VICI Properties and Penn National Gaming have entered into a contract to acquire the real property and operations of the Greektown Casino-Hotel in downtown Detroit, Michigan. The partners will pay an aggregate purchase price of approximately $1bn in cash. Under the terms of the agreement, VICI Properties will purchase the land and real estate assets of Greektown for approximately $700m, while Penn National will buy the operating assets of Greektown for approximately $300m.
At the time of closing, VICI Properties will enter into a triple-net lease agreement with Penn National related to Greektown. The lease will have a total annual rent of $55.6m for an implied capitalization rate of 7.9 percent, with an initial 15-year term and four five-year renewal options.
Opened in 2000, Greektown Casino-Hotel features 100,000 sq ft of casino space, approximately 2,700 gaming machines and 60 table games, a poker room, three restaurants, five quick-serve food outlets, three bars and a coffee shop. The property also houses an AAA Four Diamond 400-room, luxury high-rise hotel with 14,000 sq ft of event and catering space. The complex employs approximately 1,800 people.
