The Cliffs at High Carolina and Tiger Woods

Wall Street Journal/Real Estate
By Dawn Wotapka

ASHEVILLE, N.C.—Golf-resort developer Jim Anthony seemed to have pulled off a major coup by signing Tiger Woods to design the superstar's first U.S. course at a 3,200-acre community in the high meadows of the Blue Ridge Mountains.

Since that deal in 2007, the value of the Tiger Woods name looks a bit more questionable in the wake of claims about his alleged infidelities that have destroyed his wholesome image. The development near Asheville, named the Cliffs at High Carolina, has been confronted by the same dilemma faced by dozens of companies that paid Mr. Woods enormous amounts to endorse their products: maintain the ties with the Tiger brand or cut him loose.

"I'm sure the Cliffs will probably change their marketing focus now," said Nancy Thompson, a real-estate broker who has lived in Asheville for 15 years.

So far, the Cliffs is standing by Mr. Woods even as sponsors including Accenture Ltd. and AT&T Inc. have distanced themselves from the golfer.

"We're as committed as ever to High Carolina and the Tiger Woods golf course," Mr. Anthony said in a recent interview. "The reasons we chose Tiger are still true: his dedication to golf and he is the greatest golfer in the world."

The Cliffs is one of many golf resorts struggling with the economic downturn that has eroded demand for luxury homes adjoining golf courses. Sales of lots priced from the high-$400,000 range to $3 million have been slow since the development's introduction in August 2007. County records show 39 property transfers as of Jan. 26. Five more are under contract. The Cliffs plan envisions 1,200 homes by the end of the decade.

A video of Mr. Woods touting his course that could debut next year remains on the development's Web site despite certain parts that are rich with irony. "With a wife and two kids, your perspective in life changes…. I want to come up here as often as I possibly can," says the father of two young children. Mr. Woods also remains on advertising billboards for the development. Mr. Woods's design company couldn't be reached to comment. Its Web site touts courses planned for Dubai and Mexico.

But dealing with the economy might be trickier. Luxury housing developments mixed with golf courses enjoyed a boom before the recession, as developers poured millions into new courses linked with big-name golfers. Typically, developers built the courses, infrastructure and core amenities like clubhouses and made their money by selling high-priced lots.

But some North Carolina projects have failed as sales have cratered, while others are struggling. The Balsam Mountain Preserve, a high-end development in the western North Carolina mountains faced a notice of foreclosure in October. In Hendersonville, N.C., the Seven Falls Golf and River Club, site of the world's first Arnold Palmer Premier Club, filed for Chapter 11 bankruptcy protection last year.

"Like with most properties of our type, business got slow. The buyers dried up due to lack of liquidity in the lot-finance market," said Keith Vinson, a principal with the Seven Falls project. "This industry got really, really hammered by the economic crisis, from East to West Coast." The development has secured postpetition financing and will emerge from bankruptcy protection in April, Mr. Vinson predicts.

The Cliffs at High Carolina has the advantage of being linked with Mr. Anthony's seven other upscale Cliffs developments spanning 20,000 acres across North and South Carolina. The parent company, Cliffs Communities Inc., which was founded by Mr. Anthony, boasts the only club in America with two Jack Nicklaus Signature golf courses, as well as two courses by noted designer Tom Fazio.

The brand names add prestige and marketability to the developments. Membership in one Cliffs community provides access to all eight. Adding the Tiger name "allows us to lay claim to the best golf experience in the world," Mr. Anthony said.

While buyers of lots in the Cliffs cite the game as a selling point, others said the bucolic location was more than enough. "The property is beautiful, with or without Tiger Woods's name on it," said Francie Black, who said she purchased a lot more than a year ago.

The site on a mountain near Asheville, N.C., may not be an obvious choice as a golfing mecca. The city is an hour-and-a-half drive from Charlotte, the closest international airport. And unlike Florida or Phoenix, it has its fair share of snow, sleet and freezing temperatures in winter, meaning that four-seasons golfing is possible but not always optimal. Yet, the Cliffs was able to pull together a rare assemblage of land, an entire mountain at an elevation of nearly 4,000 feet, giving potential golfers and homeowners views stretching more than 50 miles on a clear day. The elevation, Mr. Anthony said, makes for mild temperatures for the rest of the year.

Mr. Anthony acknowledged the weak economy has posed a big hurdle. "Our timing could not have been worse," he said. "It's been a tough year and a half, but we can see the marketplace beginning to turn."

And when the high-end market returns, Mr. Anthony hopes its location will help set this development apart from other golf-course projects.

And as Ms. Black points out, Mr. Woods's problems even might be a blessing.

"The good twist on it would be it's not likely he's going to be doing another course anywhere" in the U.S., she said. "It will probably make it a more scarce product, which, in turn, increases its value"

To learn more about The Cliffs at High Carolina and other communities in Western North Carolina call the experts at Private Mountain Communities at 888-517-3322.

Private Mountain Communities offers a real estate advisory service and cost free buyers resource center that showcases Western North Carolina communities and real estate offerings. You can visit us at our Discovery Showroom, the regions most comprehensive preview center located in the Grove Arcade in downtown Asheville or find us online at http://www.pmclifestyle.com/

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