On Tuesday, Gaming and Leisure Properties Inc. (GLPI) announced a partnership with Caesars Entertainment and the Dry Creek Rancheria Band of Pomo Indians, agreeing to offer $225 million in financing for the upcoming Caesars Republic Sonoma County resort.
The construction is currently underway at the River Rock Casino site in Healdsburg, California, with an anticipated opening in summer 2027. The resort will boast over 100 rooms, four dining establishments, 1,000 slot machines, and 28 table games.
Initially, GLPI will serve as a lender for the project, providing a delayed draw term loan of $180 million at a fixed interest rate of 12.50%, along with a term loan B of $45 million, yielding a current maturity rate of 13.95%,” stated the real estate investment trust (REIT).
The financing’s blended interest rate stands at 12.79%, featuring a cap rate of 9.75%. Furthermore, GLPI and Dry Creek Rancheria have signed a 45-year lease agreement valued at a minimum of $112.5 million.
This Pennsylvania-based REIT, which owns 68 casinos across 20 states in the U.S., is broadening its involvement in tribal gaming. Last year, GLPI provided a $110 million loan to the Ione Band of Miwok Indians for the construction of the Acorn Ridge Casino near Sacramento, marking a significant milestone in external financing within Indian Country.
“GLPI continues to explore additional opportunities within tribal gaming, creating partnerships that leverage our distinctive funding frameworks, akin to the value our regional gaming operator tenants experience from our collaborations,” the REIT mentioned in its second-quarter earnings report.
Deutsche Bank analyst Carlo Santarelli referred to the REIT’s tribal partnerships as a “pipeline catalyst,” highlighting their potential to expand development opportunities and enhance shareholder value.
For Caesars, this agreement represents an expansion of its tribal casino management reach. Currently, the company oversees several tribal properties under the Harrah’s brand and is launching the Caesars Republic brand, which includes plans to rebrand Harveys Lake Tahoe.