California's Great America amusement park is changing hands; future uncertain
SANTA CLARA, Calif. - The owner of California's Great America has sold the popular South Bay amusement park.
Cedar Fair released a statement this week announcing the sale of the Santa Clara park for $310 million to Prologis, a San Francisco-based real estate company.. Great America has been around since 1976.
The pending sale means the park's doors could close in six years, under the terms of a real estate agreement filed Monday with federal regulators.
"We kind of expected this was coming," said Christian Malesic, the CEO and president of the Silicon Valley Central Chamber of Commerce. "With the price of land in Slicon Valley going up, up, up and there doesn't seem to be any stop, it's hard for a park that covers so much acreage like Great America to make the kind of revenue it needs to make this stay open."
Cedar Fair also has an option to extend the lease agreement with Prologis by up to five additional years for a total of as many as 11 years, the SEC documents show. Prologis, however, has the option to end the lease early as long as it provides a 2-year notice.
Cedar Fair says it looked to sell the park since 2021, hoping to reduce its debt and invest more money in its other resort properties.
"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," CEO Richard Zimmerman said. "For our investors, the sale and lease agreements allow us to monetize a high-value asset in the heart of Silicon Valley at a very attractive multiple."
Prologis provided the following statement to KTVU:
"Prologis is excited to make this investment in Santa Clara. As an experienced real estate company headquartered in the Bay Area, we know the community and local businesses well. We look forward to working with local government on the long-term plan for the land, which will be done through collaborative discussions with the city and local community."
In the meantime, a spokesperson at Great America says park goers will not see any change in procedures at the park. In fact, the park is planning to "roll out a full lineup of immersive entertainment, seasonal festivals, and culinary events as planned and for years to come."