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Realty Income Invests $800 Million in Las Vegas CityCenter Assets

Published: December 02, 2025 | Category: Real Estate
Realty Income Invests $800 Million in Las Vegas CityCenter Assets

Realty Income, a leading real estate investment trust (REIT), has announced a substantial $800 million perpetual preferred equity investment in the CityCenter assets in Las Vegas. The investment targets two iconic properties: ARIA Resort & Casino and Vdara Hotel & Spa, both of which are owned by funds affiliated with Blackstone Real Estate.

Blackstone Real Estate will retain 100% of the common equity ownership of the property, ensuring continued operational control by MGM Resorts International. This strategic move marks Realty Income's second significant investment with Blackstone Real Estate, following a $950 million investment in Bellagio Las Vegas earlier in 2023.

Realty Income will also retain a right of first offer on any future sale of the common equity interests in the real estate by Blackstone Real Estate. This provision underscores the strong partnership and mutual trust between the two entities.

Sumit Roy, CEO of Realty Income, expressed his enthusiasm about the deal, stating, 'We are pleased to build on our strategic relationship with Blackstone Real Estate to invest in one of the Las Vegas Strip's iconic properties.' The investment is not only a testament to the robust partnership but also a reflection of the ongoing confidence in the Las Vegas market.

In light of this significant investment, Realty Income has raised its 2025 investment volume outlook to over $6.0 billion. This increase highlights the company's aggressive growth strategy and its commitment to expanding its portfolio with high-quality, income-generating assets.

ARIA Resort & Casino and Vdara Hotel & Spa are prime locations on the Las Vegas Strip, featuring approximately 5,500 rooms and 500,000 square feet of convention space. These properties are renowned for their luxury and are managed and maintained to the highest standards by MGM Resorts International.

The investment is expected to yield an initial return of 7.4%, with increases beginning in the fifth year. Upon the redemption of the preferred equity amount, the deal will deliver an 8.3% return to Realty Income, further solidifying the financial appeal of this strategic move.

The transaction is scheduled to close on December 9, 2023. This deal is a significant milestone for both Realty Income and Blackstone Real Estate, and it is expected to enhance the value and stability of the Las Vegas real estate market.

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Frequently Asked Questions

1. What is the amount of Realty Income's investment in CityCenter assets?
Realty Income is making an $800 million perpetual preferred equity investment in the CityCenter assets, which include ARIA Resort & Casino and Vdara Hotel & Spa.
2. Who will retain the common equity ownership of the property?
Blackstone Real Estate will retain 100% of the common equity ownership of the property, while MGM Resorts International will continue to operate the assets.
3. What is the initial return on the investment, and when will increases begin?
The investment will yield an initial return of 7.4%, with increases starting in the fifth year.
4. What is the expected return upon redemption of the preferred equity amount?
Upon the redemption of the preferred equity amount, the deal will deliver an 8.3% return to Realty Income.
5. When is the transaction expected to close?
The transaction is expected to close on December 9, 2023.