Gaming and Leisure Properties, Inc. (GLPI) has acquired Tioga Downs Casino Resort’s real estate assets from American Racing & Entertainment for $175m.
Along with the real estate deal, GLPI and American Racing signed a triple-net master lease agreement for an initial 30-year term.
Per the terms of the agreement, initial annual rent will be $14.5m, representing an 8.3% capitalization rate.
GLPI Chairman and CEO Peter Carlino commented, “We are pleased to add Tioga Downs to our portfolio and the new relationship with American Racing to our tenant roster. Tioga Downs further diversifies our portfolio, expanding it to 62 properties across 19 states with 8 tenants. American Racing has 20 years of gaming, horseracing and hotel experience, marking another addition to our portfolio of leading gaming operator tenants.
“Tioga Downs is a high-quality, recently expanded asset with significant geographic protection from competition. We look forward to the start of a fruitful partnership with American Racing. Our initiatives to further expand our portfolio remain active in the current environment as our reputation as the gaming landlord of choice is strengthened.”
Tioga Downs Casino Resort offers players 895 slots and 29 table games, along with a FanDuel Sportsbook on its 32,600 square-foot gaming floor.
The New York property also features an 18-hole championship golf course, a 160-room hotel, 5/8-mile harness horse track and seven food and beverage locations.
American Racing Founder and CEO Jeff Gural shared the company’s excitement to collaborate with GLPI.
He said, “We are excited to partner with the team at GLPI as we continue to grow our business at Tioga Downs. Our locals-oriented property has a well-protected feeder market with no competition within 85 miles and a very loyal following. Its location largely insulates it from gaming expansion in the downstate New York region.
“GLPI is a great steward of regional casino assets, and we are excited to begin this new relationship. I’m also personally looking forward to becoming a GLPI unitholder.”
