Tropicana Las Vegas becomes the first strip venue up for sale, according to reports just shortly after its acquisition. The American casino firm, Gaming and Leisure Properties In. is currently leaning towards that direction for the historic venue.
According to online casino sources, Penn National Gaming Inc sold the 1,470-room property to Gaming and Leisure Properties Inc in late April. It is also prior leasing it back as part of the $307.5 million deal. The arrangement was finalized even it was over a month into the shutdown related to the coronavirus pandemic.
Deliberation on the First Strip Venue Up for Sale
Since the finalization of the sale, it seems that the once tourist-chocked city transforms into a virtual ghost town. Now, there are deliberations to put up the first strip venue to be up for sale. The 63-year old property is purposely due to emerging out of its own coronavirus-related shutdown from September 1.
Gaming and Leisure Properties Inc is the real estate investment trust (REIT) spinoff from Penn National Gaming in 2013. It has yet to settle on a firm asking price for the 35-acre Tropicana Las Vegas. The 63-year old property, despite its new owner formulation, plans to cite its betting odds. It is to find another renter or negotiate an outright sale.
Value Depreciation
According to sources of online slot machines, the Las Vegas property is currently worth at least its value from five years. It is the same value when it has been traded, which is $360 million. Penn National Gaming Inc also can expect a portion of any net profit, should a sale be agreed in two years.
There are likely several casino operators interested in purchasing the Tropicana Las Vegas. It is according to reports from financial services. It is with the final asking price to be between $400 million to $700 million. And that when it feels rock bottom, it is when the buyers are coming out. And at least have conversations with the holders of some of the assets.
