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VICI Properties to Acquire JACK Cleveland Casino, JACK Thistledown Racino in $843.3M Sale-Leaseback Deal

JACK Cleveland Casino opened in May 2012 in the historic Higbee Building in Downtown Cleveland, featuring 96,000 square feet of gaming space.

VICI announced earlier this year the purchase of the JACK Cincinnati Casino and Turfway Park. VICI announced earlier this year the purchase of the JACK Cincinnati Casino and Turfway Park.

CLEVELAND—New York City-based VICI Properties has entered into a definitive agreement with an affiliate of JACK Entertainment to acquire the JACK Cleveland Casino here and the JACK Thistledown Racino in North Randall, OH, for $843.3 million in cash.

Simultaneous with the closing of the transaction, VICI will enter into a master triple-net lease agreement with JACK Entertainment. The master lease will have an initial total annual rent of $65.9 million, for an implied capitalization rate of 7.8%, and an initial term of 15 years with four 5-year tenant renewal options. The rent coverage ratio at closing is expected to be approximately 1.72x and the tenant’s obligations under the lease will be guaranteed by Rock Ohio Ventures LLC.

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John Jordan

John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.

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