Vici $1.16B sale-leaseback with Golden
New York City-based REIT Vici Properties has agreed to acquire seven casino properties from Las Vegas-based Golden Entertainment for $1.16 billion and to enter into a triple-net master lease with a newly formed entity that will be owned and controlled by Blake L. Sartini, current chairman and CEO of Golden.
The entity will acquire Golden’s operating business in connection with the closing of the transaction. Golden’s portfolio includes: The Strat Hotel, Casino & Tower on the North Las Vegas Strip; Arizona Charlie’s Decatur and Arizona Charlie’s Boulder in the Las Vegas locals market; Aquarius Casino Resort and Edgewater Casino Resort in Laughlin, Nevada; and Pahrump Nugget Hotel & Casino and Lakeside RV Park & Casino in Pahrump, Nevada.
The Golden portfolio features more than 6,000 hotel rooms. The golden master lease will have an initial annual rent of $87 million, representing an acquisition cap rate of 7.5%, and an initial term of 30 years with four five-year tenant renewal options. Rent under the lease will escalate annually by 2% beginning in the third lease year.
By Rob Schneider