City Center, the bustling Las Vegas locale featuring the Aria casino and Vdara hotel, is poised for an $800 million investment from Realty Income, reflecting ongoing institutional trust in the marquee resort properties of the Strip.

This substantial investment enhances the company’s expanding footprint in Southern Nevada’s real estate market. The deal is anticipated to conclude on December 9, subject to final conditions.

Realty Income announced the development via a statement, clarifying a preferred equity framework that guarantees the firm a reliable ROI, while Blackstone Real Estate retains full control of the complex. The firm expects an initial yield of 7.4 percent, with potential increases following the fifth year of the agreement.

This arrangement does not impact the daily operations at Aria or Vdara. MGM Resorts International will continue to oversee both properties through a triple net lease model, whereby MGM covers operational expenses and yearly rent increases while managing the assets.

Realty Income’s President and CEO, Sumit Roy, highlighted that this investment aligns with the company’s long-term strategy and emphasizes the robust resilience of the Las Vegas resort sector. “This investment underscores the enduring value of iconic Las Vegas properties,” Roy stated. “It offers appealing returns while bolstering a premier travel destination on the Strip.”

The agreement also reinforces the collaboration between Blackstone and Realty Income, which previously partnered on a joint venture at the Bellagio last year. Jacob Werner, co-head of Americas acquisitions at Blackstone Real Estate, noted that the latest venture ensures investor returns while supporting Blackstone’s stake in City Center.

“We are thrilled to finalize this agreement and enhance our partnership with Realty Income,” he mentioned. “This preferred equity investment is a fantastic outcome for our investors, as it reinvests substantial capital, while retaining our ownership in a leading resort at the core of the Las Vegas Strip.”