Bally’s partners with private investor for $500m sale leaseback for future site of Bally’s Chicago
Bally’s Corp. has closed a transaction with one of Chicago’s real estate private equity firms to acquire for $200 million the Tribune Publishing Center site where Bally’s Chicago will be built.
Under the terms of the agreement, Bally’s entered into a ground lease to lease back the site.
The ground lease includes an initial 99-year term, followed by 10 separate 20-year renewals at Bally’s option. As part of the transaction, as specified construction milestones are completed, at Bally’s request, an additional $300 million will be funded for Bally’s Chicago’s development through the ground-lease structure.
“This transaction is an important step in our development plan for Bally’s Chicago as we continue to work toward opening the temporary casino in mid-2023. With this new real estate partnership, Bally’s has ample liquidity on hand to fund Bally’s Chicago without needing to access the capital markets,” said Bobby Lavan, CFO of Bally’s.