November 15, 2018
VICI Properties Inc. and Penn National Gaming, Inc. agreed to acquire the Greektown Casino-Hotel in downtown Detroit from Jack Entertainment LLC, for roughly $1 billion in cash. VICI Properties will acquire the land and real estate assets of Greektown for roughly $700 million, and Penn National will acquire the operating assets for approximately $300 million.
VICI Properties will enter into a triple-net lease agreement with Penn National for the eight-acre property. The initial total annual rent is $55.6 million at an implied capitalization rate of 7.9%, for 15 years, with four 5-year renewal options.
VICI Properties John Payne says, “As the only casino located in Detroit’s historic Central Business District, Greektown, and its 30-story hotel tower, are ideally situated. Downtown Detroit is benefiting tremendously from billions of dollars of investment across the residential, commercial, entertainment and cultural infrastructure.”
The deal is expected to close in mid-2019. Jack Entertainment is owned by Quicken Loans Inc. Chairman Dan Gilbert.
For comments, questions or concerns, please contact Dennis Kaiser