MGM Growth Properties completed its $1.06 billion purchase of a Cleveland-area Hard Rock casino property Friday, giving the real estate investment trust its first location outside of its parent MGM Resorts International.
The REIT is buying the land and buildings associated with the Hard Rock Rocksino Northfield Park, which includes a 200,000-square foot casino and the Northfield Park harness racetrack. MGM Growth funded the acquisition with cash and borrowings under its credit facility.
MGM Growth is acquiring the property from Milstein Entertainment LLC. Hard Rock will continue to operate the casino, which has more than 2,200 video lottery slot machines.
“We are excited about the addition of the market leading Hard Rock Rocksino to our portfolio,” MGM Growth CEO James Stewart said in a statement.
Stewart added the transaction “brings further geographic diversification” to the company.
MGM Growth owns the real estate and buildings associated with 11 hotel-casinos operated by MGM Resorts, including six on the Las Vegas Strip and the Borgata in Atlantic City. The REIT also owns The Park dining and entertainment area in Las Vegas.
MGM Growth, which is 70 percent owned by MGM Resorts, is also involved in the company’s planned purchase of the Empire Casino and Yonkers Raceway in New York.
