Realty Income Pens $900 Million CityCenter Deal in Las Vegas
Realty Income Corporation has agreed to make an $800 million perpetual preferred equity investment in the real estate of CityCenter in Las Vegas, Nevada.
CityCenter comprises the ARIA Resort & Casino and Vdara Hotel & Spa, owned by funds affiliated with Blackstone Real Estate. Blackstone will retain 100% of the common equity ownership, with MGM Resorts International to continue operating the venue.
Located at the center of the Las Vegas Strip, the ARIA features gaming, lodging, luxury retail and upscale dining space. It houses approximately 5,500 rooms and 500,000 square feet of convention space.
The property is subject to an existing triple net lease with annual rent escalators and around 26 years of the remaining initial term, plus three 10-year extension options.
Realty Income said it expects to close the transaction on December 9, subject to customary closing conditions.
Another Blackstone Investment for Realty Income
The agreement is Realty Income’s second investment with Blackstone Real Estate. It follows the Bellagio Las Vegas joint venture, which was completed in 2023.
“We are pleased to build on our strategic relationship with Blackstone Real Estate to invest in one of the Las Vegas Strip’s iconic properties,” said Sumit Roy, Realty Income president and CEO. “This represents an immediately accretive investment for Realty Income with a favorable initial yield and IRR profile, further demonstrating the value of our size, scale and diversification.
Jacob Werner, co-head of Americas acquisitions for Blackstone, added: “We are pleased to reach this agreement and grow our partnership with Realty Income. This preferred equity investment is a terrific outcome for our investors as it returns significant capital while preserving our ownership in a world-class resort at the heart of the Las Vegas Strip.”
In conjunction with the announcement, Realty Income is increasing its 2025 investment volume outlook to over $6.0 billion.
