Future of Santa Luz – 92127?

[earlyretirement]

[quote=clearfund]Gentlemen – They DID lower the golf club membership fees by well OVER 50%. The golf club fee was apx $120k at one time…now it is $43k. And yes, it did bring a lot of fence sitters into the club….and tick off many golf members given that it is an 80% equity club. Not to mention that it is a 4 in, 1 out rule until they reach their cap around 425+/-.[/quote]

Clearfund,

Thanks for sharing. See, that is the kind of information that is really important and educational for buyers as those are things that no one is really saying anything about.

I guess golf members that already paid $120,000 would hate that as they not only paid too much but also it floods the course with even new members so they might have a harder time getting time on the golf course.

Also, someone I was curious about is I asked Kelly (the manager at the Club) if it was possible to get a Hacienda club membership if you lived in Verrazzano, Santa Monica or Marisol. She said it was not. She said only if you live within the gates of Santaluz. Is this correct? I heard from at least 2 people that they were selling memberships to outsiders but I didn’t know if this was true or it was only Golf memberships?

[clearfund]

Only golf/spa memberships are sold to non-property owners. Hacienda/sports memberships are only sold to property owners.

Also, I doubt the course would be “flooded” with new golfers at $43k in today’s market. They dropped the price to infuse new ‘blood’ into the club and allow people on the ‘get out’ list a chance to escape the $1,100/mo minimum fee. Remember, they are only around 275+/- golf members vs. a cap of 425+/-.

As a golf member, the facility is top shelf and compares well with the other top tier clubs in the region. Service is #1, hands down. Spa is world class in its service. And all that staff just waiting around makes your experience a great escape from daily life. Expensive, but worth it if it is in the budget.

[clearfund]

Only golf/spa memberships are sold to non-property owners. Hacienda/sports memberships are only sold to property owners.

Also, I doubt the course would be “flooded” with new golfers at $43k in today’s market. They dropped the price to infuse new ‘blood’ into the club and allow people on the ‘get out’ list a chance to escape the $1,100/mo minimum fee. Remember, they are only around 275+/- golf members vs. a cap of 425+/-.

As a golf member, the facility is top shelf and compares well with the other top tier clubs in the region. Service is #1, hands down. Spa is world class in its service. And all that staff just waiting around makes your experience a great escape from daily life. Expensive, but worth it if it is in the budget.

[clearfund]

Only golf/spa memberships are sold to non-property owners. Hacienda/sports memberships are only sold to property owners.

Also, I doubt the course would be “flooded” with new golfers at $43k in today’s market. They dropped the price to infuse new ‘blood’ into the club and allow people on the ‘get out’ list a chance to escape the $1,100/mo minimum fee. Remember, they are only around 275+/- golf members vs. a cap of 425+/-.

As a golf member, the facility is top shelf and compares well with the other top tier clubs in the region. Service is #1, hands down. Spa is world class in its service. And all that staff just waiting around makes your experience a great escape from daily life. Expensive, but worth it if it is in the budget.

[clearfund]

Only golf/spa memberships are sold to non-property owners. Hacienda/sports memberships are only sold to property owners.

Also, I doubt the course would be “flooded” with new golfers at $43k in today’s market. They dropped the price to infuse new ‘blood’ into the club and allow people on the ‘get out’ list a chance to escape the $1,100/mo minimum fee. Remember, they are only around 275+/- golf members vs. a cap of 425+/-.

As a golf member, the facility is top shelf and compares well with the other top tier clubs in the region. Service is #1, hands down. Spa is world class in its service. And all that staff just waiting around makes your experience a great escape from daily life. Expensive, but worth it if it is in the budget.

[clearfund]

Only golf/spa memberships are sold to non-property owners. Hacienda/sports memberships are only sold to property owners.

Also, I doubt the course would be “flooded” with new golfers at $43k in today’s market. They dropped the price to infuse new ‘blood’ into the club and allow people on the ‘get out’ list a chance to escape the $1,100/mo minimum fee. Remember, they are only around 275+/- golf members vs. a cap of 425+/-.

