Casino Landlord Making Investments To Move Beyond Gaming
NEW YORK (August 30, 2023) -- VICI Properties Inc. (NYSE: VICI) an experiential real estate investment trust, announced recently that the Company provided the previously announced mortgage financing secured primarily by Canyon Ranch Tucson and Canyon Ranch Lenox in an amount of $140,135,000.
Canyon Ranch Spa Tucson is at 8600 E Rockcliff Road in Tucson.
The proceeds from the mortgage financing were used to refinance Canyon Ranch’s existing CMBS secured by these two assets. The mortgage financing has an initial term of two years with three one-year extensions, exercisable at Canyon Ranch’s option, subject to satisfying certain customary extension conditions.
The investment is part of the New York-based company's plan to expand its property holdings beyond its 49 casinos, which include Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas. The firm has a growing array of investing and financing partnerships with so-called experiential non-gaming property operators, including Great Wolf Resorts, Cabot and Chelsea Piers. Vici also owns four championship golf courses.
The mortgage financing is part of the previously announced VICI-Canyon Ranch Growth Partnership, in which VICI entered into a call right agreement whereby VICI will have the option to purchase the real estate assets of each of Canyon Ranch Tucson and Canyon Ranch Lenox, subject to certain conditions. If the call right(s) are exercised, Canyon Ranch would continue to operate the applicable wellness resort(s) subject to a long-term triple net master lease with VICI and the transaction proceeds would be applied to repay the mortgage financing.
The $140 million mortgage financing was funded with cash on hand. The mortgage financing has an initial term of two years with three one-year extensions with option to purchase each of the two resorts' real estate assets.