GLPI acquires Sunland Park Racetrack & Casino property in $183.75 million deal

Gaming and Leisure Properties has entered into an agreement to purchase the real estate assets of Sunland Park Racetrack & Casino in New Mexico for $183.75 million, marking its latest strategic move to expand in secondary U.S. gaming markets.

The Pennsylvania-based real estate investment trust (REIT) announced the deal on Wednesday, stating that the acquisition comes with an initial capitalization rate of 8.2% and includes a 2% annual rent escalator. GLPI noted the transaction would be “immediately accretive” to its adjusted funds from operations (AFFO), a key financial measure used by REIT investors to assess dividend-sustaining capacity.

Sunland Park, located near the Texas border in southern New Mexico, first opened its doors in 1959. Today, the property spans roughly 157 acres and features 738 slot machines, 12 electronic gaming tables, and a 25,000-square-foot gaming area.

The facility also includes a one-mile Thoroughbred and Quarter Horse racetrack, a 733-seat stadium, a 600-person ballroom, simulcast wagering space, and a third-party-operated hotel with 78 rooms. According to GLPI, the site includes underutilized land with “significant expansion and performance uplift opportunities.”

The initial lease term is set at 25 years, with options for two 10-year renewals. This acquisition is the fourth collaboration between GLPI and Strategic Gaming Management, the operator of Sunland Park. It follows the REIT’s purchase in May 2024 of the property assets for three Strategic-operated venues: Baldini’s Casino in Sparks, Nevada; Silverado Franklin Hotel & Gaming Complex; and Deadwood Mountain Grand in South Dakota.

Sunland Park now joins Zia Park Casino Hotel & Racetrack in Hobbs as GLPI’s second property in New Mexico.

“Sunland Park is located in the Borderplex Region consisting of El Paso, Texas, and Las Cruces, NM, which has a large adult population (~2M) and rising median household income,” Truist Securities analyst Barry Jonas wrote in a research note on Wednesday. “The property also faces limited competition with the closest competitor ~20+ miles away (Speaking Rock) and no proposed commercial casinos within ~550 miles.”

The acquisition aligns with GLPI’s ongoing strategy of targeting gaming properties in underserved or less saturated markets, as opposed to high-profile destinations like Las Vegas. That approach was opted for in recent deals such as the September financing agreement with Caesars Entertainment and the Dry Creek Rancheria Band of Pomo Indians for the Caesars Republic project in Sonoma County, California.

That transaction saw GLPI commit $225 million in funding. Later the same month, the company finalized a $735 million sale-leaseback deal with Bally’s for the Twin River Lincoln Casino Resort in Rhode Island. With the Sunland Park acquisition, GLPI continues to build on its core model of investing in regional gaming assets that offer stable, long-term rental income.