Selling a hotel in Atlantic City isn't easy, as evidenced by Florida developer Glenn Straub's efforts to reopen the city's Revel after buying it nearly a year ago. So it should come as no surprise that the sale of the city's Atlantic Club Casino is similarly convoluted.
TJM Properties acquired the casino in May 2014 for $13.5 million and planned to sell it off to Endeavor Property Group. The deal should have closed in mid-2015, but instead has fallen through according to TJM president Terence J. McCarthy. McCarthy told the Courier-Post that Endeavor was "not able to generate the additional deposit funds needed."
McCarthy also said that there were a variety of companies interested in buying the casino before TJM decided on Endeavor. As the deal neared what was supposed to be its fruition, Endeavor revealed plans to convert the Atlantic Club into a non-casino resort complete with an 81,000-square-foot indoor water park.
These upgrades would cost as much as $160 million, and the company was committed to this strategy. According to Philly.com, Endeavor had also separately purchased a parking lot adjacent to the casino for $1.5 million in October as part of this redevelopment plan. Now, the status of the purchased land is also under scrutiny.
But is the deal really dead? In a statement to the Press of Atlantic City, Endeavor spokesman Mark Naples said the company has "a very strong and creditable private equity source to finance the acquisition and development of the Atlantic Club property as an indoor waterpark resort. Endeavor is in the process of satisfying this capital source’s documented funding conditions." Naples also said that Endeavor is considering other sites in Atlantic City for development should the plan actually fall through, though the company has been paying the carrying costs for the casino.
News of another failed casino acquisition in Atlantic City may be tough to hear, but the destination's casino revenue actually increased nearly 1 percent in November 2015, compared to the same period in 2014. Unfortunately, much of this increase is being credited to Internet gambling, which increased 51 percent year-to-year.