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Bally’s Strikes $200M Deal for Ground Lease on Chicago Casino Site
Bally’s Corporation has closed a transaction with one of Chicago’s leading real estate private equity firms, identified in published reports as Oak Street Capital, to sell for $200 million the approximately 30-acre Tribune Publishing Center site on which Bally’s Chicago will be built. The gaming giant entered into a 99-year ground lease with the investor to lease back the land.
As specified construction milestones are completed, the investor will fund up to an additional $300 million for Bally’s Chicago’s development through the ground lease structure, Bally’s said.
Bobby Lavan, CFO of Bally’s, said, “With this new real estate partnership, Bally’s has ample liquidity on hand to fund Bally’s Chicago without needing to access the capital markets.”
Bally’s has the option to repurchase the casino site’s land from the investor at a fixed capitalization rate during years four through eight of the lease term.
- ◦Sale/Acquisition
- ◦Development
