Realty Income commits $800 million to City Center in new Strip investment

2025-12-02

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City Center, the Las Vegas development that houses the Aria casino and Vdara hotel, is set to receive an $800 million capital injection from Realty Income, signaling continued institutional confidence in the Strip’s major resort assets.

The investment adds another large real estate partnership to the company’s growing presence in Southern Nevada. The transaction is targeted to close on December 9, pending final conditions.

Realty Income confirmed the move in a statement, outlining a preferred equity structure that provides the firm with a steady return while leaving full ownership of the complex with Blackstone Real Estate. The company projects an initial yield of 7.4 percent, with room for increases after the fifth year of the agreement.

The arrangement does not alter day-to-day operations at Aria or Vdara. MGM Resorts International will continue to manage both properties under a triple net lease, a structure in which MGM pays operating costs and annual rent escalations while running the facilities.

Realty Income President and CEO Sumit Roy said the investment fits the company’s long-term strategy and underscores the enduring strength of the Las Vegas resort market. “This investment highlights the value of iconic Las Vegas properties,” Roy said. “It provides attractive returns while supporting a world-class destination on the Strip.”

The deal also extends the relationship between Blackstone and Realty Income, which partnered last year on a joint venture involving the Bellagio. Blackstone Real Estate’s co-head of Americas acquisitions, Jacob Werner, said the latest transaction both secures investor returns and maintains Blackstone’s position within City Center.

“We are pleased to reach this agreement and grow our partnership with Realty Income,” he said. “This preferred equity investment is a terrific outcome for our investors as it returns significant capital while preserving our ownership in a world-class resort at the heart of the Las Vegas Strip.”