IStar Inc. paid $57 million for nine bowling centers from bowling entertainment venue operator Bowlero Corp.
The transaction is part of a $112 million deal with Bowlero, whereby the diversified real estate investment trust committed to buy as much as $55 million in additional bowling locations over the next several years.
The REIT will add the newly acquired facilities to its current master net leases with Bowlero. Lease I and Lease II, maturities of which were extended by 15 years to 2047, comprise 157 bowling and entertainment centers, including the centers that are yet to be purchased.
IStar said it will revalue the properties for financial reporting purposes, for an expected second-quarter gain ranging from $145 million to $165 million, subject to final valuations.