Dive Brief:
- Realty Income has signed a definitive agreement to make an $800 million perpetual preferred equity investment in the real estate of Las Vegas’ CityCenter complex, comprising Aria Resort & Casino and Vdara Hotel & Spa, the company announced Tuesday.
- The property is owned by funds affiliated with Blackstone Real Estate, which will retain 100% of the common equity ownership. MGM Resorts International will continue to operate Aria and Vdara.
- The deal builds on Realty Income’s strategic relationship with Blackstone Real Estate, which began in 2023 when Realty Income acquired common and preferred equity interests in the Bellagio Las Vegas.
Dive Insight:
Through this latest investment, Realty Income investors will see “a favorable initial yield and IRR [internal rate of return] profile,” CEO Sumit Roy said in Tuesday’s release.
Meanwhile, the deal will return significant capital to Blackstone investors, while preserving the owner’s stake “in a world-class resort,” said Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate.
The investment represents Realty Income's second investment with Blackstone Real Estate, following the pair’s 2023 Bellagio Las Vegas joint venture in which Realty Income invested approximately $950 million to acquire common and preferred equity interests in the resort.
At the time, Realty Income said it stood to benefit from the Bellagio’s appreciating real estate value and increasing demand for the Las Vegas market. The CityCenter deal gives Realty Income access to another “one of the Las Vegas Strip’s iconic properties,” Roy said in the Tuesday release.
Aria and Vdara include gaming, lodging, luxury retail and upscale dining space, with approximately 5,500 rooms and 500,000 square feet of convention space combined.
Through the deal, expected to close Dec. 9, Realty Income retains a right of first offer on a future sale of the common equity interests in the CityCenter real estate by Blackstone, per the release.
The deal comes after MGM Resorts, among other Las Vegas operators, reported steep RevPAR declines in the third quarter of 2025.
Elsewhere in the market, MGM is rebranding NoMad Las Vegas to The Reserve at Park MGM. The operator also wrapped a $300 million remodel at MGM Grand Hotel & Casino last month.
