Gaming and Leisure Properties to Acquire Sunland Park Racetrack & Casino Real Estate Assets
Gaming and Leisure Properties Inc. announced that it intends to acquire the real estate assets of Sunland Park Racetrack & Casino. GLPI will acquire the real estate assets of Sunland Park for $183.75 million, at an initial 8.2% cap rate. With the inclusion into the Strategic Gaming Leases, annual rent on the lease will escalate at 2.0% per annum. Upon closing, the transaction is expected to be immediately accretive to AFFO per share.
The transaction represents an expansion of the relationship with Strategic Gaming Management LLC, an acquisitive operator of domestic casino assets. The acquisition will add a fourth asset to Strategic Gaming’s existing triple-net master lease agreement with GLPI.
With the closing of the transaction, which is expected to take place on October 15, 2025, Sunland Park will represent GLPI’s second property in New Mexico. Sunland Park, located in southern New Mexico, along the Texas border, serves the under penetrated El Paso-Las Cruces gaming market, a high population and income growth geography. Given state regulatory protections, Sunland Park is uniquely positioned to operate in a stable gaming environment.
Peter Carlino, GLPI’s Chairman and CEO, said: “Through our acquisition of Sunland Park, we are again diversifying our property portfolio, while again supporting the growth strategy of an existing tenant, as we deepen our relationship with Strategic Gaming, a dynamic and growing gaming operator. This accretive transaction further strengthens GLPI’s reputation as the gaming landlord of choice.”
Opened in 1959, Sunland Park sits on approximately 157 acres and offers 738 slots and 12 electronic gaming tables across a 25,000 square foot gaming floor. The property includes a 1-mile Thoroughbred and Quarter Horse racetrack with a 733-seat stadium. It hosts a 600-person ballroom, a simulcast wagering area, and a 78-room third-party hotel. The property also has underutilized acreage that provides significant expansion and performance uplift opportunities.
Truist Securities Inc. acted as financial advisor to Gaming and Leisure Properties. CBRE Investment Banking and Macquarie acted as financial advisors to Sunland Park.
