The Hard Rock Rocksino Northfield Park Sale for US$1.06 Billion Closes
Date: July 2018
Location: Northfield Park, Ohio, USA
Name: Hard Rock Rocksino Northfield Park
No. of Keys: None…not a hotel! Just a 200,000 sq. ft casino! with five restaurant/cafe outlets, a 1876 seat auditorium,
Seller: Milstein Entertainment LLC, who developed the property in 2012, at a cost, then, of US$275m.
Northfield Park, Ohio’s premier racetrack and one of the nation’s top harness racing facilities, is situated on 115 acres located 15 miles south of Cleveland and 18 miles north of Akron, Ohio.
Northfield Park is a year round operation that conducts more than 200 nights of live racing a year and simulcasts both thoroughbred and harness racing 364 days a year.
Northfield Park was purchased by the Ohio based Milstein family in 1972.
Various Milstein companies have invested in excess of a billion dollars in Ohio business ventures and commercial real estate projects over the past 50 years.
Buyer: MGM Growth Properties LLC today announced that it has completed the previously announced acquisition of the Hard Rock Rocksino Northfield Park for approximately $1.06 billion. MGP funded the acquisition with cash on hand and borrowings under its senior secured credit facility.
“We are excited about the addition of the market leading Hard Rock Rocksino to our portfolio.
This transaction brings further geographic diversification and is expected to generate mid to high single digit percentage accretion to AFFO,” said James Stewart, Chief Executive Officer of MGM Growth Properties.
“We look forward to welcoming the Rocksino team, customers and partners into our portfolio and have entered into a new agreement with Hard Rock to continue to serve as the manager.”
“The success of the Rocksino is a true testament to our hard working and dedicated employees and our loyal customers,” said Brock Milstein, former Chairman of the Rocksino Board.
“The Rocksino is a perfect fit to MGP’s portfolio of high quality assets and I am certain that the legacy that has been created will continue for many years to come.”
MGM Growth Properties is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings, and obviously related to MGM Resorts International..
MGP currently owns a portfolio of properties, consisting of 11 premier destination resorts in Las Vegas and elsewhere across the United States, and the Park, a dining and entertainment complex which opened in April 2016.
As of December 31, 2017, these properties collectively comprise 27,541 hotel rooms, over 2.7 million convention square footage, over 100 retail outlets, over 200 food and beverage outlets and over 20 entertainment venues.
As a growth-oriented public real estate entity, MGP expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries that may be developed in the future.
Price: US$1.06bn
THPT Comment: Will the new owners add hotel rooms, as is increasingly becoming Hard Rock’s operational model rather than just gaming.
First Seen: Hotel News Resource