Churchill Downs Incorporated Sells Most of Calder Casino Land for $291M

Posted on: November 23, 2021, 10:48h. 

Final up to date on: November 23, 2021, 10:48h.

Churchill Downs Integrated on Monday introduced it has reached an settlement to promote greater than 115 acres of land it owns on the Calder On line casino in Miami Gardens, Fla., for $291 million.

Calder Casino
An image of the Calder On line casino property in 2017, with the on line casino situated within the higher proper nook. On Monday, Calder Proprietor Churchill Downs Integrated introduced a deal to promote practically 116 acres of the property to a logistics actual property firm for $291 million. (Picture: Google Maps)

The Louisville-based gaming firm mentioned in an announcement that Hyperlink Logistics will buy the land. The corporate is the proprietor of logistics properties and was based two years in the past by Blackstone.

Churchill Downs officers anticipate the deal to shut someday within the first half of 2022. In current quarterly convention calls with inventory analysts, CEO Invoice Carstanjen talked about the corporate’s plans to promote extra land at what as soon as was Calder Race Course, a thoroughbred observe close to the Dade-Broward county line.

With the pending sale, Churchill Downs will nonetheless keep about 54 acres at Calder, or rather less than a 3rd of the present plot. Nonetheless, the corporate mentioned it might promote one other 15-to-20 acres that entrance on NW 27th Avenue. That space presently serves as parking area however might have potential retail makes use of.

Churchill Looking for Exchanges

As Carstanjen had mentioned to analysts beforehand, the corporate’s assertion Monday indicated it plans to make use of the proceeds from the land similar to both buy different land or make investments in property that might qualify as a 1031 change. Beneath the federal tax code, that might permit Churchill Downs to take the proceeds and keep away from paying capital good points taxes since, in essence, the corporate could be buying and selling one parcel or improvement for an additional.

The corporate eyes an analogous maneuver for the $197.2 million sale of Arlington Park in Illinois to the Chicago Bears. That deal for the 326-acre property, which was introduced practically two months in the past, just isn’t anticipated to shut for an additional yr or presumably not till 2023. The Bears have mentioned they plan to redevelop the racing grounds within the Chicago suburb into a brand new stadium for the NFL squad.

One such venture which will qualify for such an change is the $240 million on line casino venture in Terre Haute, Ind., Churchill Downs plans to construct. Final week, the Indiana Gaming Fee selected Churchill’s Queen of Terre Haute proposal over three different candidates for the Hoosier State’s 13th on line casino license.

Whereas the corporate is performing some work to prepare for building on the venture, there isn’t any timetable for groundbreaking. That’s due to an appeal from the Terre Haute business owner whose firm misplaced the license in June after the fee voted in opposition to renewal.

An administrative legislation choose scheduled a listening to within the case for subsequent week.

Churchill Downs has introduced different tasks that would qualify for the change. In its dwelling metropolis, the corporate has introduced multi-million-dollar growth tasks at its namesake observe and Derby Metropolis Gaming, a historic horse racing parlor. The corporate additionally plans to speculate $80 million in a downtown Louisville HHR parlor.

About Calder

For practically a half-century, Calder provided thoroughbred racing within the Miami space, together with the Hialeah Park and Gulfstream Park. Of these, solely Gulfstream nonetheless affords stay racing.

Churchill Downs purchased the observe in 1999, and thru 2014 the corporate held stay racing there. Nonetheless, beginning in 2015, Churchill Downs leased the observe to The Stronach Group, which used the observe for its fall meet. Churchill Downs tore down the grandstand and practically 1,500 stalls on the property.

Racing at Calder formally ended final yr after a five-year settlement concluded.

Churchill Downs opened the on line casino in 2010.

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