San Diego, CA-based Realty Income Corporation has closed on its $1.7-billion sale-leaseback of the land and real estate assets of Encore Boston Harbor Resort and Casino in Everett, MA from Wynn Resorts, Limited.

The sale represents a 5.9% cap rate. The lease will have an initial total annual rent of $100 million and an initial term of 30 years, with one 30-year tenant renewal option.

Following the completion of the transaction, Wynn Resorts, Limited will continue to operate the gaming integrated resort operations of Encore Boston Harbor subject to a triple net lease with Realty Income.

Wynn will retain its 13-acre developable land assemblage on the east side of Broadway in Everett, on a portion of which the company plans to construct an expansion. 

The transaction represents Realty Income’s first acquisition in the gaming industry.

Realty Income is structured as a real estate investment trust, and its monthly dividends are supported by the cash flow from over 11,700 real estate properties owned under long-term net lease agreements with commercial clients.