Fun Deal: Amusement Park on Pier Sells for $34M

SANTA MONICA, CA-Florida-based REIT CNL Lifestyle Properties has acquired the Pacific Park amusement park on the Santa Monica Pier from Santa Monica Amusements LLC for $34 million. The property, which features the Pacific Wheel solar-powered Ferris wheel and a roller coaster among its rides and amusements, will continue to be operated by Santa Monica Amusements under a net-lease agreement.

Byron Carlock, president and CEO of CNL Lifestyle, describes the company's new acquisition as "an iconic property" and notes that the two-acre park features family-style entertainment with 12 rides, 18 midway games as well as multiple attractions, an oceanfront food plaza, entertainment and specialty shops. He points out that its location is on a nationally known historic pier that attracts more than four million visitors annually. The pier is familiar to people around the world, having appeared as a setting in a host of movies and television shows over the years.

CNL Lifestyle Properties now owns the ground lease and physical assets of Pacific Park, which will be leased by tenant Santa Monica Amusements and will continue to be run by CEO and general manager Mary Ann Powell. Powell has been managing Pacific Park for 13 years and will continue to be responsible for all operations as well as the development and execution of the park’s long-term plans. For park visitors, employees and the Santa Monica community, the operations of the park will not be impacted by this transaction, CNL said in its announcement of the deal.

Carlock said that the purchase of Pacific Park matches the Orlando-based REIT's strategy of owning properties that are located in or near large population centers. CNL Lifestyle Properties also owns three marinas, three ski resorts, two resort village properties, one family entertainment center, one water park and six golf courses in California. The acquisition of Pacific Park boosts the company’s amusement park portfolio to 22 nationally.