Over the past five years, real estate transactions have become extremely popular in Las Vegas. This can be attributed to the separation of land and casino operations.
In today’s times, it’s beneficial to determine if a “casino” is being sold for its land or its operations. If the operations are being sold, the casino’s interior experience will ultimately change. On the other hand, a sale of land or real estate is exactly what it seems.
MGM Resorts pioneered the trend of split deals through its “asset light” strategy. The company doesn’t actually own any of the land beneath its Las Vegas casinos. Rather, MGM operates the casinos while paying rent to a landlord.
This practice is not exclusive to MGM; many casinos on the Vegas Strip now have separate land owners and operators.
In the past year, operators for Venetian, Mirage, Cosmopolitan, and Tropicana have changed. The real estate under these casinos also has some new owners.
Not every real estate deal in Las Vegas involving casinos includes the actual casino. Station Casinos, over the years, has managed to amass hundreds of acres of land in Las Vegas.
The company retains parcels of land intended for casino construction, while selling off those without any plans.
The company’s plan to double its portfolio by 2030 has led to a lot of wheeling and dealing.
Station Casinos sells 126 acres across from recent land purchase
In July, Station Casinos acquired 126 acres of land situated south of Mandalay Bay for $172 million. This plot of land lies opposite another 56.6 acres of undeveloped land owned by Station Casinos.
Station Casinos recently sold 56.6 acres of land to HCA Healthcare for $62.3 million. HCA, the operator of Sunrise, Southern Hills, and Mountain View hospitals in Las Vegas, has not yet disclosed any immediate plans for the land. However, as this part of Las Vegas expands, HCA might potentially use the land to construct a new hospital.
Station Casinos demolished Fiesta Henderson, Fiesta Rancho, and Texas Station last year with the intention of selling the land. The city of Henderson bought the land that was formerly occupied by Fiesta Henderson.
The company has sold 21 acres of land near Durango Casino, which it did not intend to build on. Meanwhile, the other property is still up for sale. The property under construction is expected to be operational before the year ends.
In September, the Wild Wild West casino, owned by Station Casinos, was shut down and demolished. This property is located on Flamingo Road, near the Vegas Strip. Besides the 20 acres from the Wild Wild West, Station Casinos also owns an additional 80 acres of undeveloped land nearby. However, the company has not yet revealed any plans for this property. It is possible that Station Casinos might construct a new casino near the Vegas Strip or decide to sell the land. Either way, the highly-valued location of the property would not make either decision surprising.
Station’s Inspirada plans
Station Casinos recently acquired land in Henderson, intending to construct a comprehensive casino hotel in the Inspirada area.
The property is planned to be a standard Station Casinos estate as per the plans. The company will construct the property in three stages, according to the Las Vegas Review-Journal. In the end, Inspirada will boast 80,000 square feet of gaming space and other amenities.
- Four eateries
- An 11-eatery food hall.
- Several bars
- A tenpin bowling center
- Cinema
- Stores for consumer goods
- Bars
- Space for meetings
These plans are set to be voted on for approval by the Henderson City Council on March 7.
Anticipate hearing more updates about Station Casinos’ land developments and sales as the year progresses. The company owns a significant amount of land and has substantial plans for it.
Mandalay Bay and MGM Grand land sold
VICI Properties Inc., a Real Estate Investment Trust (REIT), recently concluded a transaction to acquire 100% ownership of the real estate housing Mandalay Bay and MGM Grand. The deal, worth roughly $1.27 billion, allows MGM Resorts to continue leasing the land until at least 2050.
More than 30 casinos across North America are established on land owned by VICI, with their holdings comprising substantial real estate on the Vegas Strip. The real estate of the following casinos are included in VICI’s portfolio:
- Palace of Caesar
- Excalibur
- Luxor
- Harrah’s
- Bay of Mandalay
- Mirage
- Grand MGM
- MGM Park
- New York to New York
- The individual from Venice
VICI also possesses a significant amount of property on the Vegas Strip that doesn’t include casinos. The company holds the real estate rights to T-Mobile Arena, Caesars Forum Convention Center, and MSG Sphere. The MSG Sphere is yet to be completed, with its opening anticipated before the year ends.
VICI also owns 27 acres of empty land behind Horseshoe (previously known as Bally’s), Paris, and Planet Hollywood. Furthermore, the company holds the purchasing rights for 28 acres located behind The Linq and Flamingo.
VICI is not the only Real Estate Investment Trust (REIT) that owns property on the Vegas Strip. Gaming And Leisure Properties (GLPI) also has ownership of the Tropicana and M Resort real estate, with intentions to further expand their Las Vegas property portfolio.
The Bellagio’s real estate and a part of the land beneath the Cosmopolitan are owned by Blackstone Real Estate Income Trust (BREIT).
The role of landowners may not be significant in the daily operations of a casino, but they could impact the overall experience. A deal was made between VICI and Hard Rock, allowing Hard Rock to implement structural changes, such as constructing a new guitar tower hotel.
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