Final week, Pink Rock Resorts (NASDAQ: RRR) closed on the sale of 21.3 acres of land subsequent to its Durango on line casino lodge venture in Southwest Las Vegas.
A rendering of Pink Rock’s Durango venture. The corporate bought 21.3 acres subsequent door for $23.9 million. (Picture: Eater Vegas)
The gaming firm bought the land to actual property developer Ovation Improvement Corp. for $23.9 million. It’s anticipated Ovation will construct an condominium complicated on the land, probably offering the brand new on line casino with a gentle stream of close by prospects.
Pink Rock, the mum or dad firm of Station casinos, topped off the $750 million Durango venture in October. Durango On line casino & Resort is slated to open within the fall of 2023. The on line casino will characteristic 73,000 sq. toes of gaming house, a sportsbook, 2,000 gaming machines, and 40 desk video games.
Whereas Las Vegas is residence to the biggest focus of casinos within the US — dozens of which cater to locals — Pink Rock believes Durango will probably be successful as a result of the realm during which the venue is being constructed presently has a dearth of casinos. It’s additionally one of many fastest-growing elements of the Las Vegas Valley.
Pink Rock Beforehand Deliberate to Half with Land
Pink Rock’s determination to promote the 21.3 acres subsequent to Durango was well-forecast, although the corporate hasn’t revealed a use for the proceeds.
On an earnings convention name final yr, executives from the corporate mentioned such a transaction would probably happen, and so they had been pretty correct within the estimate for proceeds, forecasting $23 million on the time. Pink Rock is a frequent purchaser and vendor of property, and when it’s a vendor, it at all times engages in transactions with corporations that aren’t within the gaming business.
The operator has historical past with Ovation. Final yr, the gaming firm bought 5 acres behind Sundown Station to the property developer. The true property agency is planning to place senior housing there.
Along with its namesake venue in Summerlin and the Inexperienced Valley Ranch in Henderson, Pink Rock operates a number of gaming properties underneath the Station model all through the Las Vegas space. The corporate additionally runs 10 Wildfire casinos, together with seven in Henderson, in line with its web site.
Pink Rock Main Las Vegas Landowner
Pink Rock is among the largest landowners in Las Vegas and has a large portfolio of presently unused property.
In July, the operator introduced the acquisition of 126 acres of land south of the Strip for $172 million — boosting its unused land holdings within the Las Vegas Valley to just about 430 acres.
Along with Durango, the operator has different Las Vegas-area tasks within the works, together with a brand new Wildfire on line casino downtown and an overhaul of the presently closed Wild Wild West.
Analysts consider Pink Rock may double its Las Vegas footprint by 2030 whereas driving a 70% enhance in earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA).
