VICI Properties Inc. acquires JACK Cleveland Casino and JACK Thistledown Racino for $833M

VICI Properties Inc. acquires JACK Cleveland Casino and JACK Thistledown Racino for $833M
FOX19 NOW/file

CLEVELAND, Ohio (WOIO) - VICI Properties Inc. has entered an agreement with JACK Casino to acquire the Cleveland area afiliates.

According to VIVI the price of the purchase was approximately $843.3 million in cash.

VICI will take over JACK Cleveland Casino, located in downtown Cleveland and JACK Thistledown Racino, located in North Randall.

Snippet from the press release:

Simultaneous with the closing of the transaction, the Company will enter into a master triple-net lease agreement with JACK Entertainment related to the assets. The master lease will have an initial total annual rent of $65.9 million, for an implied capitalization rate of 7.8%, and an initial term of 15 years with four 5-year tenant renewal options.

“We are excited to partner with the team at JACK Entertainment as they focus on investing and operating in the Cleveland market. Ohio continues to be one of the healthiest and fastest growing regional gaming markets and we are thrilled to add high-quality, urban real estate to our portfolio at an attractive capitalization rate.
John Payne, President and Chief Operating Officer of VICI Properties

The move is expected to close in early 2020.

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