Vici Properties reported the previously announced acquisition of $843.3 m for Jack Entertainment, which saw the company buy two Ohio-based entities.
The company has acquired 100 per cent of the membership interest of Jack Ohio’s two subsidiaries, which operates Jack Cleveland Casino’s casino-entitled land and real estate and related properties, and Jack Thistledown Racino’s racing and video lottery-entitled land and real estate and related assets, located about 10 miles southeast of downtown Cleveland in North Randal.
The real estate investment trust has entered into a master triple-net lease agreement with Jack Entertainment’s asset-related subsidiaries concurrently with the closing of the sale.
This sees an initial $65.9 m annual total rent and an initial 15-year term with four five-year renewal options for tenants. The corporation has closed a $50 m loan to a Jack Entertainment subsidiary that bore interest at a rate of 9% per annum.
John Payne, president and chief operating officer of Vici Properties, explained: “We are thrilled to close the transaction with Jack Entertainment, adding our fifth tenant to our portfolio and increasing our exposure to the limited license state of Ohio, which continues to be one of the healthiest gaming markets across the country.
“This acquisition adds two new, high-quality assets to our portfolio and represents our ability to creatively structure transactions that meet the needs of our tenants while creating value for our shareholders.”
Jack Cleveland Casino opened in Cleveland city centre in May 2012 and features about 96,000 square feet of gaming space, 1,300 gaming machines, over 120 table games and eight food and beverage outlets.
Jack Thistledown Racino opened in North Randall, Ohio in April 2013 and is hailed as “Cleveland MSA’s leading thoroughbred racino” Located on 129 acres, the property includes about 57,000 square feet of gaming space, 1,459 gaming machines and six food and beverage outlets.