From our first t-ball game to our football state final in high school, youth sports make up some of our fondest memories. Now that we’re all grown up, we want the kids in our communities to have the same experience. The increasing demand for state-of-the-art facilities to support youth and amateur sports presents promising opportunities for investors to capitalize on the industry’s momentum and support their communities in big ways, like one deal our Calloway Title team recently helped close.
LakePoint Sports: A Record-Setting Travel and Sports Destination
Based in the greater Atlanta area, the 1,300-acre LakePoint Sports campus is a premier destination for athletic and corporate events. It serves athletes in more than 30 sports year-round, including baseball, basketball, volleyball, soccer, lacrosse, football, gymnastics and cheer. With five million square feet of existing amenities and big plans for the future, including the addition of on-site hotels, restaurants, retail, ziplines, water parks and more, LakePoint Sports is currently the largest sports vacation community in the world, according to the World Record Academy. Its 16 major league baseball fields, 14 soccer/lacrosse fields, 15 fast-pitch softball and junior baseball fields, 20-acre wake park, two Miracle League fields, and 196,000-square-foot indoor facility also make it the largest installation of synthetic sports surfacing in the world.
A commercial real estate project of this size is no easy feat, and when it came to the title search, there was a lot of land to cover. Our team at Calloway Title worked diligently to ensure the property was free and clear of any title defects that could prevent or delay development. We were thrilled to help close this deal to support the health and development of Atlanta youth and our greater community.
Positive Impacts of The Youth Sports Industry
There are plenty of reasons to love youth sports. Not only do they foster teamwork, discipline and a healthy lifestyle among young athletes, but they are also drivers of economic development. Youth sports complexes can draw in millions of local and out-of-state visitors annually. According to this article, a successful facility can lead to growth opportunities in the adjacent hospitality, real estate, dining and retail sectors, which can benefit local property values and regional economic impact. “This sector’s direct spending impact was valued at $39.7 billion in 2021 alone,” according to SportsETA’s 2021 industry report. Wintergreen Research Inc. predicted the youth sports market will grow at a compound annual growth rate of 8.9% until 2028.
Investing in Youth Sports: Key Considerations
Is an investment in the youth sports industry right for you? “When invested wisely and strategically, investments in the future of youth sports could provide not just financial returns but also the enrichment of communities and the nurturing of young talent,” according to this article. Here are a few things to consider before entering into this space:
Research and Due Diligence
Not every youth sports center is successful; like any investment, it’s important to research before getting involved. Understanding market trends, potential returns and the specific needs of sports communities with an in-depth feasibility study is crucial. Evaluating existing facilities and identifying gaps can help investors make informed decisions. It also helps to understand failures and why some communities failed. One cautionary tale exists with Legacy Park in Mesa, Arizona, which you can read about here.
Local Competition and Customer Service
Because the youth sports industry is booming, visitors have options, meaning investors have competition. So, to attract visitors, facilities need to be top-notch. Creating a welcoming and supportive environment for athletes and their families is essential for building a loyal customer base. Thoughtful partnerships and ensuring facility operators and managers exceed guest and customer expectations can help with this. Focusing on innovative technologies can, too. “This includes advanced systems like sports lighting, as well as on-field innovations such as smart backstops and robotic umpires,” states this article.
Shifts in Participation
Another consideration is shifts in youth sports participation, which can vary seasonally and regionally. Investors need to consider these fluctuations when planning their operations. Developing strategies to attract visitors year-round, such as offering diverse sports or events and off-season deals like Pickle and Social in Gwinnett County, Atlanta, can help mitigate the impact of seasonal changes. Venues can also consider building multipurpose playing surfaces.
Learn more about LakePoint Sports here, and remember that Calloway Title can handle your complex deals in any state. Visit www.titlelaw.com to work with us!
