NATIONAL REPORT—MGM Resorts International and MGM Growth Properties LLC (MGP) today entered into an agreement whereby MGM Resorts will acquire all of the operating assets of the Hard Rock Rocksino Northfield Park from MGP and lease the real property associated with the Rocksino from a subsidiary of MGP.
MGM Resorts will pay total consideration of approximately $275 million, subject to customary working capital and other adjustments. The Rocksino will be added to the existing master lease between MGM Resorts and MGP and the annual rent payment to MGP will increase by $60 million. Consistent with the master lease terms, 90% of this rent will be fixed and contractually grow at 2% per year until 2022.
The Rocksino, which will be integrated into the MGM Resorts portfolio of gaming and entertainment destinations, is a gaming, dining and entertainment facility located in Northfield, OH. For the last 12 months, ending June 30, the Rocksino reported approximately $293 million in net revenues and approximately $94 million in Adjusted EBITDAM.
The transaction is expected to close in the first half of 2019 and is subject to customary closing conditions and regulatory approvals.
TriGate, TCOR Partnership Acquires First Property
TCOR Hotel Partners (TCOR) and TriGate Capital (TriGate) acquired the Holiday Inn Express & Suites – USF Tampa Busch Gardens in Tampa, FL. Financing for the project was provided by Inwood National Bank of Dallas. The 123-room hotel is in the North/Busch Gardens submarket of Tampa, FL. The transaction represents the first joint venture between TriGate and TCOR.
Rockbridge Acquires Hilton At The Arch in St. Louis
Rockbridge acquired the Hilton At The Arch hotel in downtown St. Louis, MO. The 195-room hotel will be managed by HEI Hotels and Resorts.
Rockbridge plans to capitalize on the historic value of the property by renovating its distinctive lobby along with guestrooms. This acquisition is the third property in the St. Louis area for Rockbridge.