Churchill Downs Incorporated (CDI) has sold a significant portion of “extra land” adjacent to its fully-owned Calder Casino in the Sunshine State for a hefty $291 million. The purchaser? Link Logistics, the industrial property division of investment giant Blackstone. Envision storage facilities and distribution hubs, not another gambling establishment!

The 115.7-acre parcel garnered approximately $2.5 million for each acre. Prior to the transaction, Churchill Downs possessed a vast 170 acres in Miami Gardens but now retains only the 54 acres where Calder Casino resides. The agreement, initially revealed in November 2021, concluded seamlessly, adhering to the initial terms.

So, what is Churchill Downs planning with all those funds? They are on a bit of an acquisition spree themselves. Recall the billion-dollar purchase of Peninsula Pacific Gaming they declared earlier this year? This land transaction will assist in financing that, particularly by acquiring properties included in the deal.

For those unfamiliar with the equestrian world, Churchill Downs consented to obtain “essentially all” of Peninsula Pacific’s holdings for nearly $2.5 billion back in February. This action considerably broadens Churchill Downs’ reach, adding numerous new venues for their historical horse racing machines – imagine slot machines with outcomes determined by past races. They are essentially cementing their status as the leader in this expanding form of wagering.

Oh, and any remaining funds from the Florida land sale? Churchill Downs intends to allocate them to other real estate ventures that meet the criteria for those attractive tax advantages under Section 1031 of the Internal Revenue Code. A shrewd maneuver!

The iconic Churchill Downs is exploring the sale of property in Miami Gardens. Their aim is to secure a purchaser interested in transforming the land into a commercial hub. This decision follows a prosperous beginning to the year for the organization, marked by unprecedented financial gains in the initial quarter. Simultaneously, Churchill Downs is dedicating substantial resources to its primary racing venue, with a two-billion-dollar modernization initiative already in progress.