VICI Inks $843M Cleveland Casino Deal

VICI Properties Inc. and an affiliate of JACK Entertainment LLC have agreed that VICI will acquire JACK Cleveland Casino, in downtown Cleveland, and JACK Thistledown Racino, in nearby North Randall, Ohio, for about $843.3 million in cash. The announcement comes barely a month after VICI closed its $558 million acquisition of JACK Cincinnati Casino.

At the same time, VICI will enter into a master triple-net lease agreement with JACK Entertainment related to the Cleveland and North Randall assets. The master lease will have an initial total annual rent of $65.9 million, for an implied cap rate of 7.8 percent, and an initial term of 15 years, with four five-year tenant renewal options. VICI will also provide a $50 million loan secured by certain non-gaming real estate assets of Rock Ohio Ventures LLC, JACK Entertainment’s parent entity.

Read more at Commercial Property Executive