Lexington, KY - As a rising tide lifts all boats, many people hope that the Alltech 2010 World Equestrian Games will spur increases in both sales of local farms and the prices they bring. However, the two individuals most knowledgeable about horse farm sales in Central Kentucky, real estate brokers Bill Justice and Arnold Kirkpatrick, are a bit more cautious.
"I think the effect of the WEG on equestrian real estate in Central Kentucky will be secondary, rather than primary," Kirkpatrick stated. "After all, the Games are going to last for two weeks, so I don't think anyone in their right mind will buy a farm for a two-week event, like some of the people around here seem to think."
"I think the sellers are more interested than the buyers," said Justice. "We've had several sales close to the Horse Park that could be attributed not only to the World Equestrian Games, but what I think is more important, the increased facilities at the Horse Park itself."
Kirkpatrick agreed that the new infrastructure and improvements at the Kentucky Horse Park will increase farm sales. Referring to the millions spent at the Horse Park, he said that it "will result in it being undeniably the finest year-round venue for equestrian events in the world."
Kirkpatrick said such potential buyers aren't waiting for the WEG though. "People who are interested in equestrian disciplines of all types are already moving here from around the country and from around the world - and they're buying farms."
Most farms bought by people involved with hunters and jumpers and other sport horses are smaller - 20 to 50 acres - than the average Thoroughbred farm, which Justice said is about 175 acres. But some farms sold for sport horses have been larger, such as the former Gracefield Farm at the intersection of Iron Works Pike and Newtown Pike.
Renamed Spy Coast, its 313 acres sold for more than $9 million. The out-of-state buyers have sport horse farms on Long Island and in Wellington, Fla. Justice predicted that other horse farm owners in Wellington, a sport horse center, will purchase land here for satellite farms.
Justice has talked to potential farm buyers from out of state when they stop at his booth at the Rolex Kentucky Event. "We found that people wanted to move here, but had to sell property where they were living first. The economy there was worse than here."
"The Thoroughbred industry is what drives farmland prices," he said, and as nearly everyone knows, racing and other segments of that industry are not doing well. Justice said, "We've seen increased activity just recently, compared to what it's been in March and April. We don't know if it's a blip or longer lasting."
Both of these real estate specialists are cautiously optimistic about sales of horsefarm land during and after the WEG. Kirkpatrick noted, "I do think that some of the competitors and horse owners will come here, like what they see and decide they want to have a presence here, but I think the really smart ones are already looking around and they're just waiting for a little encouragement from the economy before they jump - no pun intended."
Justice also acknowledged the influence of slow economy in Europe and elsewhere on farm sales here. "Most of our international calls are from people in the Thoroughbred business, and their economy is worse than ours. As we get closer to the WEG, we'll get more calls. They'll want to lease farms."
Thinking long term, he agreed with Kirkpatrick. "Our hopes are that they'll see something they haven't seen elsewhere and become enamored with the Bluegrass and want to buy something."
Meanwhile, both Justice and Kirkpatrick have been in real estate long enough to be able to ride out slow times. Both men consider themselves lucky to be able to work in such a niche market. Kirkpatrick said that "the greatest bonus of this business is the people you get to met, people who almost inevitably become friends."
Justice had intended to be a commercial broker, but he "fell in love with the horse business and horse people."
Spending one's workdays driving along Bluegrass country roads is pretty special, too; Kirkpatrick recently listed "a place in Bourbon County - where there are a lot of hidden treasures - that would just rip your heart right out of your chest, it's so beautiful. I suspect something like 20,000 or 30,000 people a day drive by this place and never even know it's there."