Gaming and Leisure Properties has entered into an agreement to sell the entities holding the gaming licenses and operating assets of The Meadows Racetrack and Casino outside Pittsburgh for $138 million to Pinnacle Entertainment. The deal includes the 180,000 square foot casino, 3,170 slot machines, 74 table games and 11 poker tables along with multiple restaurants and bars, a bowling alley and a racetrack.
The property includes a 155-room hotel, which opened in April 2015 and is located adjacent to the casino. At closing, Gaming and Leisure Properties and Pinnacle will enter into a 10 year triple-net lease for The Meadows real estate assets. Pinnacle will pay an initial annual rent of $25.5 million, of which $14 million is the base rent and approximately $11.5 million percentage rent.
“As a premier operator of high quality regional gaming assets, Pinnacle is well suited to maximize the operating potential of The Meadows while the escalator provisions in the lease enable GLPI to participate in the long-term success of the property. This transaction allows us to unlock value in the asset while growing and diversifying our rental income,” said chairman Peter M. Carlino.
