the way to go, not sure where I would calculate that from though being that most of these facilities have unity of ownership or a contiguous title with the surrounding lands.

GAH.... my head hurts.