By Kevin Haas
Rock River Current
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ROCKFORD — A publicly traded real estate investment trust has acquired the land where the future Hard Rock Casino Rockford is being built.
Gaming & Leisure Properties Inc. (ticker symbol GLPI) announced that it purchased the property for $100 million from an affiliate of 815 Entertainment, the group that owns and operates the local Hard Rock. It also entered into a 99-year ground lease with 815 Entertainment with annual rent of $8 million and a fixed 2% annual increase.
“We believe this is an attractive ground lease transaction for our shareholders as the strong initial results at 815 Entertainment’s temporary facility demonstrate the strength of the location and the depth of the market,” Peter Carlino, GLPI’s chairman and CEO, said in a news release. “The Hard Rock brand is world renown and will support and solidify the new casino’s position as a tourist destination and entertainment venue.”
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Gaming & Leisure Properties is also committed to providing up to $150 million in development funding via a senior secured delayed draw term loan, subject to regulatory approval. That makes a combined $250 million available to 815 Entertainment to invest in the project.
“Hard Rock is the property manager and an equity investor in 815 Entertainment, bringing its world-class management team to the project,” Carlino said in a news release. “The overall transaction structure makes $250 million available to 815 Entertainment to invest in the project and reflects GLPI’s creativity in crafting a comprehensive construction financing solution.”
The future 180,000-square-foot Hard Rock Casino at Interstate 90 and East State Street is expected to open in August 2024, with a grand-opening celebration near Labor Day. The casino will have 1,300 electronic gaming devices, 44 live table game, six live poker tables, a sportsbook, Hard Rock Cafe, Council Oak Restaurant, Plum VIP Lounge, food hall and a 1,600 seat live music and entertainment venue.
“Hard Rock’s incredible financial strength and development trajectory is only made stronger with great partners like GLPI and 815 Entertainment,” Jon Lucas, chief operating officer for Hard Rock International, said in a news release. “We are really looking forward to opening another world-class entertainment property with Hard Rock Casino Rockford.”
Hard Rock has reaped nearly $103 million in gross gambling revenue through July since opening its interim casino at 610 N. Bell School Road in November 2021, according to Illinois Gaming Board data. It has also generated more than $6 million in local tax revenue from that gaming revenue. So far, the city of Rockford has earmarked $1.5 annually of that revenue for Rockford Promise, which provides free college tuition for qualified Rockford Public Schools graduates to attend Northern Illinois University.
Gaming & Leisure Properties formed in 2013 as the nation’s first gaming real estate investment trust. It has 59 properties in 18 states covering more than 6,000 acres of land, according to its website.
The company engages in acquiring, financing and owning property it leases to gaming operators in triple-net lease arrangements. The tenants, such as Hard Rock, are responsible for all facility maintenance, insurance, taxes and the business conducted at the properties.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas