Wynn Resort to Sell the Encore Boston Harbor to Realty Income

Wynn Resorts has just announced that they will be selling their land to Realty Income for $1.7 billion. The real estate company is buying the land and all the real estate assets in Encore Boston Harbor. The announcement comes just shortly after Wynn Resorts announced that it will sell all its online gambling units at a high discount.

The high-end resort selling their land has not come as shocking news to many. Most resorts and hotels related to casinos have been selling their properties at a high rate after the effects of the COVID-19 pandemic escalated.

The pandemic has led to the closure of several businesses, especially businesses that involve social gatherings and activities.

Details on the Lease
The first annual rent on the lease is $100 million with a 30-year contract and a renewal option. The rent will increase by 1.75 percent in the first ten years, and a Consumer Price Index (CPI) topped at 2.50 percent over the remaining years on the lease.

Realty Company will be paying an additional rent of $20 million for the land and assets related to Wynn Resorts in Encore Boston Harbor. The additional rent comes with a specified cap rate and will be paid for six years after the completion of the transaction.

The 13 acres of land on Broadway in Everett, MA, will remain the property of Wynn Resorts. The resort has plans to build an expansion unit with extra parking and other amenities that are not related to casinos or gaming.

Source: https://www.usgamblingsites.com/news/wynn-resort-to-sell-the-encore-boston-harbor-to-realty-income/