Wynn Resorts To Sell Encore Boston Harbor Assets For $1.7 Bln

(RTTNews) - Wynn Resorts (WYNN) announced on Tuesday that it had entered into a definitive agreement to sell all of the land and real estate assets of Encore Boston Harbor to Realty Income (O) for a sum of $1.70 billion in cash, thus representing a 5.9 percent cap rate. Wynn Resorts will continue operating the property with its usual high standards.

Wynn Resorts said that simultaneous with the closing of the transaction, the company will enter into a triple-net lease agreement for Encore Boston Harbor with Realty Income. The lease will have an initial total annual rent of $100.0 million and an initial term of 30 years, with one thirty-year tenant renewal option.

Rent under the lease will rise at 1.75% for the first ten years of the lease and the greater of 1.75% and the CPI increase during the prior year (capped at 2.50%) over the remainder of the lease term.

The transaction is expected to be completed during the fourth quarter of 2022.