MGM Growth Properties To Buy Hard Rock Rocksino Northfield Park For $1.06 Bln

(RTTNews) - MGM Growth Properties LLC (MGP) said that it has entered into an agreement with Milstein Entertainment LLC to acquire the Hard Rock Rocksino Northfield Park for approximately $1.06 billion.

The membership interest purchase agreement will be for 100% of the issued and outstanding limited liability company interests in Northfield Park Associates LLC, which owns and operates the Rocksino.

The Rocksino is a gaming, dining and entertainment facility located in Northfield, Ohio, a suburb approximately 17 miles southeast of downtown Cleveland and 18 miles north of Akron. The property, which sits on 110 acres, consists of the 200,000-square foot gaming facility which features over 2,300 video lottery terminals, a variety of retail and food and beverage outlets, as well as entertainment venues, including a 1,900-seat music venue and a 250-seat event space. It also includes a year-round horse racetrack and a gas station and car wash.

MGP plans to fund the purchase price with a combination of cash on hand and debt. MGP expects to ultimately sell the entities holding the licenses and operating assets to a third-party operator. MGP intends to retain ownership of the real estate, anticipating $50 to $60 million of annual rent, which is expected to represent approximately 1.8x rent coverage.

The transaction is expected to close in the second half of 2018 and is subject to customary closing conditions and regulatory approvals.