It appears that Glenn Straub will be buying the Revel Casino in Atlantic City after all. A week after a federal bankruptcy judge agreed to terminate the sale of the casino to Straub, Revel has reportedly agreed to new terms with the Florida real estate tycoon.
According to the Press of Atlantic City, the new deal will see Straub purchase the casino for just $82 million. As the deal was heading towards termination last week, Revel claimed that there were several buyers waiting to potentially buy the property. Straub called their bluff and let the judge terminate the deal. A week later, there has been no mention of additional buyers and Straub will get the property for an even deeper discount.
Property to Close by March 31 But Money Already Deposited
The purchase price of $82 million is the third, and apparently final, attempt to sell the casino. Originally, the property went to auction and Brookfield Asset Management was declared the winner with a bid of $110 million. However, they backed out of the deal after problems renegotiating debt with the site’s power provider.
After the Brookfield deal fell through, Straub was declared he backup bidder at $95.4 million. Straub had originally stated an intention to fight for a final price of $87 million that would reflect his original stalking horse bid of $90 million minus the $3 million breakup fee that was negotiated into the bidding contract.
Straub relented on the $87 million price tag but then refused to close on the property once tenants started fighting for the right to remain in the building post-sale. He wanted a “free and clear” title and former tenants weren’t willing to give up over $16 million in investments.
The newest purchase price comes a week after Revel claims that there were multiple buyers lined up to purchase the property. This now appears to be a massive bluff. The latest sale price represents just 3.5 percent of the $2.4 billion originally spent to build the property.
NJ.com reports that terms of the deal include a deposit for the full purchase price by Straub. That money is currently being held in escrow, but it’s an encouraging sign that the sale really will happen this time. All that’s left now is the paperwork and final approval by the bankruptcy court. Closing is scheduled to happen by March 31.
What Happens Next
What will become of the Revel casino is now anyone’s guess thanks to multiple visions presented by Straub in the past. According to a statement released by Straub on Tuesday, “Polo North is working diligently with its team to finalize an operational plan for the property to be successful, not just ‘business as normal,’ as we have done in the past.
“These plans include major construction of a $50 million dollar plus expansion of the exterior area of the building and a $50 million dollar plus relocation of items such as a more accessible hotel lobby, a large medical/health spa and facility.
In the past, Straub’s plans have included opening a water park and a University for geniuses. He has also stated that casino gambling will be a part of the casino, but only a small part of the overall property.
If the sale moves forward as planned, Straub plans to move quickly. He claims that a large portion of the property could be open as early as this summer. This would be a huge boost to the summer season for Atlantic City. Four casinos closed in 2014 and a fifth just narrowly avoided closure.
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