The post-pandemic landscape has redefined lifestyle preferences, fueling a significant resurgence in golf and reshaping residential choices. This confluence has sparked a boom in golf-centric real estate development, with South Street Partners emerging as a dominant force in this thriving sector.
South Street Partners, a distinguished private equity real estate firm and investment manager, strategically positioned between Charlotte, North Carolina, and Charleston, South Carolina, has demonstrated exceptional activity, particularly within South Carolina’s high-end residential golf property market.
Their portfolio boasts prestigious golf communities including the Kiawah Island Club, Palmetto Bluff, and The Cliffs. Furthermore, recent strategic acquisitions such as the King and Prince Beach & Golf Resort in St. Simons Island, Georgia, the Barnsley Resort in Adairsville, Georgia, featuring a Jim Fazio-designed course, and the Naples Grande Beach Resort in Naples, Florida, with its Rees Jones course, underscore their expanding influence in the golf and luxury real estate domain.
Palmetto Bluff, a prime example of South Street Partners‘ commitment to innovation, recently unveiled Crossroads, a unique 9-hole golf course designed by the acclaimed King-Collins team. This versatile and reversible course complements the upcoming 18-hole championship course at Palmetto Bluff, masterfully crafted by the renowned Coore and Crenshaw, adding to the existing May River Golf Course. Kiawah Island Club is also set to enhance its golfing amenities with a new course from Beau Welling, joining the esteemed Tom Fazio-designed River and Tom Watson-designed Cassique courses.
Erik MatuszewskiMORE FROM FORBES ADVISOR
Golf: A Lucrative Amenity for South Street Partners
For South Street Partners, golf transcends mere recreation; it’s a cornerstone of their business model and a significant revenue driver. Rob Duckett, President of Operations at South Street, overseeing flagship properties like Palmetto Bluff, Kiawah Island Club, The Cliffs, and Naples Grande, emphasizes the strategic importance of golf. “Golf is one of our major, major amenities,” Duckett stated. “One of our greatest assets is providing a quality golf experience because the people who play golf at this level fit our profile of real estate buyers and who want to live in communities like ours. So, that marriage between the golfer and the products that we sell outside of the club, i.e. real estate, are a great match.”
The National Golf Foundation corroborates this trend, reporting that 42% of current golf course projects in development incorporate a residential real estate component. This figure significantly surpasses the 23% of existing U.S. golf facilities integrated with residential communities or resort complexes.
Currently, approximately 3,200 golf facilities in the U.S. are affiliated with real estate ventures, with South Carolina being a leading state, boasting over 100 such developments.
“Obviously Florida is one state that a lot of the rest of the U.S. is gravitating towards, but right behind Florida is South Carolina,” Duckett noted. “South Carolina has always been a sleeper when it comes to the golf industry. This is a good time to be in the golf business in the state of South Carolina.”
South Street Partners
The Rise of Safe Haven Communities
Beyond the surging popularity of golf, South Street Partners has capitalized on the increasing demand for secure, amenity-rich communities like Kiawah Island and Palmetto Bluff.
Duckett highlighted a recent Palmetto Bluff survey indicating that full-time residents now constitute 51% of the community, a significant increase from 30% to 40% just five years prior. “That was unheard of at Palmetto Bluff. When it started, they were 20% full-time residents,” Duckett added. “There’s been this migration to these safe-haven communities, and Covid heightened the demand. Things have settled a little bit, and people are traveling more now. Many are back to doing the split time, but a lot of them have changed their life to make it more full time.”
This sustained demand, driven by both increased member engagement and growing interest in community residency, necessitates expanded golf and recreational offerings.
Beau Welling’s return to Kiawah Island to design a third 18-hole course for Kiawah Island Club members further demonstrates South Street Partners‘ commitment to meeting this demand. Kiawah Island also features five public courses, including the renowned Ocean Course, famed for hosting prestigious events like the Ryder Cup and PGA Championships. While these public courses are part of the Kiawah Island Golf Resort and not owned by South Street, the company offers exclusive homeownership opportunities adjacent to the Ocean Course at the environmentally conscious Front Nine Lane Parkside community.
Expanding Golf and Experiential Amenities
Palmetto Bluff’s recent addition of Crossroads, a reversible 9-hole course designed by King-Collins, exemplifies South Street Partners‘ innovative approach. This 54-acre course, located near Palmetto Bluff Builders’ The Grove community, adds a unique dimension to the golfing experience. The forthcoming Coore-Crenshaw course at Palmetto Bluff promises to be another significant draw, offering a championship-level experience with stunning views.
“When people think about a golf destination, they really weren’t thinking about Palmetto Bluff,” Duckett acknowledged, noting South Street Partners‘ acquisition of the property approximately three years ago. “But with the addition of the Coore-Crenshaw course and the King-Collins course, that’s going to transform Palmetto Bluff into a pretty significant golf destination for somebody who’s passionate about golf. Having a place that they could go and then have the variety that Palmetto Bluff offers would be tremendous — probably the leader in the marketplace that Hilton Head area.”
Beyond golf, South Street Partners strategically diversifies amenities within their communities, offering experiences ranging from shooting and equestrian activities to water and paddle sports. However, golf remains central to their experiential offerings.
“When folks spend time at their residence, (we want them) to have the opportunity to try new things that they never thought they would get a chance to try,” Duckett explained. “Our clubs are based on experiences, and the more experiences we can offer, the better off and the more attractive we are to our members and our future members.”
By continuously enhancing the quality and variety of golf experiences, alongside a diverse array of amenities, South Street Partners solidifies its position as a leader in the high-end residential golf real estate market, attracting discerning buyers and members seeking an unparalleled lifestyle.
