CNL Lifestyle Properties Inc., a publicly registered, non-traded real estate investment trust (REIT) sponsored by CNL Financial Group, recently closed on the sale of Elitch Gardens Theme and Water Park, a 62-acre gated attraction and water park located in Denver. The buyer was KSE Elitch Gardens/Revesco/Second City LLLP, an unaffiliated Denver-based investor group. The sale price was $140 million.
In an SEC filing, CNL said that a portion of the proceeds from asset sales such as these “may be used to fund a special distribution to shareholders” which the company says could happen as early as the third quarter this year.
According to operating results for the first quarter, which ended March 31, total revenues decreased 0.5 percent year-over-year to $72 million. As of May 13, 2015, the company owned a portfolio of 67 lifestyle properties of which 24 properties are held for sale.
Lifestyle Properties announced in March 2014 that it had engaged Jeffries, an investment banking and advisor firm, to evaluate strategic alternatives with the goal of providing liquidity to its shareholders. In December 2014, the REIT reduced its NAV $1.65 per share to $5.20 per share.
According to the filing, the company is continuing to work with its financial advisor to explore and execute strategic liquidly alternatives for the balance of its portfolio however, the filing notes that there can be no assurances that the process will result in liquidity.
On December 22, 2014, the company entered into a definitive agreement to sell its entire senior housing portfolio to Senior Housing Properties Trust for $790 million. The portfolio is 38 properties strong, all of which were purchased since January 2011.