Hard Rock Rockford land sold to GLPI for $100m
Through this partnership, the property investment firm has acquired the land of the Hard Rock Rockford establishment from its operating firm, 815 Entertainment. The contract involves a leaseback deal, through which the operator will be paying the investment firm about 8 million dollars per year for the upcoming 99 years with a 2% annual escalation rate that will go into effect one year after the start of the partnership.
Furthermore, the contract between the two firms also involves a commitment from GLPI to provide up to 150 million dollars in funding for the property’s development, the terms for which include an interest rate of 10% and a maximum outstanding period of 6 years including one yearly extension. This loan will be prepayable by the operator with no penalties following the opening of the yet-under-construction establishment, which is estimated to open its doors to its first patrons in about a year in September of 2024.
The operator’s Rockford establishment will feature a floor area of more than 16 thousand square meters with over 5500 square meters being dedicated to the property’s gambling hall. The casino will feature 1250 slot terminals, a sportsbook, and 50 table games at launch, and is estimated to cost a total of about 358 million dollars.