Over the past five years, real estate transactions have surged in popularity in Las Vegas, largely due to the separation of land and casino operations.
In the present times, it is useful to determine whether a “casino” sale involves the land or the operations. An operations sale will inevitably alter the experience within the casino, while a sale of land or real estate is simply that.
MGM Resorts pioneered the method of split deals through its “asset light” strategy. Rather than owning the land upon which its Las Vegas casinos are built, the company rents it from a landlord while still running the casinos.
This approach isn’t exclusive to MGM; numerous casinos on the Vegas Strip now have distinct land owners and casino operators.
In the past year, operators have changed at the Venetian, Mirage, Cosmopolitan, and Tropicana. The real estate under these casinos also has some new owners.
Casino real estate deals in Las Vegas do not always include the casino itself. Station Casinos, over the years, has amassed hundreds of acres of land in Las Vegas.
The company retains land on which it intends to construct casinos, while selling off land for which it has no plans.
As the company aims to double its portfolio by 2030, there is a considerable amount of negotiating and trading taking place.
Station Casinos sells 126 acres across from recent land purchase
In July, Station Casinos acquired 126 acres of land south of Mandalay Bay for $172 million. This parcel of land is situated 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 immediate plans for the land. As this area of Las Vegas continues to grow, HCA may decide to hold onto the land and eventually build a new hospital.
Station Casinos demolished Fiesta Henderson, Fiesta Rancho, and Texas Station last year with plans to sell the land. The city of Henderson bought the land that Fiesta Henderson previously occupied.
The company has also offloaded 21 acres of land near Durango Casino that they had no plans of developing. Currently, the property is under construction and is projected to open before the year ends. Meanwhile, the other piece of land is still up for sale.
In September, Wild Wild West casino, owned by Station Casinos, was shuttered and razed on Flamingo Road near the Vegas Strip. The firm possesses 80 acres of untouched terrain adjacent to the 20 acres from Wild Wild West. There are no current plans for this land. It is possible that Station Casinos might construct a new casino near the Vegas Strip or sell the land. Both scenarios are plausible as the property in this area could command a high price.
Station’s Inspirada plans
Station Casinos recently acquired land in Henderson with plans to construct a comprehensive casino hotel in the Inspirada area.
This property is intended to be a typical Station Casinos property according to the plans. The Las Vegas Review-Journal reports that the company will construct the property in three stages. In time, Inspirada will feature 80,000 square feet of gaming space, along with:
- 4 restaurants
- An eating hall featuring 11 different food establishments.
- Multiple bars
- A bowling alley
- Movie theater
- Retail shops
- Bars
- Meeting space
The plans are scheduled to be approved by the Henderson City Council in a vote on March 7.
Look forward to more news on Station Casinos’ land developments and sales in the coming year. The company holds a considerable amount of land with significant plans.
Mandalay Bay and MGM Grand land sold
Recently, VICI Properties Inc., a Real Estate Investment Trust (REIT), completed a transaction to acquire the total real estate of Mandalay Bay and MGM Grand for roughly $1.27 billion. MGM Resorts will persist in leasing the land until at least 2050.
More than 30 casinos throughout North America, including a substantial portion of the real estate on the Vegas Strip, are based on land owned by VICI. The company’s holdings encompass the real estate of these casinos:
- Caesars Palace
- Excalibur
- Luxor
- Harrah’s
- Mandalay Bay
- Mirage
- MGM Grand
- Park MGM
- New York-New York
- The Venetian
VICI owns a significant amount of land on the Vegas Strip that doesn’t include casinos. Their real estate holdings include T-Mobile Arena, Caesars Forum Convention Center, and MSG Sphere. The MSG Sphere is currently under construction and is expected to be completed before the year ends.
VICI also possesses 27 acres of unoccupied land behind Horseshoe (previously known as Bally’s), Paris, and Planet Hollywood. Furthermore, the company holds the option to buy an additional 28 acres situated behind The Linq and Flamingo.
VICI is not the only Real Estate Investment Trust (REIT) that owns land on the Vegas Strip. Gaming And Leisure Properties (GLPI) also holds the real estate of Tropicana and M Resort, with intentions to further expand their Las Vegas property portfolio.
The Bellagio real estate and a part of the land under the Cosmopolitan are owned by Blackstone Real Estate Income Trust (BREIT).
While the landowners might not significantly influence a casino’s daily operations, they could impact the overall experience. A deal was made between VICI and Hard Rock that will enable Hard Rock to make structural changes, including the construction of a new guitar tower hotel.
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