VICI Properties has entered into a strategic arrangement with Great Wolf Resorts, a Blackstone Real Estate portfolio company, whereby VICI Properties may provide certain financing for the construction and development of Great Wolf Lodge resorts throughout the United States.
As part of this arrangement, VICI Properties has agreed to provide a $79.5 million mezzanine loan investment related to the development of the more than $250 million Great Wolf Lodge Mid-Atlantic project in Perryville, Md., which was announced today and is expected to be completed by the summer of 2023. The mezzanine loan has an interest rate of 8 percent and an initial term of three years with two successive 12-month extension options subject to certain conditions. The investment is expected to be funded in accordance with a construction draw schedule.
In addition, pursuant to a nonbinding letter agreement, VICI Properties will have the opportunity for a period of up to five years to provide up to