Wynn Resorts announces sale of Encore Boston Harbor; will continue to

On Feb 16, 2022

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Wynn Resorts, the company that helped build the massive Encore Boston Harbor casino and hotel in Everett announced Tuesday it has entered into an agreement to sell the land and real estate assets of the property to San Diego based Realty Income.Wynn Resorts said it will continue to operate the property. The company said the deal is worth $1.7 billion. As part of the deal, Wynn Resorts said it’ll enter into what is called a triple-net lease agreement for Encore Boston Harbor with Realty Income. Wynn Resorts said the lease will have an initial total annual rent of $100 million and an initial term of 30 years, with one thirty-year tenant renewal option. A triple-net lease agreement on a property means the tenant, which in this case is Wynn Resorts, promises to pay all the expenses of the property, including real estate taxes, building insurance and maintenance. These expenses are in addition to the cost of rent and utilities. In standard commercial lease agreements, some or all of these payments are typically the responsibility of the landlord.Wynn Resorts said it will retain its 13-acre developable land assemblage on the east side of Broadway in Everett, on a portion of which, the company plans to construct an expansion that is expected to include additional covered parking along with other non-gaming amenities. “The proceeds of the transaction… provides us with liquidity for several of our upcoming development projects and the potential to retire other debt,” Craig Billings, CEO of Wynn Resorts, said in a news release. The company has secured an option to sell the related land and real estate assets of such expansion to Realty Income for up to $20 million of additional rent, at a specified cap rate, for up to six years following the closing of the transaction.The transaction is expected to be completed during the fourth quarter of 2022, Wynn Resorts said.

EVERETT, Mass. —

Wynn Resorts said it will continue to operate the property. The company said the deal is worth $1.7 billion.

As part of the deal, Wynn Resorts said it’ll enter into what is called a triple-net lease agreement for Encore Boston Harbor with Realty Income. Wynn Resorts said the lease will have an initial total annual rent of $100 million and an initial term of 30 years, with one thirty-year tenant renewal option.

A triple-net lease agreement on a property means the tenant, which in this case is Wynn Resorts, promises to pay all the expenses of the property, including real estate taxes, building insurance and maintenance. These expenses are in addition to the cost of rent and utilities.

In standard commercial lease agreements, some or all of these payments are typically the responsibility of the…