Encore Boston Harbor Casino | 1 Broadway | Everett

We actually had from Google Maps the "popular times" graphs for the Casino, and, (from memory), since it does not have a 9am start nor a 6pm anything it was very "contra-rush"

- Arrivals weren't significant until after 10am and were smooth all day...ergo not contributing to morning rush (probably also more a "busload of retirees" kind of vehicular traffic at 10am)d
- Seemed to have a small lunch peak, on Friday (Mohegan Sun, below, doesn't have this, maybe because it is too far for "just lunch")
- Built slowly from 10am to 6pm, then a step up at 7pm to 10pm then tapered off...ergo not contributing much to the evening rush

- Weekend traffic was also a long slow "breathe in" and a consistent "breathe out"

In sum, while it generates many trips, there's no reason to believe it creates much congestion.

(This seems to be missing now, but you can still see a similar pattern for Mohegan Sun, which still has an "all venue business" number)
Mohegan Sun's Friday Graph:
Mohegan-Sun.PNG


Compare this to, say 200 Berkeley St (office tower), which clearly pulls most people in for a sharp AM inbound rush and a less-sharp PM departure rush...which is to say, your classic Rush Hour pattern:

200-Berkeley.PNG
 
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Wynn Resorts Sells Boston Property to Realty Income for $1.7 Billion

news.google.com

Wynn Resorts Sells Boston Property to Realty Income for $1.7 Billion

Wynn Resorts Ltd. agreed to sell the land and buildings associated with its Encore Boston Harbor resort for $1.7 billion to Realty Income Co. Wynn will continue to manage the property, paying the San Diego-based real estate investment trust rent that begins at $100 million annually. The Las...
news.google.com news.google.com
 
Selling the property for 1.7 billion but still staying and paying $100M rent doesn't sound so smart.
 
jklo said:
Selling the property for 1.7 billion but still staying and paying $100M rent doesn't sound so smart.
Click to expand...

" The casino industry has increasingly turned to REITs for financing as a way to reduce debt and free up capital for expansion. "

They have enough cash at hand to finance other expansions and pay rent. It's smart.
 
www.bostonglobe.com

Wynn Resorts cashes in on Everett casino in $1.7 billion deal - The Boston Globe

The transaction is expected to close at the end of the year and will likely be one of the biggest commercial real estate deals in Massachusetts in 2022.
www.bostonglobe.com www.bostonglobe.com

"....On Tuesday, Wynn announced a $1.7 billion sale to Realty Income, a large real estate investment trust, and plans to use the proceeds, in part, to help fund its development plans across Broadway from the casino. But no, Wynn isn’t going anywhere: The Las Vegas-based casino operator will lease the Encore property from Realty Income, starting at $100 million a year, escalating slightly each year, essentially to keep pace with inflation......"
 
vanshnookenraggen said:
" The casino industry has increasingly turned to REITs for financing as a way to reduce debt and free up capital for expansion. "

They have enough cash at hand to finance other expansions and pay rent. It's smart.
Click to expand...

smart…but they get $1.7B and pay rent but invested ~$1B more than that in the property. Am I missing something ?
 
617 said:
smart…but they get $1.7B and pay rent but invested ~$1B more than that in the property. Am I missing something ?
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Yeah, that jumped out at me, too. There is more to this than what made it in to the Globe article. If the property is now worth so much less than the cost of improvements, there is something really wrong going on at the casino.
 
vanshnookenraggen said:
" The casino industry has increasingly turned to REITs for financing as a way to reduce debt and free up capital for expansion. "

They have enough cash at hand to finance other expansions and pay rent. It's smart.
Click to expand...

Agree. Some of y'all really slackin' keeping up on your corporate finance, and it shows 😂
 
stefal said:
Confused as to what's going on here - there are presentations from February 10 over the proposed use of the Encore Venue and Parking Garage (and an additional diagram confirming two future hotels and retail along Broadway), which was reportedly put on pause as they re-assessed best uses for the site almost exactly a month ago.
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As I understand it they pulled the proposals because the proposals too closely aligned the new developments to the casino. So the Casino Commission basically said, "The way this is presented now, this development falls into our jurisdiction." So Wynn was like, "Thanks for the heads up. We'll pull these proposals and resubmit later as more of an independent development unaffiliated with the casino."
 
I really dislike the location as a hub for entertainment. It has awful transit access, and it’s not likely to improve in the foreseeable future.
 
HenryAlan said:
Yeah, that jumped out at me, too. There is more to this than what made it in to the Globe article. If the property is now worth so much less than the cost of improvements, there is something really wrong going on at the casino.
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They only sold the land... not the business. The sale price of the real estate does not reflect the value of the resort business, just the real estate.

My parents did something similar several years ago. My dad owned and operated a flea market in South Florida. I don't remember the exact numbers, but lets simplify it and say at the time of sale he sold it for $10 million: $5 million the buyer paid of that sale was for the real estate, and the other $5 million was for the flea market business.

So because Wynn Resorts maintains ownership of the Encore Boston Harbor business, there is a whole lot more worth to the resort than just the real estate value assigned to the business. For example, the resort announced a quarterly operating profit of $68 million this week. If you extrapolate out $68M per quarter and are targeting a 5% rate of return on a valuation of the business, then Encore Boston Harbor (the business) is more likely worth $5.4 billion. So coupled with the real estate, the property + business is probably collectively worth $7 billion+. Not too shabby!
 
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RandomWalk said:
I really dislike the location as a hub for entertainment. It has awful transit access, and it’s not likely to improve in the foreseeable future.
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They will be building a pedestrian bridge from the Assembly T Orange Line stop to the casino…so that will make it quite convenient for transit access.
 
dshoost88 said:
They only sold the land... not the business. The sale price of the real estate does not reflect the value of the resort, just the real estate.
Click to expand...
Okay, that makes mores sense, then. The print version of the article I saw this morning did not make a distinction between land and facilities, and in fact rather strongly implied that the hotel and casino buildings were part of the sale, that Wynn would only be managing them. Perhaps they fixed that later in the day. If it is indeed only the land that sold, then the deal makes a lot more sense.

As for the theory about brand equity, I don't think they created that with the construction, it already existed or was enhanced by operations. But certainly the facilities would have significant value associated with the cost of building them, which according to the article I read, was quite a bit more than the sale this week. So one way or the other, they aren't selling everything, and the Globe listed apples and oranges for numbers.
 
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