And a Blackstone and MGM Growth Properties joint venture owned the underlying real estate of them, according to the Journal. The structure of that sale allowed MGM to operate the casinos at both hotels while paying Blackstone rent, according to the Journal. The sale is said to bring a profit of more than $700 million for Blackstone less than three years after it bought stakes in both hotels, WSJ reported.īlackstone bought the properties from MGM Resorts in 2020, in a deal that valued them at $4.6 billion. “Another noteworthy aspect of the deal is that the venture’s attractive debt structure will remain in place, with a fixed interest rate of 3.55 percent through 2030, a financing cost which could not be replicated in the current environment.”
“Aside from the size of the deal, the transaction is noteworthy given Vici’s partner and seller of the interest is Blackstone Real Estate Income Trust,” said Al Otero, portfolio manager at Armada ETF Advisors. SEE ALSO: CRE Loans’ Structures Shape Up Differently in Higher Interest Rate Environment
