Sale of Alvamar golf course falls through; owners asking $6.5 million

Golfers take to Alvamar Golf Course Tuesday, March 1, 2011. A deal to sell Alvamar’s golf and recreational assets fell through, forcing the company back into the market for a buyer.

A deal to sell Alvamar Inc.’s golf and recreational assets has fallen through, sending the company back into the market for a buyer.

A contract extension expired earlier this week, severing ties between Alvamar and Iowa-based Legends Golf LLC, which had agreed in October to buy Alvamar’s two golf courses, clubhouse, dining room and related offerings.

Bob Johnson, chairman of Alvamar’s board of directors, described the expired contract as “very near” the asking price of $6.5 million.

“We think it is much less than likely that any sale will be consummated with this buyer, but if he can do it and wants to come back to the table, we’ll be there,” Johnson said.

Alvamar now is “in discussions” with three prospective buyers, Johnson said, but “it is my assessment that that it is not real likely that any of them would lead to a contract.”

Alvamar leaders have been searching for a buyer since mid-October, seeking to give its 120 shareholders a chance to liquidate their investments. Many owners have held shares for 30 or 40 years, and are ready to move on now that they’ve reached retirement age.

“It’s disappointing, but the good news is we are not in a position where we needed to sell,” Johnson said. “It’s not a situation where we have to change our strategy.”

Alvamar has about 70 full-time, permanent employees and more than 1,000 golf and social memberships.