This record-breaking profit on the Cosmopolitan of Las Vegas proves Sin City continues to be Blackstone’s playground for deal making.
Investment group Blackstone notched a massive windfall on a casino resort in the heart of the Las Vegas Strip.
Blackstone inked a deal to sell its Cosmopolitan of Las Vegas resort for $5.65 billion, a nearly 3,000-room property the company bought in 2014 for $1.7 billion. The company has since spent $500 million in upgrading the facility.
The buyer consortium includes Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust. MGM Resorts International, which Blackstone has several operating agreements with in Las Vegas, is expected to sign an operations agreement for the property.
“This transaction underscores Blackstone’s ability to acquire and transform large, complex assets,” said Tyler Henritze, head of acquisitions for the Americas for Blackstone Real Estate. “As owners of The Cosmopolitan, we invested strategic capital and brought our expertise and experience in the lodging space to create the most dynamic destination on the Las Vegas Strip.”
The deal is expected to close early next year. A separate Blackstone letter to investors obtained by the Wall Street Journal indicate the transaction would be the largest profit the firm ever achieved in a single-asset real estate sale.|0|https://skift.com/2021/09/27/blackstone-claims-most-profitable-asset-sale-with-5-6-billion-las-vegas-deal/|1|https://skift.com/wp-content/uploads/2021/09/1280px-The_Cosmopolitan_of_Las_Vegas-e1632746075356.jpg|2|skift.com|E|