There may soon be new life for the Mahogany Run Golf Course, which has sat idle and deteriorating for the last four years, while it was listed for sale as part of a package deal for $40 million.
A partial breakout of the package and a drastic drop in the asking price to $22 million seem to have made the property a lot more attractive.
Wednesday, April Newland, the V.I. real estate agent who has the listing, denied a rumor that a sale has been made, saying, “I think we’re getting closer to something, but it’s not set in stone.”
Newland said she has had several offers that were rejected. “There’s a lot of interest in that property” from potential buyers. “As a matter of fact, we showed it yesterday to a group.”
There has also been considerable public interest in the fate of the golf course, which for decades was both a major tourist attraction and a recreation hub for locals.
The original listing comprised the 130-acre golf course, some 87 contiguous acres of land, and a separate 20-acre development site in Tutu Bay. Included with the property were improvements at the golf course, notably a restaurant and club house and a reverse osmosis plant.
Newland said the Tutu Bay property is not part of the deal now, and the amount of land in addition to the 130-acre golf course is 60 acres, rather than 87.
She said she could not discuss the status of the Tutu Bay property.
When an entity called Dun-Run Golf LLC was the owner of record several years ago, there was a proposal to build a large hotel on the Tutu Bay site by Estate Mandahl. The move engendered considerable opposition and faced various delays as it wound its way through permitting requirements, and eventually was abandoned.
Not long afterward, in September 2017, Hurricane Irma struck St. Thomas and badly damaged the golf course, the restaurant and other buildings. The course closed, as did the restaurant and gift shop. Substantial repairs have yet to be made.
Although the course has not been maintained in recent years, Newland said it still holds a lot of value.
Well-known course architects George and Tom Fazio designed the 18-hole par 70 course which opened in 1980. It featured the “Devil’s Triangle,” a three-pronged challenge, and over the years it drew countless celebrities from the mainland as well as attracting local golf enthusiasts and hosting numerous tournaments. It was home to local leagues. Its Grille Room was a popular restaurant with locals and visitors.
The property boasted a 300,000-gallon reverse osmosis plant and irrigation system. The plant supplied water not only for the property but for the nearby sprawling condominium complex, which shares the Mahogany Run name but is not directly affiliated with the golf course.
“It was definitely a source of income that was very positive,” Newland said of the reverse osmosis plant. “I believe it could be repaired pretty quickly and put into operation.”
New owners might get a favorable response if they apply for tax subsidies.
“The governor is very anxious for it to be opened again,” Newland said. “The governor and the EDA (Economic Development Authority) have really been cooperative.” The V.I. Economic Development Authority is a semi-autonomous government entity that gives tax breaks for the purpose of promoting V.I. economic development.
Newland declined to say who the seller is now.
Dun-Run was a subsidiary of a publicly traded entity called Transcontinental Realty Investors, Inc. According to the former attorney for Dun-Run, George Dudley, Transcontinental sold it to another entity called ABC Land Company after the hurricane, in March 2018. As late as November 2020, when the Source reported on the status of the golf course, Newland confirmed the owner was still ABC Land Company.