The REI team is advising Gaming and Leisure Properties, Inc. (GLPI) on its entry into a binding agreement with the Oakland Athletics to build their new Major League Baseball stadium on a portion of the Tropicana Las Vegas property owned by GLPI along the Las Vegas Strip. The property is currently ground-leased by GLPI to Bally’s Corp., the operator of the Tropicana Hotel and Casino. Under the binding agreement, GLPI will transfer to the A’s approximately nine acres of the 35-acre site, upon which the A’s will build a new 30,000-seat baseball stadium with retractable roof as part of a “sundial” master plan for the overall site, which will eventually include construction of a major new hotel and casino resort by Bally’s. Per its operating model as a net-lease REIT, GLPI will have the opportunity to fund at least $175 million of the construction and developments cost in exchange for additional rent payments under Bally’s ground lease.
The ballpark is expected to welcome more than 2.5 million fans and visitors annually.
GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.
For additional details on the agreement, please read the press release.