Wynn Resorts completes sale and leaseback of Encore Boston Harbor

December 2, 2022 3:00 PM

Wynn Resorts completes sale and leaseback of Encore Boston Harbor

Photo: Shutterstock
  • Rege Behe, CDC Gaming Reports
December 2, 2022 3:00 PM
  • Rege Behe, CDC Gaming Reports
  • Massachusetts
  • Commercial Casinos

Wynn Resorts December 1 completed a deal for the sale of Encore Boston Harbor’s land and real estate assets to Realty Income Corporation. The $1.7 billion cash sale, previously announced earlier this year in February, represents a 5.9% cash cap rate with all necessary regulatory approvals finalized.

Net proceeds of the sale result in Wynn’s global liquidity position of $4.4 billion.

Wynn Resorts will continue to operate Encore Boston Harbor through a triple net lease arrangement with Realty Income. The lease has an initial annual rent of $100 million for a term of 30 years, with one 30-year renewal option. The rent escalates annually at a 1.75% rate for the first 10 years, and the greater of 1.75% or CPI (capped at 2.5%) over the remaining initial lease term.

Encore Boston Harbor, located on the Mystic River waterfront in Everett, Massachusetts, includes a 211,000 square foot casino, 671 hotel rooms, 16 dining and lounge venues, and approximately 71,000 square feet of ballroom and meeting spaces.

Rege Behe is lead contributor to CDC Gaming Reports. He can be reached at rbehe@cdcgaming.com. Please follow @RegeBehe_exPTR on Twitter.