Hard Rock International has unveiled a further expansion of its US based gaming portfolio, after completing the purchase of Jack Cincinnati Casino alongside Vici Properties.
Through the joint purchase Hard Rock acquired the operating assets of the casino, with Vici gaining the casino-entitled land and real estate and related assets of the property, located in downtown Cincinnati, Ohio, for approximately $558m in cash.
Simultaneous with the closing of the transaction Vici entered into a triple-net lease agreement with HRI, encapsulating a total annual rent of $42.75m and an initial term of 15 years, with four 5-year tenant renewal options.
“We are thrilled to close the Jack Cincinnati transaction, diversifying our geographic exposure by acquiring one of only four full-scale casino properties in the limited license state of Ohio, which continues to be one of the healthiest and fastest growing regional gaming markets across the country,” noted John Payne, president and COO of Vici Properties.
“This acquisition adds 22 acres of high-quality urban core real estate to our portfolio, and formally establishes our third tenant relationship through a long-term partnership with Hard Rock, an international leader in gaming, entertainment and hospitality experiences.”
The casino will continue to operate under the current branding, Hard Rock Casino Cincinnati will rebrand and open in spring 2020.
The property is situated on 22 acres of downtown Cincinnati and features 100,000 square feet of gaming space with approximately 1,800 gaming machines and 100 table games.
Additionally, the entity contains 33,000 square feet of meeting space as well as six restaurants and two bars. New property improvements will be announced by Hard Rock at a later date.
“We look forward to offering our world-class experience to guests in the region, building upon our success in the greater Cleveland area,” stated Jim Allen, chairman and CEO of Hard Rock International. “On behalf of more than 45,000 employees worldwide, we welcome over 1,000 former Jack employees into our Hard Rock family.”