-
ARIA Resort Las Vegas – Image Credit MGM Resorts International
Realty Income Corporation will make an $800 million preferred equity investment in the real estate assets of CityCenter Las Vegas, including ARIA Resort & Casino and Vdara Hotel & Spa.
Realty Income Corporation has entered into a definitive agreement to invest $800 million in the real estate assets of CityCenter Las Vegas. The investment involves a perpetual preferred equity stake in the ARIA Resort & Casino and Vdara Hotel & Spa, properties owned by funds affiliated with Blackstone Real Estate. Blackstone will maintain full common equity ownership, with MGM Resorts International continuing to operate the properties.
This transaction marks Realty Income’s second collaboration with Blackstone Real Estate, following a joint venture involving Bellagio Las Vegas completed in 2023. As part of this announcement, Realty Income has increased its 2025 investment volume guidance to over $6 billion.
The preferred equity investment is expected to yield an initial unlevered return of 7.4%, with annual capped escalators beginning on the fifth anniversary of the closing. An early redemption premium is applicable if the investment is redeemed before the fourth anniversary. Realty Income will also have a right of first offer on any future sale of Blackstone’s common equity interests in the properties.
The ARIA Resort & Casino and Vdara Hotel & Spa are located on the Las Vegas Strip and include approximately 5,500 rooms and 500,000 square feet of convention space. The properties are subject to an existing triple net lease with annual rent escalators and have about 26 years remaining on the initial term, plus options for three 10-year extensions.
The transaction is expected to close on December 9, 2025, subject to customary closing conditions. Financial advisors for Blackstone include J.P. Morgan, Citi, Deutsche Bank, Goldman Sachs, and Evercore. Legal counsel for Blackstone is provided by Simpson Thacher & Bartlett LLP, while Latham & Watkins LLP represents Realty Income.
