VICI Properties completed the acquisition of JACK Cleveland Casino and JACK Thistledown Racino from JACK Entertainment for $843m.

VICI Properties, an experiential real estate investment trust, completed the acquisition of JACK Cleveland Casino, located in downtown Cleveland, Ohio, and JACK Thistledown Racino, located approximately 10 miles southeast of downtown Cleveland in the city of North Randall, Ohio, from JACK Entertainment for an aggregate purchase price of approximately $843m in cash. Simultaneous with the closing of the transaction, the company entered into a master triple-net lease agreement with subsidiaries of JACK Entertainment related to the assets. The lease has an initial total annual rent of $65.9m and an initial term of 15 years with four 5-year tenant renewal options. The tenant’s obligations under the lease will be guaranteed by Rock Ohio Ventures. The company also closed on a $50m loan to a subsidiary of JACK Entertainment, which bears interest at a rate of 9.0% per annum and is secured by certain real estate assets of Rock Ohio Ventures. “JACK Entertainment looks forward to continuing to operate JACK Cleveland Casino and JACK Thistledown Racino. The combined efforts of our gaming properties together with the other Cleveland assets operated by our sister companies including the Cleveland Cavaliers, Avenue Shops at Tower City and the May Company Building, have created a strong connection to the city and allows us to remain heavily committed to the Cleveland area. We have invested more than $700m into JACK Cleveland Casino and JACK Thistledown Racino since the properties opened in 2012 and we will continue to invest significant capital into these properties which will have a lasting positive impact on the city and Cuyahoga County,” Mark Dunkeson, JACK Entertainment Chief Executive Officer.