In a recent interview with the Las Vegas Sun, Tyler Henritze, head of strategic investments for the real estate division of mega-investment firm Blackstone Inc., indicated that the firm was still very much interested in the Las Vegas market.
In total, Blackstone manages a Las Vegas portfolio of about 100 properties, valued at nearly $25 billion collectively. The firm has also purchased real estate assets from the Bellagio, MGM Grand and Mandalay Bay in the last three years.
According to Henritze, the city has “grown up,” and offers a much more “diversified entertainment economy” than it has in previous years. Henritze also noted that Blackstone’s Las Vegas holdings are extremely diversified, including resort assets, millions of square feet of facilities and commercial properties.
“It’s no longer just about gambling in Las Vegas, it’s about business and sports and entertainment,” Henritze told the Sun. “As a result, if I look across our real estate business, we’ve made big investments across the board.”
When asked about the possibility of revenue decline as more jurisdictions around the country debate gambling legalization and expansion, Henritze was confident that the city has taken positive steps to diversify its economy. He noted the success of the Raiders and Golden Knights franchises, as well as the Formula One racing event recently unveiled for the Strip.
Henritze was also asked about the recent trend of real estate firms purchasing casinos and then leasing them back to gaming companies–in his words, this arrangement offers a sort of freedom, in the sense that by “bifurcating the operations of a casino from the real estate, you allow capital to invest in one or the other, as people see appropriate.”
With regards to future investments in the city, the firm expects to continue to look for more opportunities in the gaming and logistics industries. According to Henritze, Blackstone’s plans for the Las Vegas market moving forward look “much of the same.”
