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.
