Newport Beach Club acquired for $10.2 million
PORTSMOUTH, R.I. — Mark McClure, a managing partner of Miami-based GenX Capital Partners, confirmed Tuesday that his firm, along with Maine developer Patrick Tinsman, recently completed their acquisition of Newport Beach Club for $10.225 million.
Newport Beach Club, a residential community in Portsmouth, recently changed hands. Arsenal Real Estate Group, a private equity fund out of Morristown, New Jersey, and developer Brian O’Neill, halted all activity to the oceanfront development more than a year ago.
“Yes, there have been various issues over the past years with the Newport Beach Club from a legal standpoint which, quite frankly, I don’t know enough about nor want to get into,” wrote McClure in a prepared, published statement. “All I can tell you is that the developers, to date, have put together an amazing, breathtaking resort-style community that we intend to finish and turn it into what it was intended to be: the premiere, upscale oceanfront, residential community along the Eastern United States.
“We have ocean views from every angle, a completed resort-style clubhouse fully staffed with several pools along with a completed topnotch fitness facility, tennis courts, handball courts, a restaurant and a current community of existing members who love it here. This place has everything a resident could ask for and just as importantly, the Carnegie Abbey Golf Course less than a half mile away.”
When word began to spread several months ago that new ownership was in the works for the Newport Beach Club, investors and builders began to reach out, according to McClure.
“We have approximately $30 million in inventory to sell and before we even closed, we had deposits for $7 million of that inventory in advance,” he wrote. “With zero marketing, just the fact that they heard new owners were coming in with a vision and a plan, we have been able to close on more than $7 million in lots, with more closings planned for end of August and first of September.
“It’s crazy but exciting and, obviously, the prices we had set prior to closing are only going to escalate; that’s why savvy investors and builders are continuing to call and set up site visits. There really is no other luxury community like this on the eastern seaboard.”
The Newport Beach Club is a private, year-round operation employing more than 40 staff during the peak summer months and scaling back to about half that in the fall to the spring. New ownership has stated they have no immediate plans to change that, however, but indicated there are areas where they will look to eliminate waste and pour this savings back into the community.
“As with any acquisition, the fresh set of eyes coming in can be extremely valuable in uncovering wasteful spending and, in this case, it was no different. Prior to closing, we obviously completed a thorough due diligence process and that included forensic accounting, if you will, and found many areas where fat can be cut, and these funds diverted to other areas – areas that will enhance and experience of living in the Newport Beach Club,” wrote McClure.
“It is ownership’s absolute goal, plan, and vision to take this spectacular development to another level and give the residents a resort experience and feel on a year-round basis. And while the lots we still have available are not cheap by any means, however still below comp values, what you get in return from a quality of life standpoint dwarfs anything you would find anywhere else on the East Coast and certainly New England.
“We envision bringing a Four Seasons and Ritz Carlton lifestyle element to the Newport Beach Club, without the excessive price tag.”
Ownership has priced the remaining lots aggressively and below area comps but has stated as lots sell, prices will escalate as inventory dwindles. The 11 oceanfront lots have sold the quickest, starting at $500,000 with only three lots remaining, now priced at $695,000 each.
Hillside lots, with sweeping views of the property and ocean, are aggressively priced in the $350,000-$375,000 range with the Beach Village (100 yards from the beach and beach club) priced $225,000-$250,000 and Equestrian Village in the $225,000 range.
Based on the amenities, location, and current sales, the new owners expect to begin building in the coming weeks.