The sale of a longtime family-owned ski lodge in Southern California's San Bernardino Mountains may have a ripple effect on demand for nearby commercial properties that feed off the tourism generated by the winter sports destination.
Ski and snowboard resort operator Alterra Mountain bought the 240-acre Snow Valley Mountain Resort at 35100 CA-18 in Running Springs for an undisclosed sum, with plans to renovate the property, according to a statement. The resort is among a few larger ski and snowboarding destinations within driving distance of Southern California, a region with more than 20 million residents that's usually known for its sunshine, beaches and deserts.
Alterra Mountain plans to "conduct a thorough evaluation of Snow Valley’s base area facilities, on-hill infrastructure and IT systems to identify and prioritize prospective projects based on need, cost and guest impact," according to its website.
More details weren't made available to CoStar News and an Alterra Mountain representative did not respond to multiple requests to comment. Snow Valley opened in 1924 and features 1,041 feet in elevation change. The resort has a retail shop, eateries and a bar.
Alterra also owns nearby Big Bear Mountain Resort in Big Bear Lake, considered the premiere skiing and snowboarding resort in Southern California. Compared to Big Bear, Snow Valley is a budget ski resort known for its beginner-friendly terrain. Both resorts are located in the Inland Empire region.
The sale and planned investment in Snow Valley are expected to be a boost to commercial properties in Running Springs and surrounding communities, said Dae Hur, a real estate agent with KW Commercial. Hur is marketing a 32-room hotel in nearby Arrowbear Lake for $1.9 million, or about $59,000 a room, according to LoopNet, an online marketplace for commercial property owned by CoStar Group. Hur said the winter season is critical for commercial businesses in the San Bernardino Mountains.
"Of course, the ski resort's improvement will help businesses for sure," he said.
Snow Valley's sale arrives during an epic powder year for California, which has been drenched in rain in the lowlands and snow in the mountains. The sale also comes at a time of broader support for the ski and snowboard industry nationally. Vail Resorts, the publicly traded Broomfield, Colorado-based winter sport resort operator, said in a Jan. 8 statement that its season-to-date skier visits were up 12.5% year over year.
Rafael De Anda, associate director of market analytics in CoStar's Los Angeles office, said the investment in Snow Valley also may have a broader impact on attracting residents to live in the larger Inland Empire region.
"Capital investments in the region’s entertainment offerings drastically help balance the scales of live, work and play," De Anda said. "Industrial development has led to outsized job creation in the transportation sector in the Inland Empire, but job openings are going unfilled because population growth can’t keep up. Enhancing entertainment experiences will help drive more permanent residents to the area."