Realty Income is investing $800 million into Blackstone’s CityCenter real estate, while Blackstone keeps full ownership and MGM continues to run ARIA and Vdara.
Blackstone Real Estate said on Monday that Realty Income will invest $800 million in the real estate behind CityCenter Las Vegas, the home of the ARIA Resort & Casino and Vdara Hotel & Spa. Blackstone’s funds will continue to own the properties, which remain operated by MGM Resorts International.
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Under the agreement, Blackstone will retain 100% of the common equity in the property. Realty Income’s preferred investment carries an initial unlevered return of 7.4%, with capped annual escalators beginning in year five.
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