Revel Casino Hotel was sold to developer Glenn Straub's company Tuesday for $82 million, marking the end of a sale process fraught with dissension and delay, with shifting alliances and spoiled offers.
The property, which for now he's calling "Polo North," will reopen by summer, he says.
But it's not clear what it will house.
Straub's ideas for Atlantic City have ranged from the pedestrian (a casino-hotel, a waterpark) to the exotic (a genius-filled thinktank, an international equestrian hub).
His company has not completed an application for casino licensing, a spokeswoman for state casino regulators said Tuesday.
Last week Straub announced an agreement to buy the former Showboat casino, which neighbors Revel, from Stockton University for $26 million — part of a purported $500 million, eight-part plan to transform the city under something dubbed the Phoenix Project.
ATLANTIC CITY — Atlantic City’s gambling industry overcame the closing of four casinos last …
On Tuesday he said facilities at Showboat can be used to power Revel and free him from the $160 million power plant that so far has been Revel’s sole source of energy and one of its greatest millstones.
Straub is at loggerheads with plant operator ACR Energy Partners and says he will jettison Revel’s 20-year energy contract with the firm.
“We broke their back,” Straub said of ACR Tuesday, adding that the company’s proposal to power Revel was “$300 million too much.”
Revel's corporate parent had been trying to unload the resort complex since at least November. A restructuring adviser to the company called it "the most marketed casino asset in the U.S."
Revel’s corporate offices, looking out over a roiling Atlantic Ocean and a Boardwalk swaddled in fog, were abandoned Tuesday. The failed resort’s outgoing executives left nearly nothing behind. One of the few items that remained was a shimmering glass statuette from J.P. Morgan heralding a disastrous $1.154 billion loan made to Revel.
Big banks got beat bad on Revel, which cost $2.4 billion to build and closed in early September. It was open a bit more than two years and never turned a profit.
Wells Fargo has provided about $63 million, and counting, to fund Revel's bankruptcy, plus about $75 million in the lead-up to Revel's June Chapter 11 filing. Wells will likely get the large majority of the sale proceeds from Revel, though the bank will still take a large loss on its investment.
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