Tucson’s Funtasticks Fun Park Sells in EPR and CNL $700M Transaction


TUCSON, Arizona — EPR Properties, a Kansas City-based publicly traded REIT and CNL Lifestyle Properties, Inc. have completed the last tranche of the previously announced acquisitions of the Northstar California Ski Resort, 15 attraction properties (waterparks and amusement parks) and five small family entertainment centers for aggregate consideration valued at $455.5 million. Additionally, the Company provided $251.0 million of five-year secured debt financing to funds affiliated with Och-Ziff Real Estate for its purchase of 14 CNL Lifestyle ski properties valued at $374.5 million.

Included in the final tranche of the acquisition was Arizona’s greatest fun park for all ages, Tucson’s 7-acre Funtasticks Family Fun Park at 221 E Wetmore in Tucson for $1.28 million ($113 PSF), with all the rides and attractions. The sale is part of a bulk sale that comes in at over $700 million total.

Since 1995, Funtasticks has been making priceless memories for birthday parties, church groups, team building events, corporate groups, and school functions in Tucson ‘for all ages’ or those who meet the minimum height requirement of 36 inches for the rides.

Popular rides and attractions at Funtasticks include:

  • Go Karts
  • Atlantis Laser Tag
  • Mini Golf
  • Bumper Boats
  • Arcade Games
  • Batting Cages
  • Kiddie Land with 5 attractions including the Kiddie Land Dragon Ride and a Kiddie Roller Coaster

EPR Properties’ aggregate initial investment in this transaction at closing, excluding capitalized transaction costs, was $706.5 million and was funded with $647.4 million of the company’s common shares, consisting of 8,851,264 newly issued, registered common shares, and $59.1 million of cash, before purchase price adjustments. The number of common shares issued was determined based on a price of $73.1421 per share, which was the volume weighted average price per common share on the New York Stock Exchange for the ten business days ending on April 4, 2017. ERP recorded the investment based on the April 6, 2017 closing price of $74.28.

“We are delighted to announce the acquisition of this portfolio of high quality ski and attractions assets that builds on our expertise in the Recreation segment,” commented Gregory Silvers, President and CEO of EPR Properties in a prepared statement. “Further, the transaction is not only expected to be immediately accretive, but it will also diversify our portfolio with proven, durable assets that are aligned with the positive trends we are seeing in the experience economy.”

Amusement Management Partners (AMP), a company chaired by former Ripley’s ‘Believe it or Not’ CEO Robert Masterson, will continue to manage the family entertainment centers, including Funtasticks and Wet ‘n Wild in Glendale, also part of the transaction.

Other parks (there are 15 in total) that are a part of the transaction include Darien Lake, Frontier City, Magic Springs, Wild Waves, Pacific Park, several Wet ‘n’ Wild parks, two Hawaiian Falls water parks.

Stephen H. Mauldin, CEO of CNL Lifestyle, stated, “Throughout its lifecycle, CNL Lifestyle Properties acquired a portfolio of unique assets, including some of the nation’s most iconic ski and attractions properties. The completion of the sale to EPR and Och-Ziff represents the 14th and final transaction since we formally launched our strategic liquidity process in early 2014 and marks a pivotal moment for the company and our shareholders. This transaction not only provides final liquidity for our investors, but also provides a strong future for these properties.”

The completion of the transaction follows the satisfaction of all conditions to the closing of the acquisition, including receipt of approval by the shareholders of CNL Lifestyle which was obtained on March 24, 2017.

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