JACK Entertainment announces $843 million sale/leaseback deal with VICI Properties - cleveland.com

JACK Entertainment announces $843 million sale/leaseback deal with VICI Properties - cleveland.com

CLEVELAND, Ohio - Dan Gilbert’s JACK Entertainment announced Monday an $843 million sale/leaseback deal with VICI Properties real estate trust for JACK’s downtown Cleveland casino and suburban Thistledown Racino.

Both properties will continue to operate under the JACK name.

VICI Properties’ portfolio consists of 24 gaming facilities leased to such names as Caesars Entertainment, Penn National Gaming and Hard Rock International.

John Payne, President and Chief Operating Officer of VICI Properties said, “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."

JACK Entertainment said it would continue to invest in the Cleveland area.

“JACK Entertainment looks forward to continuing to operate JACK Cleveland Casino and JACK Thistledown Racino,” said Mark Dunkeson, Chief Executive Officer of JACK Entertainment.

“The combined efforts of our gaming properties together with the other Cleveland assets operated by our sister companies including the Cavs, Avenue Shops at Tower City and the May Company Building, have created a strong connection to the city and allows us to remain heavily committed to the Cleveland area. We will continue to invest significant capital into these properties which will have a lasting positive impact on the city and Cuyahoga County.”

This is second major deal involving JACK Entertainment and VICI Properties.

JACK announced a$780 million deal announced in April for JACK Entertainment to sell its Cincinnati casino along with Turfway Park in Kentucky to Hard Rock International and VICI Properties.

Yet JACK at the time decided to hold onto its casino in downtown Cleveland and racino at Thistledown in the Cleveland suburb of North Randall.

Monday’s deal announcement marks the third selloff in the last year for JACK, which in November 2018 announced a $1 billion agreement to sell its Detroit Greektown Casino-Hotel for $1 billion to Penn National Gaming.

Gilbert’s involvement in Ohio casinos traces to 2009, when interests tied almost entirely to Gilbert and those of Penn National Gaming spent $47 million on a campaign to win voter approval amending the state constitution to allow four Ohio casinos.

Ohio’s first casino opened in Cleveland in May 2012, a partnership between Gilbert-related companies and Caesars. It initially operated under the Horseshoe name. The same partnership opened the Cincinnati Horseshoe Casino a year later in March 2013.

In 2015, Rock Ohio Ventures bought Caesars’ 20 percent stake. Then JACK Entertainment was formed to rebrand and operate the properties under the JACK name.

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2019-10-28 11:39:53Z
https://www.cleveland.com/casino/2019/10/jack-entertainment-announces-843-million-saleleaseback-deal-with-vici-properties.html
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