Vici Properties is expanding its massive portfolio of entertainment-focused real estate with a 38-property sale-leaseback deal with bowling center operator Bowlero Corp.

The New York-based REIT purchased the properties for $432.9M, according to a press release about the sale. The lease agreements will have a total annual rent of $31.6M with an initial term of 25 years, plus six five-year renewal options.

The portfolio spans 17 states, including 11 that will be new states the REIT is expanding to.

John Payne, chief operating officer of Vici Properties, said in a statement that this represents the REIT's entrance into the family entertainment sector, a $15B-plus industry.

“At VICI, we seek to invest in non-commodity real estate centered on experiences benefiting from long-term secular tailwinds, and Bowlero’s track record of growth and innovation in a resilient experiential sector aligns well with our investment framework,” he said. “We are proud to be a key real estate and capital partner for the Bowlero team.”

Vici has burst onto the Las Vegas real estate scene over the last several years, acquiring massive properties including Harrah’s Las Vegas Hotel and Casino for $1.1B in 2016, the real estate of Caesars Palace in 2018 and The Venetian in a $6.25B partnership with Apollo Global Management in 2021. In December 2022, Vici became the sole owner of Mandalay Bay and MGM Grand after Blackstone Real Estate Income Trust sold its $700M stake in the two casinos.

In recent years, the REIT has ventured into new endeavors like a partnership with developer Cabot for its first golf course, Cabot Citrus Farms in Brooksville, Florida.

The deal with Bowlero comes as the bowling operator has made its own efforts to expand across the country. The company is the largest bowling operator in the country and has 350 centers in North America.

Bowlero expanded operations in May when it reached a deal to acquire the Lucky Strike chain for $90M. That deal closed in September and added 14 locations for the bowling alley operator.