BusinessTN

A round of golf never looked so good to developer John “Thunder” Thornton.

The powerful real estate mogul last year landed an eight-year, $500 million deal with famed golfer Greg Norman to build Tennessee National, the largest golf course and residential community in the state to be located off Highway 72 in Loudon County.

Thornton, who owns Thunder Enterprises in Chattanooga, isn’t much of a golfer (to Norman’s chagrin), but other investors’ love of the game could drive his net worth into the state’s top echelon.

“I’ve never done this large of a project before. I’m hopeful that this relationship will continue to grow,” Thornton says.

Executives at Medallist Developments, a Florida-based joint venture between Greg Norman’s Great White Shark Enterprises and Macquarie Bank of Australia, Norman’s native country, wanted to capitalize on the investment potential of the so-called “half back” market—mostly retirees from the north who travel Interstate 75 to Florida, then come half way back to Tennessee.

This is the golfing great’s fifth U.S.-based community and golf course development, and he plans to own a home here as well. “I’m amazed by the beauty of this area. It’s truly a magnificent site,” Norman says of the 1,450 contiguous acres of land along the Tennessee River that Thornton purchased from Eastman Chemical Co. for $10 million in 2000.

Medallist broke ground in November 2004 and by late May had signed its 75 founding golf and country club members, consisting mostly of Loudon County locals, generating upwards of $2 million with virtually no formal advertising. These members were given special real estate incentives.

One of those founders is Bob Mohney, owner and president of Knoxville-based Saddlebrook Homes, who has set his sights on building condominiums at Tennessee National. The entire community is expected to house about 1,700 residential units with a mix of townhomes, condos, small-lot detached homes and larger waterfront estate homes. There are also a slew of amenities planned, such as a community recreation center, tennis facilities, parks, walking trails and a full-service marina.

Taking on a project of this magnitude is huge for Thornton and Loudon County and one that surprisingly has come about with almost no opposition. That’s because Norman is an outspoken advocate of caring for the environment and avoiding the “slash and burn” approach to designing golf courses that was prevalent in the 1970s and 1980s. “We spend a lot of time and attention to detail. We take [locals] by the hand and walk them through the field,” Norman says, adding that it has been easy working in Loudon County.

Pat Phillips, president of the Loudon County Economic Development Agency, says Tennessee National will a have short- and long-term impact on the mostly rural county’s economy from construction contracts to property tax revenue increases. He estimates that the new residents will nearly double the population of the City of Loudon, which is now about 6,800. And, where there are rooftops, retail opportunities crop up. This new development “will have a significant impact on retail development because it’s all based on households and distances to commercial centers,” Phillips says.

For now, Tennessee National’s goal is to sell the next level of charter memberships while Norman gets the golf course ready for a summer 2006 tee time.