The horse racing, digital betting, and amusement enterprise, Churchill Downs Incorporated, has sold a significant portion of land neighboring its Calder Casino estate in the Sunshine State. Link Logistics, a prominent figure in the industrial property sector and an arm of investment behemoth Blackstone, purchased the 115.7-acre parcel for a substantial $291 million. That’s a considerable sum equating to approximately $2.5 million for each acre!
This transaction considerably reduces Churchill Downs’ presence in Miami Gardens. Initially possessing a vast 170 acres, they’ve now relinquished all but the 54 acres housing the Calder Casino itself. The agreement, first revealed in November 2021, concluded seamlessly, with both sides adhering to the initial stipulations.
What does Churchill Downs intend to do with this sudden injection of funds? A portion will fund their purchase of Peninsula Pacific Gaming, a transaction that will see them acquire nearly all of the company’s holdings for almost $2.5 billion. This calculated maneuver, declared in February, is poised to substantially expand Churchill Downs’ footprint in the gaming and entertainment realm, cementing their status as a frontrunner in the historical horse racing domain.
However, that’s not all. Churchill Downs intends to allocate the remaining earnings from the Florida land transaction into other property ventures. This astute financial strategy aligns with Section 1031 of the Internal Revenue Code, enabling them to postpone capital gains levies.
The horse racing company, Churchill Downs, is contemplating the sale of 15-20 acres of property it possesses in Miami Gardens, situated along NW 27th Avenue. The organization is pondering the utilization of this land for a fresh commercial development venture.
This development follows a robust financial period for Churchill Downs, which has experienced a revival in 2022 following the challenges of the global health crisis. The company recently declared unprecedented net earnings of $364 million for the initial quarter of the year.
In addition, Churchill Downs is making substantial investments in its primary racetrack, having recently allocated $2 billion towards modernization efforts in April.