Wynn Resorts to sell Encore property for $1.7B

  Wynn Resorts, the parent company of Encore Boston Harbor, recently announced that the prestigious 1 Broadway address will be sold to Realty Income in San Diego for $1.7 billion.

  “Encore Boston Harbor is the premier gaming resort on the East Coast and the valuation we achieved in this sale reflects the property’s quality,” said Craig Billings, CEO of Wynn Resorts. “Equally important, the bespoke structure and terms of the lease allow us to maintain a great deal of operating flexibility across economic cycles. The proceeds of the transaction also provide us with liquidity for several of our upcoming development projects and the potential to retire other debt.”

  Under the terms of the agreement, Wynn will enter into a triple-net lease with Realty Income for Encore. Therefore, Wynn will continue to oversee the operation of the five-star resort and casino. The gaming giant will also continue to pay the real estate taxes as well as the insurance and maintenance costs. On the surface, patrons will not notice any difference. There will also be no changes to the Community Host Agreement between the City of Everett and the resort casino.

  The transaction is expected to be completed before the end of the year.

  In addition, the 13 acres across the street from Encore will remain in the hands of Wynn Resorts Development. Therefore, the proposed East of Broadway project will continue to move forward as planned. During his recent presentation to the Massachusetts Gaming Commission, Christopher Gordon, president of Wynn Resorts Development, said the first phase would include a 999-seat events center, a pedestrian bridge and a parking garage with spaces for nearly 3,000 vehicles. The subsequent phases of the project would feature up to three hotels, seven restaurants and 20,000 square feet of retail space.

  Once the Encore deal is closed, Wynn will have the option of selling the East of Broadway parcel to Realty Income for up to $20 million.