VICI Properties Inc. and Caesars Entertainment Corp. agreed to sell Harrah's Reno Hotel and Casino in Nevada to an affiliate of CAI Investments LLC for $50 million.

The casino real estate investment trust will receive 75% of the sale proceeds, while the casino operator will receive the remaining 25%. The yearly rent payments under the non-Caesars Palace Las Vegas master lease between the two companies will remain intact.

Caesars will end operations at the property during the second half of 2020, but will remain operator of the asset under a short-term lease with the buyer. Caesars will deliver the casino property to the buyer at the end of the lease term to be redeveloped into a non-gaming hotel and mixed-use development.

CAI Investments will work with Gryphon Private Wealth Management LLC as capital partner for the project, with GPWM Opportunity Zone Funds investing the required capital.

The acquisition is subject to the completion of the proposed merger between Eldorado Resorts Inc. and Caesars, regulatory approvals and other customary conditions.