Gaming and Leisure Properties, Inc. (GLPI) said Tuesday (September 2) it will put up $225 million to help finance a new tribal casino and resort being developed by Caesars Entertainment and the Dry Creek Rancheria Band of Pomo Indians.
The project, called Caesars Republic Sonoma County, will be built on the site of the current River Rock Casino near Healdsburg, California. Construction kicked off in August and is expected to wrap up in the summer of 2027.
As part of the deal, GLPI will provide a $180 million loan at a fixed interest rate of 12.5% and a $45 million loan with a yield of nearly 14%, for a blended rate of about 12.8%. When the six-year loans mature, Dry Creek will lease the property to a GLPI affiliate for 45 years, paying at least $112.5 million. GLPI will then sublease the property back to a Dry Creek affiliate, with annual rent set at a 9.75% cap rate…