The horse racing, casino, and leisure company, Churchill Downs Incorporated, has divested a substantial portion of land adjacent to its Calder Casino site in the Sunshine State. The purchaser was Link Logistics, a prominent entity in the logistics real estate sector, and an affiliate of investment behemoth Blackstone. Finalized at a value of approximately $2.5 million per acre for the 115.7-acre parcel, the transaction totaled $291 million.
Churchill Downs originally acquired the 170 acres in Miami Gardens with aspirations of constructing a casino; nevertheless, owing to legal obstacles and community resistance, the corporation ultimately opted to relinquish those ambitions. In lieu of development, Churchill Downs will retain ownership of 54 acres, encompassing the existing Calder Casino. The organization intends to allocate the proceeds from the sale towards funding its nearly $2.5 billion purchase of Peninsula Pacific Gaming, an agreement that will considerably broaden Churchill Downs’ presence within the gaming and entertainment sector. A facet of this approach entails investments in fresh properties, some potentially identified via a 1031 exchange, a tax strategy enabling the deferral of capital gains taxes on real estate sales.
The horse racing company, Churchill Downs, is considering selling a 15-20 acre plot of land in Miami Gardens. Their goal is to entice new retail establishments to the vicinity, situated along Northwest 27th Avenue.
This development follows a robust beginning to 2022 for Churchill Downs, as the organization recovers well from the COVID-19 pandemic. Indeed, they recently declared record-breaking net revenue of $364 million for the initial quarter.
Churchill Downs is also making substantial investments in its primary racetrack. In April, they greenlit a considerable $2 billion renovation endeavor for the location.