Latham & Watkins Advises Realty Income in $800 Million Preferred Equity Investment in CityCenter
Realty Income Corporation (Realty Income, NYSE), known as The Monthly Dividend Company®, has entered into a significant partnership with Blackstone Real Estate. The companies have announced a definitive agreement under which Realty Income will make a $800 million perpetual preferred equity investment in the real estate of CityCenter. This prestigious property includes the ARIA Resort & Casino and Vdara Hotel & Spa, both of which are owned by funds affiliated with Blackstone Real Estate.
Blackstone Real Estate will retain full common equity ownership of the property, which will continue to be operated by MGM Resorts International. This investment represents Realty Income’s second collaboration with Blackstone Real Estate, following the successful Bellagio Las Vegas joint venture completed in 2023. Latham & Watkins LLP, a leading law firm, provided comprehensive legal representation for Realty Income in this transaction.
The legal team from Latham & Watkins LLP was led by Orange County partner Darren Guttenberg, San Diego partner Ann Buckingham, and Chicago partner Rachel Bates. Additional support was provided by New York partner Betsy Jaffe, San Diego counsel Achraf Farraj, and associate Daniel Eyal. The firm also offered expert advice on tax matters, with Los Angeles partner Ana O’Brien and counsel William Kessler contributing their insights. On debt matters, the team was guided by Los Angeles partner Ken Askin.
This strategic investment underscores Realty Income’s commitment to diversifying its portfolio and expanding its presence in high-value real estate markets. The ARIA Resort & Casino and Vdara Hotel & Spa are iconic properties in Las Vegas, known for their luxury and exceptional service. By investing in these assets, Realty Income aims to capitalize on the strong tourism and hospitality sectors in the region.
Realty Income is a leading REIT (Real Estate Investment Trust) that invests in and owns a diverse portfolio of commercial real estate properties. The company is renowned for its monthly dividend payments, which have been a hallmark of its business model for over 50 years. This latest investment aligns with Realty Income’s strategy of acquiring stable, high-quality properties that generate consistent cash flows.
Blackstone Real Estate, a global leader in real estate investment, has a proven track record of successful projects and partnerships. The firm’s expertise in managing and optimizing real estate assets has made it a preferred partner for many leading companies. The continued operation of CityCenter by MGM Resorts International, a global hospitality and entertainment company, ensures that the properties will maintain their high standards of service and guest satisfaction.
Latham & Watkins LLP, with its extensive experience in corporate and real estate transactions, played a crucial role in facilitating this deal. The firm’s multidisciplinary approach, combining expertise in corporate law, real estate, tax, and debt matters, ensured that all aspects of the transaction were thoroughly addressed. This collaboration between Realty Income, Blackstone Real Estate, and Latham & Watkins LLP exemplifies the synergy that can be achieved when industry leaders come together to create value and drive growth.
In summary, the $800 million preferred equity investment in CityCenter is a significant milestone for Realty Income. It not only strengthens the company’s portfolio but also reinforces its strategic partnerships with leading real estate firms. With the continued operation of the properties by MGM Resorts International, the investment is poised to deliver long-term benefits for all stakeholders involved.
