Blackstone Scores $800M Las Vegas Investment From Realty Income To Boost CityCenter Real Estate

• Blackstone keeps full ownership of the ARIA and Vdara real estate, with MGM remaining as operator.
• Realty Income’s preferred stake carries a 7.4% initial return and capped escalators starting in year five.
• The agreement includes redemption premiums and an IRR make-whole provision for Realty Income.

Blackstone Real Estate said on Monday that Realty Income will invest $800 million in the real estate behind CityCenter Las Vegas, the home of the ARIA Resort & Casino and Vdara Hotel & Spa. Blackstone’s funds will continue to own the properties, which remain operated by MGM Resorts International.

Blackstone Retains Full Common Equity Ownership

Under the agreement, Blackstone will retain 100% of the common equity in the property. Realty Income’s preferred investment carries an initial unlevered return of 7.4%, with capped annual escalators beginning in year five. Early redemption would require Blackstone to pay Realty Income a premium of 3% if repaid within the first year, or 2% if repaid between the first and fourth year. Realty Income is also entitled to a make-whole payment to ensure an 8.325% unlevered internal rate of return (IRR) upon redemption.

Jacob Werner, Co-Head of Americas Acquisitions for Blackstone Real Estate, said “this preferred equity investment is a terrific outcome for our investors as it returns significant capital while preserving our ownership in a world-class resort at the heart of the Las Vegas Strip.” 

CityCenter Supported By Long-Term Triple Net Lease

CityCenter’s real estate is subject to an existing triple net lease with nearly 26 years remaining on the initial term and three 10-year extension options. Blackstone said the in-place rent remains well covered by current cash flows.

Located at the center of the Las Vegas Strip, the ARIA and Vdara properties include gaming, lodging, luxury retail and dining, about 5,500 rooms, and 500,000 square feet of convention space.

Realty Income Raises 2025 Investment Outlook

Realty Income said the transaction marks its second partnership with Blackstone Real Estate after the 2023 Bellagio joint venture and prompted the company to raise its 2025 investment volume guidance to over $6 billion. The firm noted that the investment will be funded through cash, expected free cash flow and equity, of which Realty Income had $417 million of outstanding cash as of the end of the third quarter and $1.3 billion of unsettled forward equity as of Monday.

Stocktwits Users Keep A ‘Neutral’ Stance

On Stocktwits, retail sentiment for Blackstone and Realty Income was ‘neutral’ amid ‘low’ message volume.

While Blackstone’s stock has declined 12.5% so far in 2025, Realty Income’s stock has risen 14% over the same period. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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