The Crested Butte News Serving the Gunnison Valley since 1999
“Steady as she goes”
Last week the Denver Post ran a story announcing a decision by the real estate investment trust company CNL Lifestyle to list seven of its 17 resorts for sale. The news caused a quiet uproar in the upper Gunnison Valley as residents and business owners attempted to determine what the announcement meant for Crested Butte Mountain Resort (CBMR), a CNL-owned resort since 2008.
The short answer is: Not much.
According to communications manager Erica Reiter, CBMR is not being listed for sale, nor will the other listings affect operations at CBMR in any way.
“The real part of the story is that we have a very secure lease,” said Reiter in an email. “That will not change under new ownership when and if in the future they do need to dissolve this asset [as part of the real estate investment trust regulations].”
Reiter went on to say that one of the reasons CBMR was sold to CNL in the first place was for the long-term financial opportunities and backing that would be provided.
“What CNL wants is a healthy organization,” said Reiter. “That’s really up to us as operators.”
In a statement to the press, CNL managing director Steve Rice said the specific details of the sale listings of the seven resort villages is confidential; however, the properties, which collectively total 426,000 square feet of commercial real estate, are performing well.
“Given the current market conditions, we decided it was the right time to explore potential buyers’ interest in these villages,” said Rice. “If we sell, we would not expect any changes in day-to-day operations for our tenants.”
In addition, Rice told the Denver Post, at CBMR, CNL is “steady as she goes,” and noted the company’s support of CBMR’s continued work to expand onto Snodgrass.
When the Mueller family sold to CNL back in December 2008, the Wall Street Journal reported the sale, which also included the Mueller-owned resorts of Okemo and Sunapee, was worth $132 million. At the time, Tim Mueller said, “We feel good about the deal. This company has pursued us for a couple of years and the time seemed right. They seem like a good match. It provides a place to go for stable capital.”
Reiter said that feeling continues today.
“One of the reasons we sold to them in the first place was the long-term financial opportunities and backing,” she said.
