Topgolf Bubble? Baltimore And Philadelphia Locations For Sale After A Year Of Operation

Almost a year after its opening, a Topgolf location in downtown Baltimore City is on the market. Situated adjacent to the M&T Bank Stadium and in the heart of the crime-ridden metro area, the three-tiered sports entertainment complex has been listed for nearly $60 million this week. 

According to the Baltimore Business Journal, South Carolina-based Matthews Real Estate Investment Services listed Topgolf Baltimore for $59.3 million, which includes a 20-year "absolute net lease with Topgolf." 

The seller is MD Baltimore Warner LLC, an entity with a mailing address in Greenville, South Carolina. The property is featured in an investor deck on land owned by Caves Valley Partners and Caesars Entertainment and situated down the street from M&T Bank Stadium. 

"It's confirmed for sale. Can't comment any further," Josh Ein, First Vice President of Matthews Real Estate Investment Services, told CBS News. 

The timing of the sale is what piques our interest. The facility is not even a year old and is already on the chopping block.

It's possible that after nearly a year of demonstrating its revenue and expenses, the decision was made to cash out and move on, allowing someone else to assume the risk of operating the venue for two decades. 

Or maybe it's more complex, such as the geniuses who built the facility placed it in an imploding progressive-run metro area where Democrats in City Hall have refused to enforce common sense law and order. The facility is also situated blocks away from where the HBO hit The Wire was filmed two decades ago. 

Perhaps an interest rate shock spiraling parts of commercial real estate into a bust cycle is the reason. Topgolf, in general, also might be just a fad and or bubble, as Topgolf Philadelphia (opened in the summer of 2022) was just recently listed for sale. 

Meanwhile, Callaway Golf Company, which purchased Topgolf in 2021, has seen shares tumble 63% since the acquisition. 

It's still unclear why the Baltimore Topgolf is up for sale. What raises eyebrows further is the listing of the Philadelphia location. 

Could Topgolf be facing challenges? Or, more broadly, has the popularity of golf reached its peak?