MGM Resorts International and MGM Growth Properties – the casino operator’s real estate investment trust partner – closed the joint purchase of Empire City Casino and Yonkers Raceway in New York Tuesday, giving the gaming giant a foothold close to New York City.
MGM Resorts acquire the gaming complex for $850 million a day after New York gaming regulators approved the deal. MGM Growth acquired the 97-acre property and the buildings associated with the development for $625 million from MGM.
In the last three years, MGM Resorts has built a significant presence in the Northeast. The company acquired Borgata in Atlantic City and built MGM National Harbor in Maryland and MGM Springfield in Western Massachusetts.
“With this new addition to the MGM Resorts portfolio, we have now gained a foothold in the high-density New York City region and we look forward to leveraging the MGM platform to maximize value in this evolving marketplace,” MGM Resorts Chairman Jim Murren said.
MGM Growth, which is 70 percent owned by MGM Resorts, owns 11 resorts in Las Vegas and Ohio, which are managed by the casino operator. Empire City was added to the existing master lease between MGM Resorts and MGM Growth, and the initial rent payment to the REIT was increased by $50 million.
Empire City’s former owner, Timothy Rooney of the Rooney family, said the casino and racetrack have been left in “capable hands.”
“The potential for growth at Empire City has absolutely no boundaries,” Rooney said. “MGM will truly provide Empire City employees and the property’s guests with the resources and opportunities to make the casino and track into something we haven’t even yet realized.”
