An affiliate of PARC Management LLC entered into a related $312-million stock purchase agreement on Jan. 10 to purchase the properties from Six Flags. CNL will purchase and leaseback the properties to PARC Management, which will operate the parks under a long-term, triple-net lease agreement.

The parks to be acquired in the transaction are a 978-acre combination theme and water park resort with 43 rides in Darien Lake in Buffalo; a 62-acre combination theme and water park with 53 rides in Elitch Gardens, CO; Frontier City, a 113-acre western theme park with 34 rides in Oklahoma City; White Water Bay, a 21-acre tropical themed water park in Oklahoma City; Splashtown, a 53-acre water park with 13 water rides in Houston; Waterworld, a 23-acre water park with more than 20 rides in Concord, CA; and Wild Waves & Enchanted Village, a 67-acre combination theme and water park with 55 rides in Seattle.

A $1.8-million investment was made at Splashtown over the past two years, including park improvements and new rides. Wild Waves & Enchanted Village has received $24 million in capital improvements since 2000.

CNL president and CEO R. Byron Carlock tells GlobeSt.com that the parks were non-core assets for Six Flags. "We believe we are buying them at a cyclical low," Carlock. "They are important assets in their regional markets."

PARC Management plans to realign the operational strategy of the parks to focus on regional markets. "These are notable properties and we believe our business processes aimed at guest safety and satisfaction will help make them even more attractive regional family entertainment destinations in the years to come," PARC Management president and CEO Randal Drew says.

The acquisition will add to CNL Income Properties' portfolio of lifestyle assets, including water parks, family entertainment centers, theme parks, ski resorts and golf courses. In recent years, the company has acquired interests in approximately $1 billion in the lifestyle and recreation sectors. "This acquisition fits in beautifully with our broader investment strategy," Carlock says. "We are trying to keep a diversified portfolio."

At an investor conference in December, Six Flags CEO Mark Shapiro reported the company was in talks with several parties concerning the sale of up to nine parks, as GlobeSt.com previously reported. No specific parks were mentioned at the time.