VICI Properties, a REIT focused on experiential real estate, has acquired the land and real estate assets of the Margaritaville Resort Casino, located in Bossier City, La., for $261 million in cash. In addition, Penn National Gaming will acquire the operating assets of the Margaritaville Resort Casino for approximately $115 million in cash. The aggregate purchase price payable in connection with the acquisition of the real property and operations of the Margaritaville Resort Casino is approximately $376 million in cash.
Simultaneous with the closing of this transaction, Penn National will enter into a triple-net lease agreement with VICI Properties. The lease will have an initial total annual rent of approximately $23 million and an initial term of 15 years, with four five-year renewal options.
Built in 2013, the property comprises approximately 4 acres of fee land and nearly 30 acres of leased land. The hotel and casino built on the fee land comprises approximately 26,500 square feet of casino space featuring 1,215 slots and 50 tables, 395 hotel rooms, an island-style escape theme, six restaurants and food and beverage outlets, and a 15,000-square-foot, 1,000-seat theater. Approximately 1,500 parking spaces are located on the leased land.
The transaction is expected to close in second half 2018.