CBMR sells to Florida Company

The Muellers aren’t going anywhere

 

Crested Butte Mountain Resort has sold to a Florida-based real estate investment trust. CNL Lifestyle Properties, Inc, acquired the Mueller-owned Triple Peaks, LLC, Friday, December 5. Triple Peaks owned CBMR, the Okemo ski resort in Vermont and operated New Hampshire’s Mount Sunapee. As part of the deal, Triple Peaks will lease back the properties and run the operations aspect of the resorts.

 

 

  “I feel great,” commented Triple Peaks co-owner Diane Mueller on Friday. “In these economic times this allows our three resorts to move forward. The bottom line is that the Muellers aren’t going anywhere. We’ve been in this industry twenty years and we’re passionate about it. We can now focus on ski operations.”

Mueller said that because CNL is a REIT, the company, by law, cannot own property that isn’t developed. So while CNL purchased all the property needed to run the resort, they did not buy undeveloped property owned by Triple Peaks such as Prospect.

“They are good people and we’ve know them for years,” Diane said. “We trust them.  The banking industry is such that with the amount of growth we were looking at, to have a reliable lender was not always easy…so this is better.
We make a lease payment to them and they have committed to help with the red Lady Lodge,” she continued. “Now, for example if we want to pursue Cimmaron, we can to them and see if they are interested in partnering.”

“This transaction provides Triple Peaks the opportunity for immediate enhancement to these popular mountain destinations that will improve the overall skier experience and extend the resorts’ offerings for all four seasons,” stated Byron Carlock, president and CEO of CNL Lifestyle Properties in a press release. “Tim and Diane Mueller have positioned the properties of Triple Peaks for ongoing success. We are proud to establish a relationship with such seasoned and respected operating partners and enable them to carry out their vision for these properties over the long-term.”

The acquisition gives Triple Peaks management additional capital to build the Red Lady Lodge at Crested Butte Mountain Resort as well as some other projects at the other resorts.

“Our focus has been delivering outstanding service and a positive skier experience since we entered this industry with the purchase of Okemo in 1982,” said Tim Mueller, president and co-owner of Triple Peaks, LLC. “We anticipate that this new relationship with CNL Lifestyle Properties will enable us to continue to do what we do best — create a unique and memorable experience at our mountains for our visitors. With the stable capital and long-term focus of this relationship, we are in a stronger position than ever to enhance our resort operations to ensure our long term popularity.”

According to a memo sent by the Muellers to company employees on December 4, The “sale-leaseback” arrangement is a perfect fit for Triple Peaks.
“It is similar to leasing a car, retail space or other capital. The net effect of it is that we will still be the owners of the operating company, while CNL owns the underlying assets.
“As we said,” the memo continues. “the operating company is owned by us and we will have total control over the operations, personnel, marketing etc. Our employees will continue to be employed by us and operationally, everything will stay the same from the guests perspective and the employee’s perspective. They are strictly a landlord and financing entity.

Diane said the employees were told of the transaction ahead of time and she was pleasantly surprised by the level of understanding by the employees. “Nothing will change in their world,” she said. “Our plan will stay the same. No new people will be coming in. There won’t be another board that we’re accountable to. From Tim and mine’s perspective, we can devote 100% of our efforts to operations and we feel really good about it. We like the ski business.”

CNL Lifestyle Properties, Inc., formerly CNL Income Properties, Inc., is a real estate investment trust that owns a portfolio of 115 properties in the United States and Canada in the lifestyle and recreation sectors. Headquartered in Orlando, Fla., CNL Lifestyle Properties specializes in the acquisition of ski and mountain lifestyle, attractions, golf and other lifestyle assets. For more information, visit www.CNLLifestyleREIT.com