Heavily Discounted, Woodlake Secures New Buyer
- Tom Embrey, staff writer
- Apr 3, 2015
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Woodlake Country Club has been purchased on the auction block at a heavy discount, but the new owner will face substantial costs to bring the development back up to standards.
Germany-based Steiner + Company purchased the financially troubled property for $500,000. That purchase includes a 1,200 acre lake, two world-class golf courses, a gated residential community and property suitable for commercial development. The company also purchased four of five other available lots for an additional $205,000 during the auction, held on March 26.
The sales were approved by the U.S. Bankruptcy Court for the Middle District of North Carolina Durham Division Tuesday and are expected to close in approximately 45 days.
While it would seem like a steal, the purchase comes with a huge cost for the new owner. Woodlake’s dam is seriously flawed and in need of repairs expected to cost in the millions.
Woodlake is located off N.C. 690 in Vass, north of Southern Pines. Resident Charlie Jones said he is taking a wait-and-see approach with the new ownership, and hoping that the company will work with residents to make changes that will improve the community.
"I'm hopeful," Jones said. "This place has tremendous potential."
He said repairing the dam is key to reviving the property.
"The linchpin to the whole thing is doing something with the dam," Jones said.
In addition to the two golf courses — one designed by Ellis Maples and the other by Arnold Palmer — the main feature of the Woodlake property is a 1,200-acre, man-made lake. In recent months the condition of the Woodlake Dam has become compromised and state regulators are requiring significant repairs. The nature of the dam’s problems were disclosed to all bidders at auction.
The original submitted repair plan included two phases and an estimated repair costs of $2.5 million. That cost could fluctuate depending on a variety of factors, including if the repair plan is changed or if the new owners decide to start over with a new engineer and a new plan.
If the owners decline to repair the dam, it can be breached.
Currently the dam is classified as a “high hazard” because its failure could result in the loss of life, damage to roads, or more than $200,000 in property damage.
The current plan remains on file with the state dam officials.
A. B. Hardee, a local developer, originally developed the property in 1968. Hardee commissioned the construction of the 1,200-acre lake, originally named Lake Surf. Shortly thereafter, Hardee hired the late Ellis Maples to design what is now The Maples course. Woodlake was then purchased in 1980 by the family of German developer Dr. Ingolf Boex. With grand visions for what Woodlake could become, Boex decided to build a second course, The Palmer course, which opened in 1996.
The property also features the historic Oates House, which serves as Woodlake’s clubhouse, and is home to a full-service restaurant with commercial kitchen, pro shop, banquet facilities and management offices. The landmark building was constructed prior to 1800 in Fayetteville, then relocated to Woodlake and restored.
Woodlake's prior owners, Woodlake Partners LLC, suffered from financial problems for several years, which caused both golf courses to suffer from deferred maintenance and declining revenues. Woodlake Partners filed for Chapter 11 bankruptcy last September.
As part of the bankruptcy proceedings, the court appointed attorney Richard Hutson II as chief restructuring officer to oversee the process. Hilco Real Estate Auctions, LLC, a unit of Hilco Real Estate, was hired to conduct the sale.
The lake’s dam has been a problem for decades. In the late 1980s, the lake needed to be drained because of large holes in the dam that needed to be fixed to prevent its collapse.
Some residents living in Woodlake have voiced concerns that breaching the dam could adversely impact property values.
Contact Tom Embrey at (910) 693-2484 or