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Nationwide Realty Investors could develop an arena district for the Pittsburgh Penguins -- if its partner wins at the slots.
Nationwide Realty announced the new arena deal Wednesday along with the National Hockey League team and a Mississippi gambling firm.The deal hinges on whether the gambling firm, Biloxi, Miss.-based Isle of Capri Casinos Inc., gets a license to operate slot machines in Pittsburgh.
Nationwide Realty would develop a mixed-use gambling and entertainment complex on 28 acres, including offices, retail and residential space, said Nationwide Realty spokeswoman Michelle Chippas. Nationwide Realty, an affiliate of Nationwide Mutual Insurance Co., took a similar tack when it developed Columbus' Arena District.
Nationwide Realty might also advise the Penguins as they build a new arena, Chippas said.
Nationwide Realty has financed projects developed in Pittsburgh by Columbus-based Continental Real Estate, Chippas said. The arena district would be the first Pittsburgh project the company has developed itself.
Isle of Capri (NASDAQ:ISLE) said Wednesday it has pledged $290 million in slots proceeds to finance an arena if it gets the gambling license. The development would replace the Penguin's current home, Mellon Arena, in dowtown Pittsburgh.
Isle of Capri owns 15 riverboat, dockside and land-based casinos. If awarded the gaming license, it said construction on a new arena would begin in early 2007.
"At the Isle, we believe that downtown Pittsburgh will become the best entertainment venue in the region," company president and CEO Tim Hinkley said in a statement.
The state of Pennsylvania allocated only one slot-machine license for Pittsburgh, and several other companies are expected to bid for the license. Some potential bidders include:
Forest City Enterprises of Cleveland.
MTR Gaming of Wheeling, W. Va., owner of Mountaineer Race Track and Gaming Resort and Columbus' Scioto Downs.
Charles Betters, a developer based in Beaver County, Pa.
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