- Details
- By Tribal Business News Staff
- Finance
The Dry Creek Rancheria Band of Pomo Indians secured a $225 million financing commitment from Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) to support construction of the Caesars Republic Sonoma County resort on the site of the current River Rock Casino.
The package includes a $180 million delayed draw term loan priced at 12.5% and a $45 million term loan B yielding 13.95%, for a blended rate of 12.79%, according to a statement from GLPI. The six-year loans will convert into a 45-year lease with annual rent based on a 9.75% cap rate, with a minimum value of $112.5 million. GLPI will lease the property from Dry Creek and sublease it back to the tribe.
The project broke ground in August and is scheduled to open in summer 2027. Plans call for a 100-room hotel, 1,000 slot machines, 28 table games, four restaurants, three bars, a luxury spa, pool, and fitness center overlooking Sonoma County’s Alexander Valley and Russian River. Located off Highway 101, the resort sits above the Alexander Valley Vineyards, providing views of both the vineyards and the Russian River. The existing River Rock Casino will remain in operation during construction.
The new resort will include a robust food and beverage lineup, featuring a steakhouse, an upscale café, an Asian concept, and a quick-service option, along with a fireside bar, sports bar, and dedicated wine bar with an outdoor deck.
GLPI worked with Citizens Bank, N.A. to structure the financing, while TFA Capital Partners advised GLPI. The transaction also extends GLPI’s partnership with Caesars Entertainment (NASDAQ: CZR), which will operate the facility.
Dry Creek Rancheria, a federally recognized Pomo tribe based in Geyserville, Calif., has approximately 1,300 members, more than 60 percent of whom live in Sonoma County. The tribe has operated River Rock Casino since 2002.
GLPI, based in Wyomissing, Pa., is a gaming real estate investment trust that acquires, finances, and owns properties leased to casino operators under triple-net agreements.
