There are a few ways to be involved in the gaming industry and being a landlord for casinos is among them. One real estate investment firm has just increased its holdings in that niche through expanding upon an existing relationship.
Oak Street Real Estate Capital has purchased the property that the Palace and Chips Casino in Lakewood, Washington, occupies. It’s the second such deal between the two companies. The sale gives Maverick capital that it needs to possibly continue its expansion.
Maverick Gaming sells Palace and Chips
According to Kate Snyder of The Registry, Maverick cleared $27 million by selling the property that houses Palace and Chips to Oak Street. Snyder reports that Maverick purchased the property seven years ago for $4.5 million.
Despite the sale, visitors to the casino probably won’t notice any change. While Maverick no longer owns the building, it will continue to lease the property from Oak Street. In 2022, the same two companies completed a similar transaction involving Maverick’s Macau Casino in Lakewood.
Oak Street isn’t the only firm filling out its investments with gaming properties. For example, VICI Properties has almost 50 such properties in its portfolio. That firm recently joined the S&P 500 as well. For Maverick, the new capital seems to be fueling other investments.
Maverick builds its market share
In December, Maverick bought out the operator of four card rooms in Washington. With the purchase, Maverick became the operator of more than half of the cardrooms in the state. While Maverick has gaming facilities in other states, it has focused on Washington lately.
Maverick is also the plaintiff in a lawsuit regarding legal sports betting in Washington. While a federal court dismissed that lawsuit in February, Maverick has appealed. The complaint seeks for governmental action against the agreement between Washington and tribal gaming authorities.
These real estate transactions will lend toward continuing that litigation and perhaps acquiring more competitors. They have also allowed Oak Street to diversify its assets.