Gaming and Leisure Properties (GLPI) has acquired land under the Hard Rock Casino in Rockford, Illinois for $100m; entering a 99-year ground lease with 815 Entertainment.
Annual rent for the ground lease is $8m, subject to a fixed 2% annual increase beginning with the lease’s first anniversary and for the entirety of its term.
GLPI has committed to providing up to $150m of development funding via a senior secured delayed draw term loan that will be subject to a 10% interest rate.
The Hard Rock Casino in Rockford, IL will be approximately 177,000 sq. ft. featuring an approximate 60,000 sq. ft. gaming floor, with 1,250 slot machines, 50 table games, and in-person and online sportsbooks.
The project is currently under construction, with a total projected budget of approximately $358m and approximately $120m spent to date.
CBRE Securities acted as a financial advisor to Gaming and Leisure Properties.
SMBC Nikko Securities America and Jefferies LLC served as the exclusive financial advisors to 815 Entertainment, LLC.
Peter Carlino, GLPI Chairman and CEO, stated, “We believe this is an attractive ground lease transaction for our shareholders as the strong initial results at 815 Entertainment’s temporary facility demonstrate the strength of the location and the depth of the market.
"The Hard Rock brand will support and solidify the new casino’s position as a tourist destination and entertainment venue."
Jon Lucas, COO of Hard Rock International, commented, “Hard Rock’s incredible financial strength and development trajectory is only made stronger with great partners like GLPI and 815 Entertainment.
"We are really looking forward to opening another world-class entertainment property with Hard Rock Casino Rockford.”
