The Hard Rock Rocksino Northfield Park, situated 17 miles from Cleveland, is to soon have new owners, after MGM Growth Properties LLC (MGP) agreed a $1.06bn deal with Milstein Entertainment LLC.
Funding the purchase through “a combination of cash on hand and debt,” MGP has also stated an intention to sell the licenses and operating assets to a third party operator.
The real estate is to be retained, with $50m-$60m in rent annually the expectation, and the deal is expected to close in the second half of 2018, pending the closure of customary conditions and regulatory approvals.
Brock Milstein, Chairman of the Board at Hard Rock Rocksino Northfield Park, said: “Since opening our doors in December 2013, the Hard Rock Rocksino has established itself as the premier gaming and entertainment destination in the market, thanks to our dedicated employees, partners and loyal guests.
“MGM Growth Properties has many options and opportunities to invest all over the country, so we are especially proud and grateful that they have chosen to make such a meaningful investment in Ohio.”
The property consists of 2,300 video lottery terminals, two entertainment venues, a 1,900 seat music arena and 250 seat event space, year round racetrack and a number of retails, food and beverage outlets.
James Stewart, Chief Executive Officer of MGM Growth Properties, added: “MGP is proud to announce the acquisition of the Hard Rock Rocksino, the best performing gaming asset in Ohio.
“We are thrilled to join the Northeast Ohio community and look forward to continuing to work with the management team to consummate the transaction and identify a third-party tenant to operate the asset going forward.
“This attractive addition to our portfolio is expected to result in mid to high single digit percentage accretion to AFFO per share, demonstrating again our commitment to generating value for our shareholders.
“This transaction represents another significant step in executing on our business plan to sustainably grow our AFFO per share while diversifying our high-quality asset and tenant base.”