Southridge Club Properties Remain Unsold After 100 Days

By: Destination Club News
Date: March 1, 2010

Properties of The Southridge Club, an ultra-luxury destination club that launched last year that has since ceased operations, remain for sale after more than 100 days on the market. Introduced in July of 2009, The Southridge Club would announce their closure in November when the owner elected instead to sell the properties that would have been available to members.

The Palm Springs based destination club would utilize a very unique structure where all of the club's properties would be located in the same community. Members would have simultaneous access to all of the club's residences while they traveled, providing ample space for family reunions, corporate retreats, or the entourages of celebrities such as Brad Pitt and Angelina Jolie who have stayed at the club's properties in the past.

These properties would be some of the most iconic residences in the region, including the near 9,000 square foot, five bedroom Elrod House that was featured in the James Bond film Diamonds are Forever. The property portfolio would be rounded out by the former residence of Steve McQueen next door to The Elrod House and across the street rests The Boat House, an architectural marvel created for racecar driver James Jeffords.

According to various websites, the asking price for all three of the club's former residences has not changed since their original listing, totaling roughly $20 million.

Many destination clubs new and old have projected a slow sales year for 2010 as a result of the economy. To better weather the storm, the selective liquidation of underutilized properties has been considered and planned by multiple clubs. As evidenced by The Southridge Club, selling these properties in the current real estate climate may prove difficult and even impossible for the prices that clubs are seeking.

While these conditions may not be favorable for sellers, they are ideal for buyers. Equity Estates has repeatedly discussed the savings they have enjoyed over the past year and other new start-up clubs have candidly told us that acquiring club residences isn't their chief concern as the market is ripe with fabulous vacation properties in popular destination club locales.

If you are considering destination club membership, you should ask the clubs you are evaluating not only about the current property portfolio, but about the future of their residences. What properties are planned to be added in the next year? Are any properties going to be sold in the coming years? If so, is the club planning on replacing these residences?

If you would like to receive a list of other suggested due diligence questions pertaining to destination club membership, request a free copy of our Destination Club Guide.