ATLANTIC CITY — The Trump Taj Mahal, a property former owner and now President Donald J. Trump had built for more than $1.2 billion, was sold to a group of investors, including Hard Rock International, for $50 million, according to U.S. Securities and Exchange Commission filings.
The deal included more than 30 acres surrounding the property, according to the filing by former owner Carl Icahn. The property had been previously valued at $86 million, according to Icahn Enterprises’ 2016 financial report.
“Without knowing all the particulars on the surface, it seems fair,” said Robert Ambrose, an instructor of hospitality and gaming at Drexel University. “The new operators will be putting forward a tremendous amount of money subsequently raising the property value and its new marketing potential.”
Hard Rock International and investors Joe Jingoli and Jack Morris plan to spend nearly $400 million rebranding the property into the Hard Rock Hotel and Casino Atlantic City.
According to a sales agreement filed with the county, the property has a taxable value of more than $224 million, an assessment Icahn does not agree with.
Icahn’s companies recently appealed this year’s assessments for the former Trump Plaza and Trump Taj Mahal casinos. Icahn now has open appeals on both properties for tax years 2014 through 2017.
The new property will feature two separate arenas with seating totaling 7,000 and more than 2,400 slot machines. The property is expected to open in summer 2018.
The project is expected to create more than 1,000 construction jobs and 3,000 permanent jobs, according to Hard Rock. Since the transaction March 31, Hard Rock has hired 23 employees as it sets out to bring the once iconic Taj Mahal back to life under a new name and identity.
Icahn closed the property Oct. 10, following a labor dispute with Unite Here Local 54.