Great America park to close within 11 years
SANTA CLARA >> The Great America theme park's final rides are in view now that one of the Bay Area's biggest real estate developers has bought the land beneath the iconic Santa Clara amusement center for $310 million.
The beloved amusement park is set to shutter within the next 11 years.
Prologis, a mega-developer whose specialties include industrial centers and logistics hubs, bought the land from Cedar Fair, which has been attempting to chop debt, including through asset sales such as the land deal in Santa Clara.
“We chose Prologis as our partner because of their deep ties in the Bay Area and their reputation for working closely with local communities on large developments,” said Richard Zimmerman, chief executive officer with Ohiobased Cedar Fair.
CBRE, a commercial real estate firm, arranged the property deal, which will lead to the shutdown of the park in no more than 11 years, although the exact timing is unclear.
Under the terms of the agreement, Prologis paid $310 million to Cedar Fair to buy the land. Prologis simultaneously agreed to lease the land back to Cedar Fair.
“Cedar Fair will continue to operate the park for a period of up to 11 years and then will close existing park operations at the end of the lease term,” the company stated on June 27. Cedar Fair is one of the nation's largest operators of regional amusement parks.
Cedar Fair bought the land from the city of Santa Clara in 2019 in the wake of the dissolution of municipal redevelopment agencies orchestrated by the state government to help address a prior budget crisis.
Prior to the 2019 transaction, Cedar Fair had leased the land beneath the park for roughly 40 years.
“The sale and lease agreements allow us to monetize a high-value asset in the heart of Silicon Valley at a very attractive multiple,” Cedar Fair CEO Zimmerman said in a prepared release.