City Center, home to the Aria casino and Vdara hotel, is getting a significant economic boost that underscores the Strip’s ongoing appeal to big investors.
Realty Income, a national real estate investment trust best known for paying monthly dividends, is investing $800 million in the resort complex, according to a news release. Realty Income projects an initial yield of 7.4 percent and potential increases after five years.
The deal is a preferred stock investment, meaning Realty Income will earn a steady return on its capital while Blackstone Real Estate, which owns the property, has full control.
MGM Resorts International will continue to operate both properties.
“This investment highlights the value of iconic Las Vegas properties,” said Realty Income President and CEO Sumit Roy. “It provides attractive returns while supporting a world-class destination on The Strip.”
The City Center is leased on a triple net basis, meaning that MGM covers operating costs, while the rent rises annually.
The investment marks Realty Income’s second partnership with Blackstone in Las Vegas. The companies previously joined in a Bellagio casino joint venture in 2023.
“We are excited to reach this agreement and expand our partnership with Realty Income,” said Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate. “This preferred stock investment is a fantastic outcome for our investors as it returns significant capital while preserving our ownership of a world-class resort in the heart of the Las Vegas Strip.”
The center deal is expected to close on December 9.
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
