BREIT will lease the property to a subsidiary of MGM for an initial annual rent of $245m, while MGM will hold a 5% equity interest in the venture.
The agreement is expected to finalise in Q4 2019, subject to certain closing conditions.
This week, MGM also entered into an agreement to sell Circus Circus Las Vegas to an affiliate of Treasure Island owner Phil Ruffin, for $825m.
Once both deals are finalised, it will demonstrate a shift from MGM's property ownership business model.
Jim Murren, MGM Chairman and CEO, said: "We will use the proceeds from this transaction, together with the proceeds from the pending sale of Circus Circus Las Vegas, to build a fortress balance sheet and return capital to shareholders.
"These transactions enhance the company’s strategic and operational flexibility and reinforce its commitment to targeted new growth opportunities, including securing and investing in one of the integrated resort licenses in Japan and becoming an industry leader in sports betting in the US."
