Blackstone sells $800M stake in Strip casino, hotel

City Center, home to Aria casino and Vdara hotel, is getting a significant financial boost that underscores the Strip’s ongoing appeal to big investors.

Realty Income, a national real estate investment company best known for paying monthly dividends, is investing $800 million in the resort complex, according to a news release. Realty Income is projecting an initial return of 7.4 percent and potential increases after five years.

The deal is a preferred equity investment, meaning Realty Income will earn a steady return on its capital while Blackstone Real Estate, which owns the property, keeps 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 properties are leased on a triple net basis, meaning MGM covers operational costs, while rent rises annually.

The investment marks Realty Income’s second partnership with Blackstone in Las Vegas. The companies previously teamed up on a Bellagio casino joint venture in 2023.

“We are pleased to reach this agreement and grow our partnership with Realty Income,” said Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate. “This preferred equity investment is a terrific outcome for our investors as it returns significant capital while preserving our ownership in a world-class resort at the heart of the Las Vegas Strip.”

The City Center deal is expected to close Dec. 9.

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.