VICI Properties has signed an agreement with Great Wolf Resorts to provide a mezzanine loan for upgrades to the Great Wolf Lodge Coast Texas. The company agreed to a loan for up to $127m.
Great Wolf Lodge Coast Texas has laid out plans for a 532-room indoor water park. The resort officially announced construction plans for the project in a recent release. Great Wolf Resorts expects to complete the water park during the last half of 2024.
The term of the mezzanine loan is for three years, with the possibility of adding two additional 12-month extension periods that are subject to certain conditions. In accordance with a construction draw schedule, VICI intends to fund the project with its cash on hand.
VICI said in a statement: “This transaction represents VICI Properties’ third mezzanine loan investment with Great Wolf for a total capital commitment of $265.5m as part of the company’s strategic arrangement to provide up to $300m of mezzanine financing to support the funding of the development of Great Wolf’s domestic and international indoor water park resort pipeline.”
Great Wolf Resorts is a fully integrated resort company. Its first location opened in Wisconsin during 1997.
The company has expanded to include several resorts throughout the US. Great Wolf Lodge has opened resorts in Wisconsin, Ohio, Michigan, Kansas, Virginia, Texas, Washington State, Massachusetts, North Carolina, Colorado, Georgia, Minnesota, California, Illinois and Arizona, as well as in the Canadian province of Ontario.
Great Wolf Resorts also has two current construction projects underway in Florida and in Maryland.