Blackstone Reaches $5.7B Agreement for Sale of The Cosmopolitan in Vegas
Blackstone Real Estate Partners VII L.P. said Monday it had agreed to sell The Cosmopolitan of Las Vegas for $5.65 billion. The sale price includes the $1.625 billion that MGM Resorts International will pay for the property’s operations.
Under the agreement, MGM Resorts will sign a long-term net lease with a partnership between Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust, Inc., which will acquire The Cosmopolitan’s real estate assets.
“Stonepeak, in partnership with the Cherng Family Trust, believes this transaction represents a fantastic opportunity to invest in the underlying real estate of The Cosmopolitan of Las Vegas, a solid asset with an irreplaceable location, durable cash flows and the potential for additional upside,” said Phill Solomond, head of real estate at Stonepeak.
Blackstone acquired the 3,032-key property for $1.7 billion in 2014 and made more than $500 million in capital improvements. Recent performance at the property has exceeded pre-COVID levels, according to Blackstone.
“The management team and employees at The Cosmopolitan, led by CEO Bill McBeath, flawlessly executed an ambitious business plan, including navigating a challenging period for the entire industry, to position the property for such a high level of success,” said Tyler Henritze, head of acquisitions Americas at Blackstone.
At MGM Resorts, CEO & president Bill Hornbuckle said, “The Cosmopolitan brand is recognized around the world for its unique customer base and high-quality product and experiences, making it an ideal fit with our portfolio and furthering our vision to be the world’s premier gaming entertainment company. We look forward to welcoming The Cosmopolitan’s guests and employees to the MGM Resorts family.”
The transaction is expected to close in early 2022, subject to regulatory approvals and other customary closing conditions.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).