Wow. Bretton Woods owners to buy Loon and two Tahoe resorts

[Tin Woodsman]

is lease a "lease to own" sort of deal? or is this an indefinite lease? i am curious if the long term plan is to buy it back or not. funny how corporations work in ways no sane individual ever would. could you imagine buying a house then selling it out just to lease it, heh!

This happens all the time. There are thousands of individuals who buy houses simply to rent them out in the hope that the rent (the lease payment) covers their monthly nut. This is obviously more complex, but it's the same theme.

Private equity firms are swimming in cash these days, so they can borrow at ridiculously attractive rates. If you could buy a $500,000 house at a 1% interest rate (30 yr mortgage), your monthly payment would be just over $1600. Is it reasonable to assume you could rent that house out for more than your monthly cost? Probably.

Regardless, at the end of the day, these are purely real-estate plays. Wall St is a very unoriginal crowd. They see what's happening with Ginn (Minturn/Burke), Tamarack, Yellowstone Club, Haystack, Bear Creek and Intrawest, and they want to jump on board the trend. I don't happen to agree the market for second homes is very attractive right now, but a number of firms are making money on the right locations. Eventually, one (or likely a few) of these deals will go south when someone tries to go "a bridge too far" and does something stupid like buying Wachussett with an eye towards real estate profits.

Be prepared for more of these deals, with Steamboat likely going under the hammer in the not too distant future.

 

[riverc0il]

This happens all the time. There are thousands of individuals who buy houses simply to rent them out in the hope that the rent (the lease payment) covers their monthly nut. This is obviously more complex, but it's the same theme.

i understand it makes sense in the business world, but disagree that it is the same theme. it is more akin to the state of NH leasing out sunapee than a homeowner situation. people don't rent out the homes they live in (unless it is a timeshare type thing which is different), they buy and rent other properties or buy a two family home and rent out half, etc. that is different than renting out the home you live in, or in the case of booth creek, the ski areas they work at. obviously, business and residential worlds are completely different in this sense, but it still amuses me how little value businesses put on long term ownership in place of short term profitability, but that is what drives the market.