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Real Estate Transactions (Tables)
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Summary Of Loan Originations
The following table summarizes our 2024 real estate debt origination activity:
(In thousands)
Investment NameMaximum Principal AmountInvestment TypeCollateral
Great Wolf Mezzanine Loan (1)
$250,000 Mezzanine
Portfolio of nine Great Wolf Lodge resorts across the United States
Chelsea Piers One Madison Loan10,000 Senior Secured LoanCertain equipment of the fitness club at the One Madison building in New York, NY
Homefield Margaritaville Loan (2)
105,000 Senior Secured LoanMargaritaville Resort in Kansas City, Kansas, under development
Total$365,000 
____________________
(1) In connection with the Great Wolf Mezzanine Loan, the $79.5 million mezzanine loan for Great Wolf Lodge Maryland was repaid in full.
(2) Simultaneous with entering into the loan agreement, we entered into a call right agreement that provides us with a call option on (i) the Margaritaville Resort, (ii) the new Homefield Kansas City youth sports training facility, (iii) the new Homefield baseball center, and (iv) the existing Homefield youth sports complex in Olathe, Kansas. We also received a right of first refusal to acquire the real estate of any future Homefield property, should Homefield elect to monetize such assets in a sale-leaseback transaction. If the call option is exercised, all of the properties, including the Margaritaville Resort, will be subject to a single long-term triple-net master lease with us.
The following table summarizes our 2023 real estate debt investment activity:
($ in thousands)
Investment NameMaximum Investment AmountInvestment TypeCollateral
Kalahari Virginia Loan$212,200 Mezzanine LoanIndoor waterpark resort in Thornburg, VA under development
Canyon Ranch Preferred Equity Investment150,000 Preferred Equity InvestmentEquity interests in controlling entity of Canyon Ranch
Canyon Ranch Lenox and Tucson Loan140,135 Senior Secured LoanCanyon Ranch Tucson and Canyon Ranch Lenox
Cabot Saint Lucia Loan100,000 Senior Secured LoanLuxury golf resort in Saint Lucia, Virgin Islands
Hard Rock Ottawa Notes85,000 Senior Secured NoteHard Rock Ottawa Hotel & Casino
Cabot Highlands Loan (1)
10,938 Senior Secured LoanLuxury golf resort in the Scottish Highlands
Total$698,273 
____________________
(1) Amount represents USD equivalent to £9.0 million based on the exchange rate at the time of closing.
Summary of Asset Acquisitions
The following table summarizes our acquisition and leasing activity (each as defined in the column titled “Transaction”) for the year ended December 31, 2023:
($ in millions)
TransactionDateGuarantor Lease AgreementPurchase PriceInitial Annual RentNumber of Properties
Chelsea Piers Sale-Leaseback Transaction (1) (2) (3)
December 18, 2023Chelsea PiersChelsea Piers Lease$342.9 $24.0 1
Lucky Strike Sale-Leaseback Transaction (2) (3)
October 19, 2023Lucky StrikeLucky Strike Master Lease432.9 31.6 38
Century Canadian Portfolio Sale-Leaseback Transaction (2) (3) (4)
September 6, 2023CenturyCentury Master Lease162.5 
(5)
12.7 
(6)
4
Rocky Gap Casino Acquisition (2) (4)
July 5, 2023CenturyCentury Master Lease203.9 15.5 1
Gold Strike Severance LeaseFebruary 15, 2023CNBCNE Gold Strike Lease— 40.0 
(7)
1
MGM Grand/Mandalay Bay JV Interest Acquisition (2)
January 9, 2023MGMMGM Grand/Mandalay Bay Lease2,758.9 
(8)
151.6 
(9)
2
PURE Canadian Gaming Sale-Leaseback Transaction (2) (3)
January 6, 2023
PURE Canadian Gaming (10)
PURE Master Lease200.8 
(11)
16.1 
(12)
4
Total$4,101.9 $291.5 
____________________
(1) Investment represents acquisition of the existing leasehold interest associated with Chelsea Piers from Chelsea Piers L.P. in a sale-leaseback transaction. The $71.5 million outstanding Chelsea Piers loan was repaid in full and terminated in connection with the closing of the acquisition.
(2) We determined that the transaction should be accounted for as an asset acquisition under ASC 805-50 and further, that the respective lease meets the definition of a sales-type lease.
(3) Since we purchased and leased the asset back to the seller under a sale leaseback transaction, control is not considered to have transferred to us under GAAP. Accordingly, the transaction is accounted for as Investments in leases – financing receivables on our Balance Sheets.
(4) We determined that the acquired components of the respective master lease meet the definition of a separate contract under ASC 842. In accordance with this guidance, we are required to separately assess the lease classification apart from the other assets in the respective master lease.
(5) Amount represents USD equivalent to C$221.7 million investment based on the exchange rate at the time of closing.
(6) Amount represents USD equivalent to C$17.3 million rent based on the exchange rate at the time of closing.
(7) Simultaneous with the entrance into the CNE Gold Strike Lease, we entered into an amendment to the MGM Master Lease in order to account for MGM’s divestiture of the operations of Gold Strike and to reduce the annual base rent by $40.0 million.
(8) Amount includes the assumption of BREIT’s $1,497.0 million pro rata share of an aggregate $3.0 billion of property-level debt, which matures in 2032 and bears interest at a fixed rate of 3.558% per annum through March 2030.
(9) Amount represents our pro-rata share of the MGM Grand/Mandalay Bay Lease which had total annual rent of $303.8 million upon closing.
(10) On December 10, 2024, we consented to the assignment of the PURE Master Lease to an affiliate of IGP, in connection with the acquisition of the operating assets of PURE Canadian Gaming Corp. by a subsidiary of IGP.
(11) Amount represents USD equivalent to C$271.9 million investment based on the exchange rate at the time of closing.
(12) Amount represents USD equivalent to C$21.8 million rent based on the exchange rate at the time of closing.
The following is a summary of our net assets acquired upon consolidation of the MGM Grand/Mandalay Bay JV:
(In thousands)Amount
Carrying value of prior 50.1% interest acquired in connection with the MGP Transactions
$1,458,782 
Consideration paid for MGM Grand/Mandalay Bay JV Interest Acquisition
1,261,882 
Transaction costs14,630 
Total net assets acquired$2,735,294 
Under ASC 805-50, we allocated the net assets acquired by major categories of assets acquired and liabilities assumed using relative fair value. The following is a summary of the allocated relative fair values of the assets acquired and liabilities assumed in the consolidation of the MGM Grand/Mandalay Bay JV:
(In thousands)Amount
Investments in leases – sales-type$5,494,351 
Cash and cash equivalents (1)
9,607 
Debt, net (2)
(2,747,877)
Accrued expenses and deferred revenue (1)
(20,787)
Total net assets acquired$2,735,294 
____________________
(1) Amount represents their current carrying value, which is equal to fair value
(2) Amount represents the fair value of the $3.0 billion principal amount of CMBS debt as of January 9, 2023, which was estimated as a $252.1 million discount to principal value. The fair value of the debt was estimated by modeling the contractual cash flows and discounting them back to the present value using an estimated market yield. Additionally, we considered current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value measurement are considered Level 3 of the fair value hierarchy.