As a golf member, the facility is top shelf and compares well with the other top tier clubs in the region. Service is #1, hands down. Spa is world class in its service. And all that staff just waiting around makes your experience a great escape from daily life. Expensive, but worth it if it is in the budget.

[ocrenter]

Mello-Roos to Increase?

JtR had a post in regard to Encinitas Ranch’s increasing MR. Apparently due to financial issues in regard to “Encinitas Ranch Golf Authority.”

what is the exact financial structure and soundness of the Santaluz golf club/gym/spa? what is the larger Santaluz community’s financial obligation to the club/gym/spa? Are the homeowners on the hook just like the Encinitas Ranch owners? This is something to look into especially if no one’s at the restaurant or gym and employees are just standing around smiling.

[ocrenter]

Mello-Roos to Increase?

JtR had a post in regard to Encinitas Ranch’s increasing MR. Apparently due to financial issues in regard to “Encinitas Ranch Golf Authority.”

what is the exact financial structure and soundness of the Santaluz golf club/gym/spa? what is the larger Santaluz community’s financial obligation to the club/gym/spa? Are the homeowners on the hook just like the Encinitas Ranch owners? This is something to look into especially if no one’s at the restaurant or gym and employees are just standing around smiling.

[ocrenter]

Mello-Roos to Increase?

JtR had a post in regard to Encinitas Ranch’s increasing MR. Apparently due to financial issues in regard to “Encinitas Ranch Golf Authority.”

what is the exact financial structure and soundness of the Santaluz golf club/gym/spa? what is the larger Santaluz community’s financial obligation to the club/gym/spa? Are the homeowners on the hook just like the Encinitas Ranch owners? This is something to look into especially if no one’s at the restaurant or gym and employees are just standing around smiling.

[ocrenter]

Mello-Roos to Increase?

JtR had a post in regard to Encinitas Ranch’s increasing MR. Apparently due to financial issues in regard to “Encinitas Ranch Golf Authority.”

what is the exact financial structure and soundness of the Santaluz golf club/gym/spa? what is the larger Santaluz community’s financial obligation to the club/gym/spa? Are the homeowners on the hook just like the Encinitas Ranch owners? This is something to look into especially if no one’s at the restaurant or gym and employees are just standing around smiling.

[ocrenter]

Mello-Roos to Increase?

JtR had a post in regard to Encinitas Ranch’s increasing MR. Apparently due to financial issues in regard to “Encinitas Ranch Golf Authority.”

what is the exact financial structure and soundness of the Santaluz golf club/gym/spa? what is the larger Santaluz community’s financial obligation to the club/gym/spa? Are the homeowners on the hook just like the Encinitas Ranch owners? This is something to look into especially if no one’s at the restaurant or gym and employees are just standing around smiling.

[EconProf]

ocrenter and clearfund raise some interesting points about the Santaluz golf club membership that prompt ruminations about how things have changed so radically in the past decade. Golf/membership clubs are reportedly in trouble nationwide, as baby-boomers age and golf less, expensive sports are shunned with our nation’s newfound austerity, and land and water rates rise.
Consider also the particular economics of a golf course: heavy up-front fixed costs, low marginal or variable costs (the cost of each additional user). This means the enterprise cannot thrive without volume, and in fact may have a breakeven point of perhaps 70% or 80% of capacity. Usage of both clubs is way below their potential, as we have observed.
Since Santaluz was conceived and planned in the heady post-stock market peak of 1999, and executed in the real estate bubble of 2000-2005, they assumed their expensive memberships would always have high and increasing demand, thus their lofty initial asking price. Now the gloom of our post-bubble economy is becoming permanent, some 10% + building pads of Santaluz sit vacant (and are selling for less than their initial 2003 or so price), and the membership prices have been cut, much to the chagrin, I suppose, of the original buyers. I imagine a lot of internal debate and gnashing of teeth preceeded this decision.
I suggest this is the new normal and a slew of other enterprises must rethink their business model in view of a permanent slow growth economy.

