{"id":1004360594,"date":"2019-10-16T02:39:15","date_gmt":"2019-10-16T10:39:15","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004360594"},"modified":"2019-10-16T05:25:26","modified_gmt":"2019-10-16T13:25:26","slug":"blackstone-bets-on-bellagio-with-4-3b-deal","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/","title":{"rendered":"Blackstone Bets $4.3B on Bellagio"},"content":{"rendered":"
\"Bellagio.<\/a>

Bellagio. Image by Ryan Lind via Pixabay<\/em><\/p><\/div>\n

Blackstone Real Estate Income Trust and MGM Resorts International have entered into an agreement to acquire the Bellagio in Las Vegas through a $4.3 billion sale-leaseback deal. BREIT will hold a 95 percent stake in the joint venture, while MGM Resorts will retain 5 percent of equity interest and will continue to manage the property and handle all aspects of day-to-day operations. The transaction is expected to close in the fourth quarter of 2019.<\/p>\n

\n

READ ALSO:<\/strong> Blackstone Strikes $2.9B Deal for Great Wolf Resorts<\/a><\/p>\n

\n

The joint venture is anticipated to collect an initial annual rent of $245 million. The lease is set to feature an initial 30-year term with two 10-year extension options for MGM. The purchase price represents 17.3 times the rent, with the acquisition to be funded through a combination of cash and $3 billion in new property-level debt. The fixed-rate loan carries a 10-year term, according to an SEC report released by BREIT.<\/p>\n

The Bellagio takes up 77 acres at the center of the Las Vegas strip and features a total of 3,933 keys, 200,000 square feet of meeting and ballroom space, a roughly 155,000-square-foot gaming floor and 94,000 square feet of retail space. The property was part of a portfolio awarded with Four Green Globes<\/a> certifications in 2017.<\/p>\n

Attractive fundamentals <\/h2>\n

BREIT\u2019s decision to invest in the iconic resort was partly due to the metro\u2019s strong market fundamentals<\/a>\u2014in 2018, population growth in Las Vegas was four times the U.S. average, while the number of inbound air-travelers was up 3 percent and revenue per available room on the strip increased by 5 percent year-over-year through July, also per the SEC report. Additionally, hotel and casino development has been limited since 2010.<\/p>\n

In another deal that emphasizes Las Vegas’ healthy market, MGM Resorts entered into an agreement to sell Circus Circus Las Vegas for $825 million to real estate mogul Phil Ruffian. The deal is also expected to close in late 2019, with the purchase price to comprise $662.5 million in cash and a $162.5 million note due in 2024.<\/p>\n

The casino opened in 1968 and features a 5-acre indoor amusement park dubbed Adventuredome, 37 acres of festival grounds and a 10-acre RV park. MGM Resorts has owned the asset since 2005, when it was added to the company\u2019s portfolio through the Mandalay Resort Group merger.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a joint venture with MGM Resorts, Blackstone Real Estate Income Trust has agreed to buy the iconic Las Vegas resort.<\/p>\n","protected":false},"author":240,"featured_media":1004360597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21751,21783,1593,21742,15],"tags":[33131,33129,34682],"class_list":["post-1004360594","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-hotel","category-investment","category-las-vegas","category-latest","category-west","tag-mgm-resorts-international","tag-the-blackstone-group","tag-u-s-securities-and-exchange-commission"],"acf":[],"yoast_head":"\nBlackstone Bets $4.3B on Bellagio - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blackstone Bets $4.3B on Bellagio\" \/>\n<meta property=\"og:description\" content=\"In a joint venture with MGM Resorts, Blackstone Real Estate Income Trust has agreed to buy the iconic Las Vegas resort.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-16T10:39:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-10-16T13:25:26+00:00\" \/>\n<meta name=\"author\" content=\"Timea-Erika Papp\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/10\/bellagio-1697233_1920.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/\",\"name\":\"Blackstone Bets $4.3B on Bellagio - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/10\/bellagio-1697233_1920.jpg\",\"datePublished\":\"2019-10-16T10:39:15+00:00\",\"dateModified\":\"2019-10-16T13:25:26+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/f58a713dcbdcb5aab2648af2aa04d6ae\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-bets-on-bellagio-with-4-3b-deal\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/10\/bellagio-1697233_1920.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/10\/bellagio-1697233_1920.jpg\",\"width\":1853,\"height\":1436,\"caption\":\"Bellagio. 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