An IR Exclusive: Mountain High Has A Big New Lease On Life

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An IR Exclusive: Mountain High Has A Big New Lease On Life

By Craig Altschul
July 23, 2007

Mountain High, arguably Southern California's most exciting ski resort, has been sold to CNL Income Properties, Inc., the Orlando, Florida-based real estate investment trust company (R.E.I.T.) that is making more than a modest splash in the mountain resort industry (see IR 6/4/07). The Industry Report confirmed the $45 million dollar sale with both CNL and Mountain High sources late yesterday. You are reading it here first.

The strategically-located resort is 75 miles northeast of Los Angeles in Wrightwood. It has logged a high of 575,000 skier/snowboarder days in recent good snow years (of which 2006-2007 was decidedly not). There are 290 skiable acres, 59 trails, 16 chairs, and a Forest Service permit for 40 years.

Mountain High has been owned by Valor Equity Partners, a Chicago-based lower middle market private equity firm that purchased the resort in 2005. Mountain High Associates, led by President and CEO Karl Kupuscinski, will continue to operate the resort under CNL ownership.

"CNL gives Mountain High an unprecedented amount of financial backing," Mountain High Director of Marketing John Clark McColly told The Industry Report confirming the sale."We have just routine capital needs for this year, but the CNL ownership insures we can move ahead for tomorrow's needs."

Sources at CNL did confirm the purchase to The Industry Report, but refrained from discussing details or issuing a statement at this time because the SEC still is reviewing the purchase. The purchase and leaseback details were obtained from CNL's SEC filing. CNL has leased the resort back to Mountain High Associates to manage for an annual rent of $4,187,000. Any additional capital infused by CNL will be reflected in a higher lease payment. The term of the lease agreement is through 2027 with two, 10-year extension options. CNL will own 100 percent of Mountain High. CNL currently owns 50 percent of Bretton Woods Resort in NH and related properties, and 100 percent of Loon Mountain, NH; Northstar-at-Tahoe, Sierra-at-Tahoe, Calif.; The Summit at Snoqualmie, Wash.; Brighton, Utah; and Cypress Mountain, British Columbia. Stay tuned to The Industry Report for more breaking news. Our next issue is scheduled for Aug. 6.

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	Who's next?
	Posted by: Jim S \| July 23, 2007 04:53 PM