Dan Gilbert is unloading one of his big Detroit property.
In a move that was expected, Jack Entertainment has sold Greektown-Casino Hotel to Penn National and VICI Properties for $1 billion. According to a release, “Penn National will acquire the operating assets of Greektown for approximately $300.0 million, and VICI Properties will acquire the land and real estate assets of Greektown, for approximately $700.0 million.”
The deal requires regulatory approval.
“We purchased Greektown Casino-Hotel as a part of our overall economic development strategy in Detroit,” said Matt Cullen, Chief Executive Officer of JACK Entertainment. “After investing hundreds of millions of dollars of capital into redesigning and remodeling the property, as well as working with our outstanding team members and their unions to dramatically improve operations and customer service levels, Greektown Casino-Hotel is positioned for further future success. We are confident that Penn National is the ideal steward to take Greektown to the next level of growth. We chose to sell to Penn National, in large part, due to its strong culture and the quality of its leadership and team.”
Rumors of a casino sale started earlier this, which led to speculation about what could be next for Dan Gilbert. It could very well free up money for larger projects. But the most popular theory was that he wanted to buy a Major League Baseball team—MLB team owners can’t own gaming properties. In a very unscientific poll conducted by Curbed, over half of our readers thought he should buy the Detroit Tigers.
Gilbert tells John Gallagher at the Free Press that there’s no deal in the works to buy the Tigers. He’s not commenting on the sale of his other casino properties.
Since bringing Quicken Loans into downtown Detroit in 2010, Dan Gilbert has acquired over 100 properties downtown. Some of the larger developments run by his real estate team—Bedrock—include the Hudson’s site, the Monroe Blocks—which should break ground soon, and the City Modern development in Brush Park. His team made a deal earlier this year to build a new jail complex and in return, they’ll get the land at fail jail site.
“Our purchase of Greektown Casino-Hotel five and a half years ago, soon after its bankruptcy, allowed us to work with the great team at the property to create a winning culture and a vibrant business,” said Dan Gilbert, Chairman of JACK Entertainment and Founder and Chairman of Rock Ventures. “The sale to Penn National and VICI Properties will allow that strong trajectory to continue and provide additional capital to continue our strategic investments in our Detroit real estate and business initiatives.”