[EconProf]

ocrenter and clearfund raise some interesting points about the Santaluz golf club membership that prompt ruminations about how things have changed so radically in the past decade. Golf/membership clubs are reportedly in trouble nationwide, as baby-boomers age and golf less, expensive sports are shunned with our nation’s newfound austerity, and land and water rates rise.
Consider also the particular economics of a golf course: heavy up-front fixed costs, low marginal or variable costs (the cost of each additional user). This means the enterprise cannot thrive without volume, and in fact may have a breakeven point of perhaps 70% or 80% of capacity. Usage of both clubs is way below their potential, as we have observed.
Since Santaluz was conceived and planned in the heady post-stock market peak of 1999, and executed in the real estate bubble of 2000-2005, they assumed their expensive memberships would always have high and increasing demand, thus their lofty initial asking price. Now the gloom of our post-bubble economy is becoming permanent, some 10% + building pads of Santaluz sit vacant (and are selling for less than their initial 2003 or so price), and the membership prices have been cut, much to the chagrin, I suppose, of the original buyers. I imagine a lot of internal debate and gnashing of teeth preceeded this decision.
I suggest this is the new normal and a slew of other enterprises must rethink their business model in view of a permanent slow growth economy.

[EconProf]

ocrenter and clearfund raise some interesting points about the Santaluz golf club membership that prompt ruminations about how things have changed so radically in the past decade. Golf/membership clubs are reportedly in trouble nationwide, as baby-boomers age and golf less, expensive sports are shunned with our nation’s newfound austerity, and land and water rates rise.
Consider also the particular economics of a golf course: heavy up-front fixed costs, low marginal or variable costs (the cost of each additional user). This means the enterprise cannot thrive without volume, and in fact may have a breakeven point of perhaps 70% or 80% of capacity. Usage of both clubs is way below their potential, as we have observed.
Since Santaluz was conceived and planned in the heady post-stock market peak of 1999, and executed in the real estate bubble of 2000-2005, they assumed their expensive memberships would always have high and increasing demand, thus their lofty initial asking price. Now the gloom of our post-bubble economy is becoming permanent, some 10% + building pads of Santaluz sit vacant (and are selling for less than their initial 2003 or so price), and the membership prices have been cut, much to the chagrin, I suppose, of the original buyers. I imagine a lot of internal debate and gnashing of teeth preceeded this decision.
I suggest this is the new normal and a slew of other enterprises must rethink their business model in view of a permanent slow growth economy.

[EconProf]

ocrenter and clearfund raise some interesting points about the Santaluz golf club membership that prompt ruminations about how things have changed so radically in the past decade. Golf/membership clubs are reportedly in trouble nationwide, as baby-boomers age and golf less, expensive sports are shunned with our nation’s newfound austerity, and land and water rates rise.
Consider also the particular economics of a golf course: heavy up-front fixed costs, low marginal or variable costs (the cost of each additional user). This means the enterprise cannot thrive without volume, and in fact may have a breakeven point of perhaps 70% or 80% of capacity. Usage of both clubs is way below their potential, as we have observed.
Since Santaluz was conceived and planned in the heady post-stock market peak of 1999, and executed in the real estate bubble of 2000-2005, they assumed their expensive memberships would always have high and increasing demand, thus their lofty initial asking price. Now the gloom of our post-bubble economy is becoming permanent, some 10% + building pads of Santaluz sit vacant (and are selling for less than their initial 2003 or so price), and the membership prices have been cut, much to the chagrin, I suppose, of the original buyers. I imagine a lot of internal debate and gnashing of teeth preceeded this decision.
I suggest this is the new normal and a slew of other enterprises must rethink their business model in view of a permanent slow growth economy.

[Author]

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