Country Club of the South, two other clubs in north Fulton sold to golf giant

The deal, which closed Tuesday, represents Arcis’ largest investment in Georgia to date, a market the company entered in late 2023 with its acquisition of the Champions Retreat Golf Club near Augusta.

Atlanta has always been a key strategic market for the company, said Blake Walker, the founder and CEO of the company, in an interview with The Atlanta Journal-Constitution. With the acquisitions, Arcis now owns 54 holes across the metro region.

“When we look at expansion markets, Atlanta was the No. 1 market in the United States that we wanted to be in,” Walker said.

Golf has seen a post-pandemic surge after years of waning interest. Golf course participation has grown for seven years in a row, according to data from the National Golf Foundation, and is up by 38% from the pandemic.

Arcis’ acquisition of three properties came about through an unsolicited offer. The seller of all three clubs was Invited Clubs, formerly known as ClubCorp. Invited had no intention of selling them, Walker said. But Arcis approached Invited about the importance of entering the Atlanta market and the company’s interest in these properties, all of which were designed by renowned golfers and architects, have a family-oriented membership and are surrounded by “incredible communities,” Walker said. The deal unfolded from there.

Country Club of the South, designed by golfing legend Jack Nicklaus, was established in 1987 and is known for its challenging layout. It’s also home to one of metro Atlanta’s most elite and best-known residential communities, having once counted Whitney Houston and Bobby Brown as residents. The club has undergone multiple changes in ownership over the years, including going before a foreclosure auction in 2010. It was acquired by Invited in June of that year.

Alpharetta’s Manor Golf & Country Club is among 16 clubs designed by another golf legend, Tom Watson. The club, which was established in 2006, also has a 16-court tennis center, two restaurants and junior programming. White Columns Country Club in Milton was designed by famed architect Tom Fazio and also offers swimming, tennis, pickleball and fitness facilities.

Backed by private equity firms Fortress Investment Group and Atairos, Arcis has made 18 transactions across the U.S. in three years. This is a substantial, if not aggressive, pace for a company investing in one sector of real estate. Arcis has invested more than $150 million on property upgrades, new amenities and personnel, among other line items. And Arcis said it doesn’t just reposition the properties — they operate them, too.

The sport is also becoming more diverse — since the start of the pandemic, there has been a net increase of 2.3 million females and 2.1 million golfers of color playing on course, according to the NGF. Women and girls account for approximately 60% of the net gain in golfers on traditional grass courses since 2019.

Increased participation means higher revenues and stronger investor interest. Demand is high and supply is low. Before the pandemic surge in play, some golf course owners were selling out or returning their courses to nature in some places.

Golf course development is extremely expensive, time-consuming and subject to stringent environmental regulations, which makes existing courses that much more of a value proposition. The average sale price of a golf course increased 38% between 2023 and 2024, reaching $6.8 million, according to a research report from real estate advisory services firm Leisure Investment Properties Group. The last time average prices were at that level was 2007.

Arcis is assembling a portfolio of all types of golf real estate, from $30 entry-level daily fee courses to high-end private clubs in major metropolitan areas in the U.S. In doing so, it wants to add lifestyle-focused amenities, such as entertainment, health and wellness programming and culinary experiences.

“It’s not just about the golf,” Walker said. “It’s about the overall experience for the entire family.”