Tropicana Casino For Sale For $384 Million
The Tropicana in Vegas is for sale, and owner Gaming & Leisure Properties has finally settled on a selling price. The official asking price: $384 million.
While talk and speculation about the fate of the historical Las Vegas gaming and entertainment venue have been doing the rounds since March last year, there finally seems to be movement and clarity about the possible future of the Tropicana. March 2020 was when Gaming & Leisure Properties first acquired the famous landmark establishment from Penn National Gaming – with Penn remaining in control of operations, while the new owners took control of the land on which the venue stands.
But now, the land as well as the operating rights are for sale. And the asking price is one far below what the Tropicana may actually be worth.
All About The ARV
According to an estimate compiled by MyHouseDeals.com, a buyer able to make certain enhancements to the property could be looking at scoring up to $116 million in equity – this being post-refurbishments that could see the after repair value (ARV) skyrocket all the way to a crazy $500 million.
A reasonable question would be why the new owners have not first spruced up the property before putting it up for sale. But those familiar with the real estate investment trust’s typical modus operandi say they’re not surprised by the fact that the property is essentially about to be pawned off “as is”. Gaming & Leisure Prop. has traditionally been interested much more in the development of regional casinos than in Las Vegas-style destination markets, say those in the know.
And since the company is the largest regional casino ownership profile in the United States, it makes perfect sense that it would want to hold the horses on its Sin City footprint.
No Buyer Yet, But
While Gaming & Leisure Prop. have not yet identified any buyers interested in acquiring the Tropicana, executives last year revealed that there was plenty of interest in the property.
But with Caesars rumoured to be likely to soon announce its own intentions of offloading Planet Hollywood, there could very well soon be a great deal of competition in what may very well become predominantly a market full of sellers wanting to divest. And since gaming has been ransacked by a unique and depressing situation, those sellers may have to navigate a buyer’s market.
A likely party of interest is rumoured to be Bally’s Corp. Not only does it have a decidedly acquisitive history, but it also already has an existing relationship with Gaming & Leisure Properties, from whom it leases Indiana’s Tropicana Evansville as well as Dover Downs Hotel and Casino in Delaware.