Caesars Entertainment has completed a deal to sell the Rio but will continue to operate the Las Vegas property for at least two years, the company announced recently. In a news release, Caesars said it was selling the Las Vegas property to a principal of Imperial Companies, a New York-based real estate firm, for $516.3 million.
Under terms of the agreement, Caesars will continue to operate the property while paying $45 million annually in rent under a lease that will run for at least two years. The deal, which had been rumored for months, is expected to close later this year, according to the release.
“This deal allows Caesars Entertainment to focus our resources on strengthening our attractive portfolio of recently renovated Strip properties,” Tony Rodio, CEO of Caesars Entertainment, said in a statement.
Next year’s World Series of Poker will take place at the Rio, according to the release, and hosting rights will remain with Caesars thereafter.
New York real estate developers Eric Birnbaum and Michael Fascitelli co-founded the Imperial Companies in 2014, according to its website, which says the company focuses on mixed-use, residential and hospitality assets across all major U.S. markets.