GLPI Buys Sunland Park Racetrack and Casino in $183M Deal

Gaming and Leisure Properties (GLPI) has struck a $183.75 million agreement to acquire the real estate assets of Sunland Park Racetrack & Casino in New Mexico. The Pennsylvania-based real estate investment trust (REIT) said the transaction will be accretive to its adjusted funds from operations (AFFO) from day one, reinforcing its strategy of focusing on regional U.S. gaming markets.

Good to Know

• Purchase price is $183.75 million, with an initial 8.2% cap rate and 2% annual rent escalator.
• Lease structure runs 25 years with two 10-year renewal options.
• Sunland Park joins Zia Park as GLPI’s second casino-racetrack property in New Mexico.

First opened in 1959, Sunland Park sits on about 157 acres near the Texas border. The venue includes a one-mile Thoroughbred and Quarter Horse racetrack, a 733-seat grandstand, and a 600-person ballroom. Inside the gaming floor, guests find 738 slot machines, 12 electronic table games, and 25,000 square feet of space dedicated to gaming.

The property also has simulcast wagering, plus a third-party-operated 78-room hotel. GLPI said the site includes underused land, presenting “significant expansion and performance uplift opportunities” going forward.

Why Sunland Park Appeals to GLPI

The deal is the fourth collaboration between GLPI and Strategic Gaming Management, the operator of Sunland Park. The two parties previously worked together on acquisitions involving Baldini’s Casino in Nevada and two Deadwood, South Dakota properties.

Wall Street analysts highlighted the location’s strong fundamentals. Truist Securities analyst Barry Jonas noted:

“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. The property also faces limited competition with the closest competitor ~20+ miles away (Speaking Rock) and no proposed commercial casinos within ~550 miles.”

GLPI continues to favor acquisitions in less saturated gaming markets rather than Las Vegas-style destinations. Recent moves include a $225 million financing agreement with Caesars Entertainment and the Dry Creek Rancheria Band of Pomo Indians for the Caesars Republic project in California, as well as a $735 million sale-leaseback arrangement with Bally’s for the Twin River Lincoln Casino Resort in Rhode Island.

By adding Sunland Park to its portfolio, GLPI now has another stable income-generating property under long-term lease. The structure calls for an initial 25-year lease with two optional 10-year renewals, ensuring long visibility for both parties.

The post GLPI Buys Sunland Park Racetrack and Casino in $183M Deal appeared first on iGaming.org.