Two previous sales of Atlantic Club fell through because TJM wanted to close the sale in 60 days.
Advanced Consulting Inc., a New York-based rest estate company, is in talks to buy the Atlantic Club Casino Hotel — formerly the Golden Nugget AC and the Atlantic City Hilton. Advanced Consulting wants to turn the property into a non-gaming hotel and resort, according to AC Inc. chief executive Gem Lake.
The company is in talks to buy the property from TJM, the Florida-based real estate firm which currently owns the Atlantic Club. TJM was in negotiations with Stockton University to lease or buy the Atlantic Club, but those negotiations fell through in September.
The casino shut down in January 2014, when Caesars Entertainment and Tropicana Resorts combined to buy the property in a bankruptcy auction. Caesars and Tropicana split the company’s assets, with Caesars taking the Atlantic Club’s database and Tropicana collecting the gaming equipment and furniture.
Had Stockton University bought the property, it would have demolished the casino and hotel. The university, which was opening a $176 million campus in Atlantic City, wanted to use the property’s nine-level parking garage for student and staff parking.
R&R Develpment Deal: April 2017
A previous deal in April 2017 involving the Atlantic Club failed when Ventnor-based R&R Development negotiated a price, but failed to get the necessary financing to make the deal work. At the time, Ronald Young of R&R Development tried to acquire the property in a 60-day window, but had to get backing from a Chinese group for $35 million of the deal.
Eventually, the Chinese group pulled their $35 million in funding, which caused the deal to collapse. At the time, Ronald Young said, “It was my mistake to try to do a $135 million deal in 60 days. You can’t sell a house in that period.”
The New Jersey real estate developer said, “I’m still committed to the property and bringing this to the Atlantic Club. I feel that this is the right vision for Atlantic City,” but he never got the financing needed to make the purchase happen.”
Endeavor Property Group Deal: January 2016
In January 2016, Endeavor Property Group planned to buy the Atlantic Club and turn it into a water park. Endeavour Property would have developed the casino into a 100,000-square-foot indoor water park complete with a hotel, restaurants, and arcade.
TJM wanted Endeavor to close on the property in a short span of time, but the deal fell through when the Pennsylvania-based company asked for more time to secure financing. Much like the deal with R&R, TJM seemed to want to close within 60 days – a next-to-impossible feat for a $150 million to $200 million resort.
Casino Buyouts Which Failed
The deal with Advanced Consulting Inc. could fall through due to similar financing issues. Bethlehem Sands Resort & Casino, a thriving casino in Eastern Pennsylvania, had a couple of deals fall through despite intense talks. Keating & Associates claimed to be in negotiations for the LVS casino, which has the highest revenues of any Pennsylvania casino.
Las Vegas Sands claimed they never received an offer in that case. Later, MGM Resorts and LVS talked for several months about a $1.3 billion deal for the Bethlehem Sands. Press releases even went out announcing the deal, but it fells through after for unknown reasons about 4 months of discussions.
Eventually, the Poarch Band of Indians out of Alabama bought the Bethlehem Sands. The deal has to be right for both sides for a purchase to work.
About Atlantic Club
Atlantic Club was the first land-based casino in Atlantic City. Steve Wynn opened the resort as the Golden Nugget Atlantic City in the late 1970s, after the New Jersey legislature approved casino gambling in 1976. In the early to mid Eighties, the Golden Nugget AC was the hottest property in Atlantic City – until Steve Wynn had a dispute with New Jersey regulators and sold the property.
The casino eventually was purchased by the Barron Hilton, who renamed it the Atlantic City Hilton. The casino would change hands several times over the years, undergoing a series of name changes. When the Atlantic Club closed in January 2014, it signalled the worst year in the history of Atlantic City casinos. Three more casinos — The Showboat, Trump Plaza, and Revel Casino — each would close their doors later in the year.
