Bankruptcy Sale – Yavapai Downs, Prescott Valley, AZ

Description: Bankruptcy Sale – With an asking price of $12,715,000, this is a one of a kind opportunity to acquire a well-established horse racetrack facility in the highly desirable Prescott Valley, Arizona area.  Next to Prescott, one of the fastest growing cities in the country, this one-mile thoroughbred and quarter horse track rests in a high desert plain at the base of the Mingus Mountains, a beautiful mountain range with Pines, Aspens, Oaks and the beautiful Oak Creek running through it.  Yavapai Downs is strategically located 50 miles from Sedona and 90 miles from Phoenix.  Parimutuel Horse racing started in the City of Prescott in 1939 with Prescott Downs.  Although a successful operation, and the home of summer horse racing, Prescott Downs was unable to expand to meet the growing demand so it closed its doors in September of 2000. The new track, Yavapai Downs at Prescott Valley, took over where Prescott Downs left off, but with a much larger facility to operate. 

Given its 5,100 ft altitude, Yavapai Downs is 20 to 30 degrees cooler in the summer than its competing tracks in Phoenix (Turf Paradise) and Tucson (Rillito Park).   While the average high in Prescott Valley in July is only 89°, it averages 99° in Tucson and 106° in Phoenix.

According to the published 2012 schedules, Turf Paradise is scheduled to run races from October 1, 2011 to May 6, 2012 and Rillito Park is scheduled to run races from February 11, 2012 to March 25, 2012.  If a new operator acts quickly, they may still be able to have Yavapai Downs open for racing during its traditional Memorial Day to Labor Day season.  Even though there are other race tracks in Arizona, there is little overlapping competition because Yavapai Downs is open when the other locations are too hot for the horses. During the off-season, Yavapai Downs hosts other events including horse and dog shows, barrel races, the County Fair and exhibitions.  Motorcycle, ATV and other dirt racing activities can be held on its separate motor cross track.

In 2001, over 35,000 people were on hand for the grand opening of Yavapai Downs at Prescott Valley over Memorial Day weekend. Betting for the inaugural day of racing reached $580,755.

The Facilities
Located on 124.5+/- acres, this recently closed facility has all of the improvements needed to run a top notch operation, including:

Horse Race Track – A one mile race track featuring ideal sand and loam safe surface, Fontana railings throughout, and a distance of 1,020+/- ft from last turn to finish line.

Grandstand Building – Built in 2001, this is a 93,328+/- sf, four-story building, designed in Southwestern style motif patterned after Del Mar race track in San Diego California.  It has bleacher-style seating, administrative offices, a full commercial kitchen, restaurants and bars, betting areas, 3 elevators, a photo finish area, and locker rooms. The grandstand also includes 5,850+/- sf of open balcony area. 

The seat capacities are:

2nd floor
Stadium-style seating: 610
Box-area seating: 96 boxes, 4 seats per box = 384 box seats

3rd floor
Dining room table seating (4 seats per table):
Lower deck, 22 tables; platform deck, 22 tables; upper deck, 21 tables
Bar seating: 20 seats
Bar-area seating: 14 tables
Private room seating: 12 tables for two on the windows; seating for 60 others throughout the room

4th floor
Private Room; Capacity app. 20

Holding/Testing Barn – This is a 3,840+/- sf, steel-framed barn with three open sides, a restroom, one office, two test stalls, and a storage/hay area.  (A 2009 appraisal quotes the building as being 9,120 sf).

Maintenance Building – A 4,800± sf, steel pole framed building with a 20’ x 20’ concrete slab.  (A 2009 appraisal quotes the building as being 7,200 sf).

Stable Restroom Buildings – Two 672± sf concrete block stable restroom buildings. Each building has a men’s restroom (3 toilets, 3 sinks, and 1 large shower) and a women’s restroom (4 toilets, 2 sinks and 1 large shower). 

Horse Stalls – 862 stalls, each measuring 12’ x 12’, metal construction, several buildings with tack rooms.

In addition to the horse racing facilities, the property has a motor cross track with bleacher seating, gates and fencing, and an announcer box. 

The Equipment
While Yavapai Downs has been closed for over a year, it is mostly a turn-key operation.  Much of the equipment remains at the location.  All inventory of equipment can be made onsite before bidding.

Intangible Property
Transfer of Liquor License 06130043, issued by the State of Arizona, Department of Liquor Licenses and Control, Alcoholic Beverage License, for “Bar”.

Transfer of website, http://www.yavapaidownsatpv.com, and its content.

Yavapai Downs Headed to Auction April 3 - Article by The Daily Courier

Inspections: By Appointment

For more information about Yavapai County & the Arizona Department of Racing, please see:
http://www.co.yavapai.az.us/
http://azracing.gov/

Directions: From I-17, take Exit 262 (AZ-69) North towards Prescott, proceed for 21.5 miles and then turn right onto Fain Road, proceed for 7.2 miles and then turn right onto AZ-89, proceed for 2.8 miles to the entrance of the property on the right side.

Summary of Terms: Please see the Motion to Sell for the complete Terms of Sale.  Interested bidders must provide evidence to Trustee’s counsel of the ability to close the transaction in accordance with the terms provided for in the Motion to Sell at the higher bid price. Interested bidders must contact and provide all requested data to Trustee’s counsel, Adam B. Nach, Lane & Nach, P.C., 602-258-6000 x 306, no later than the close of business on Thursday, March 29th, 2012 at 5:00 PM MST, and must bring a cashiers check to the auction for $50,000.00.

In cooperation with George Cunningham of Cunningham & Associates, Inc and AuctionAZ.com, LLC.