A new deal for the Atlantic City Club Casino falls through, with plans for a new water park lost in the shuffle.
Atlantic City cannot seem to catch a break these days. For years now, the once thriving gambling town has suffered great losses from casinos shutting down to almost losing their governmental rights to the state. Atlantic City has been struggling for several years and is seemingly barely able to stay afloat. However, despite all the negatives, investors still seem to be interested in the gambling city. Hard Rock International has plans to open a new venue in the state and other investors are trying to get properties up and running, with such examples as the TEN resort.
The Atlantic Club Casino Hotel is one venue that was showing promise, set to become a new destination along the Boardwalk and feature a new water park resort. However, these plans have now fell through as the casino deal is no longer on the table.
R&R Development Group, a real estate development company, announced in March they had plans to purchase the Atlantic City Casino Hotel and invest $135 million to turn the property into a destination, be it a non-gambling one. The company had plans to create a family-friendly venue with entertainment, including a water park. The owner of the firm, Ronald Young, had spoken with media at the time, stating that he was hoping to have the hotel rooms of the property up and running by this fall, all 300 guest rooms.
However, it seems the deal has now fallen apart as R&R Development Group was unable to secure the funds needed to seal the deal. Young explained that a potential Chinese investor had changed their mind on investing which took $35 million from the project financing. Young told media with the announcement of the failed deal that he felt it was a mistake to believe that he could secure so much financing within a two month time frame. However, the company does remain committed to purchasing the property and redeveloping in the area.
Previous Efforts Have Failed as Well
Some might say Atlantic City is cursed as doomed to fail with all the negative incidents that have taken place. This is not the first time the Atlantic Club had a potential deal in the works. In 2016, Endeavor Property Group of Pennsylvania was close to purchasing the property but the transaction did not go through.
TJM Properties is the current owner of the Atlantic Club, whose Acquisition Director, Dale Schooley, stated that they were surprised to find that the deal was not going to go through as of yet. Schooley did point out that other groups are interested in the property and so they are not concerned about a sale taking shape in the future.
A Little History
The Atlantic Club Casino Resort was originally known as the Golden Nugget and was a popular resort along the Boardwalk. The venue was open for 34 years before it shut down in early 2014, being one of four casinos to close in Atlantic City that year. The economic situation of the area forced the shutdown and the casino has yet to reopen in any manner. However, signs of economic improvement are showing in Atlantic City and with groups interested in the property, it would not be unheard of to see a new deal on the table soon. Perhaps R&R Development will be able to find a new investor to get their project off the ground or another developer may jump in at the chance to get their hands on a former casino property on the boardwalk.