Churchill Downs Incorporated (CDI) has sold a substantial portion of property it possessed near its fully-owned Calder Casino in the Sunshine State. The transaction, completed with Link Logistics (a real estate powerhouse under Blackstone’s umbrella), yielded a hefty $291 million. To illustrate the magnitude, the 115.7-acre parcel fetched approximately $2.5 million for each acre.
Prior to the sale, Churchill Downs maintained a significant landholding in Miami Gardens – totaling 170 acres. Currently, their presence in the region is confined to the 54 acres housing the Calder Casino. The agreement, initially unveiled in late 2021, concluded seamlessly, adhering to the original terms.
Churchill Downs aims to utilize the sale earnings to propel its ambitious purchase of Peninsula Pacific Gaming. This multi-billion dollar endeavor, declared in February, will witness Churchill Downs acquiring the “lion’s share” of Peninsula Pacific’s holdings, encompassing real estate.
This calculated maneuver considerably broadens Churchill Downs’ footprint in the gaming and leisure sector, cementing its standing as a national frontrunner, notably within the sphere of historic equine racing.
Beyond the Peninsula Pacific acquisition, Churchill Downs intends to allocate the Florida land sale gains towards other property ventures that conform to Section 1031 of the U.S. Internal Revenue Code, permitting the postponement of capital gains levies in specific real estate dealings.
The famed horse racing venue, Churchill Downs, is contemplating the sale of a 15-20 acre parcel adjacent to Northwest 27th Avenue in Miami Gardens. This highly desirable property is intended for commercial development, taking advantage of the region’s expansion.
Following the difficulties presented by the global health crisis, the organization is witnessing a revival in the current year. They announced unprecedented gross earnings of $364 million in the initial quarter.
To further solidify their dedication to expansion, Churchill Downs greenlit a $2 billion modernization initiative for their primary racing facility in April. This significant financial commitment indicates their belief in the future of in-person racing and leisure activities.
