Caesars Entertainment and VICI Properties have reached an agreement to sell Harrah's Reno Hotel and Casino to CAI Investments for $50 million, the companies announced on Wednesday.
The property will eventually be redeveloped into a non-gaming hotel and mixed-use development.
As part of the deal, Caesars will continue to operate Harrah's Reno under a short-term lease through the first half of 2020. The proceeds of the transaction will be split, with VICI receiving 75 percent and Caesars receiving the remaining 25 percent.
Harrah's Reno is the first-ever Harrah's casino, originally opening as a bingo parlor in 1937.
"We recognize the long legacy of Harrah's in Reno, where the brand began 82 years ago and our role in the community. We are pleased the buyer is committed to the community and supports the redevelopment of this wonderful asset," said Tony Rodio, CEO of Caesars Entertainment, in a statement. "We have worked closely with the buyer to provide a reasonable closure plan that allows our great staff in Reno ample time to secure their next jobs, including priority consideration for relevant openings at our other properties in Nevada, including Lake Tahoe and Las Vegas."
"The sale of Harrah's Reno demonstrates our ability to continuously work constructively with our tenants to improve our individual businesses," added John Payne, President and COO of VICI Properties. "This disposition will allow VICI to optimize the quality of our real estate portfolio and redeploy the proceeds toward other attractive growth opportunities while maintaining the existing financial terms of the Non-CPLV Master Lease with Caesars."
The transaction is subject to the closing of Eldorado Resorts' acquisition of Caesars, regulatory approvals and other customary closing conditions.
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