EPR Properties announced the acquisition and leaseback of a five-property portfolio of championship golf courses, along with the acquisition and leaseback of the Ocean Breeze Water Park located in Virginia Beach, VA. The blended cap rate for the combined $113 million in investments is 8.6%. Following these acquisitions and additional investments, the Company now anticipates that investment spending will be approximately $285 million versus its previously stated investment spending guidance of $225-$275 million.
The golf course portfolio includes five semi-private championship golf courses located in the Dallas, TX metropolitan area which include full-service food and beverage offerings along with comprehensive practice facilities. The properties will be leased and operated by Advance Golf Partners, a leading golf course operator who brings deep experience and proven strategy for successfully operating daily fee golf. The Company's investment is backed by extensive research in the on-course golf sector which is viewed to have an addressable market of over $2 billion.
Investment Highlights: Attractive Supply /Demand Characteristics - The golf industry has experienced a significant shift. While overall supply of golf courses has materially contracted, demand for high quality courses has regained strong and sustained momentum. High Quality Real Estate - The properties are located within dense high-growth submarkets in Dallas which index high in golf participation.
Enhanced Experiential Diversification - The transaction adds further diversification to the Company's portfolio of experiential properties. Ocean Breeze Water Park: Consisting of more than 30 rides and attractions on 20 acres of land, including a million-gallon wave pool, Ocean Breeze is a regional water park serving the Virginia Beach, Norfolk and Newport News metro areas. Ocean Breeze waterpark will be leased and operated by an affiliate of Premier Parks, a long-time strategic partner of the Company.
Investment Highlights: Regional Draw - The park is located near Virginia Beach, a vibrant coastal region which is a major tourist destination. Proven Attraction - The property has demonstrated sustainability and ability to adapt to market demands over time. Seasonal Revenue Resilience - Ocean Breeze benefits from a long operating season due to the mild climate of Virginia Beach.
