The former Atlantic City casino known as the Revel has reportedly been purchased by a group based in Colorado.
In Atlantic City, New Jersey, the year 2014 was not a very good one for the local gambling industry. It was in 2014 that four gaming venues were shut down, one of which was the Revel Casino. The Revel had only been open for a short time and the property owners were forced to shutter due to poor performance. The casino has sat empty ever-since but a recent revitalization in the area may have now seen the property scooped up by a company based in the state of Colorado.
Property Management Firm Shows Interest
The Press of Atlantic City is reporting that a property management firm based in Colorado has provided a sale agreement to the County Clerk’s Office in order to show they are interested in purchasing the former Revel property. The casino is located along the Boardwalk of Atlantic City, an area that has seen recent revitalization efforts.
The filing was dated the 31st of August and indicates that the property will be purchased for an undisclosed amount. Glenn Straub is the current owner of the property who has reportedly agreed to the deal. The buyer is being represented by Integrated Properties, Inc. and based on the documents filed, the company was founded by Bruce Deifik. Once the sale is complete, Deifik will be able to take ownership of the former Revel.
In the past, it was believed that a group known as Keating & Associates LLC would be the new owners of the venue but the deal worth $225 million apparently fell through.
It was in 2012 that the Revel Casino opened its doors, after costing over $2 billion to complete. The casino was open for a very short time before closing its doors in 2014. The casino filed for bankruptcy a second time before being forced to close. By 2015, the former casino was purchased by Glenn Straub for $82 million, much less than the cost of construction. Straub planned on creating the venue into a popular and profitable place.
However, Straub was unsuccessful in his endeavors, missing deadlines to open including one this past June. Straub had rebranded the Revel as TEN and wanted to offer the property as another place along the Boardwalk for guests to enjoy, but roadblock after roadblock emerged. A conflict between Straub and the utility supplier for the property was a big issue surrounding the venue reopening. Eventually, Straub agreed to pay ACR Energy Partners LLC $45 million in order to end the issue.
Straub had plans to open the Revvel as TEN and offer casino gaming but would be leasing the game floor to a third party who would be the operator of the venue. This caused yet another hiccup as Straub did not believe he needed licensing but casino regulators did. Straub refused to apply for licensing and stated that since he would not be operating the gaming, he didn’t need one.
While Straub has had difficulty getting the venue back on track, perhaps a new owner will not. It seems stubbornness may have gotten in the way of Straub opening the venue and if the new owner is more open to requirements needed, the property could actually be successful.
Hard Rock International is currently at work changing the former Trump Taj Mahal to a Hard Rock property and the Revel has plenty of opportunity to join in the revitalization efforts, offering even more to the residents and visitors of Atlantic City.