Boyne to Sell, Lease Back Cypress Mountain
SAM Magazine-Boyne, Mich., Nov. 14, 2005-Boyne USA, Inc., is selling Cypress Mountain, B.C., and the scenic Gatlinburg Sky Lift to CNL Income Properties Inc., a real estate investment trust (REIT)-and then leasing them back. The $47.5 million agreement is expected to close by the first quarter of 2006.
CNL Income Properties will own 100 percent of the properties, including improvements and leasehold interests. Boyne USA will continue to operate both properties under a 20-year lease term with four, five-year renewal options. Cypress will be home to freestyle events during the 2010 Olympics.
"The industry is ripe for aggregation and consolidation and we chose CNL Income Properties as our partner," said Boyne USA President of Eastern Operations Stephen Kircher.
Cypress Mountain is located 20 minutes from downtown Vancouver. It is consistently ranked the second most visited ski resort in British Columbia, with approximately 354,000 skier visits in 2004. The Gatlinburg Sky Lift in Gatlinburg, Tenn., is open year-round and has attracted more than 400,000 tourists each year for the past five years.
The agreement represents the latest in a number of ski-related property acquisitions for Orlando-based CNL Income Properties. In December 2004, the company acquired a majority interest in 408,000 square feet of retail and commercial space at seven resort villages owned by Intrawest, including Whistler Creekside at Whistler Blackcomb and the Village of Baytowne Wharf at Sandestin Golf and Beach Resort in Sandestin, Fla. \