[toc]Back in July, rumors swirled that there was a $200 million offer to buy TEN Resort in Atlantic City. The property’s current owner, Glenn Straub, denied the deal’s existence at the time.
Now though, the bidder is publicly singing the praises of what was once Revel Casino. They are also sweetening the deal, offering $225 million.
Buyers see NJ casino property as full of potential
The company interested in purchasing TEN is a private New York finance firm called Keating & Associates LLC. The group previously offered $220 million for the shuttered property. They added another $5 million to the deal last week.
Keating released a statement in tandem with their offer. The company’s co-chairman, Jeffery Keating, spoke about the potential of the closed casino:
“We feel that the Revel is a magnificent property that was never positioned the way that it should have been within the marketplace. We see it as a brand with global potential and Atlantic City to be an incredible launching point.”
“Our plan is to develop one of the world’s top experiential destinations and to allow someone to truly Revel in their experience; to enjoy life with passion and exuberance. We are excited for the coming future and the Partners, Brands and opportunities we will bring to this property and Atlantic City as a whole.”
Keating is not wrong. Atlantic City is in the midst of a renaissance.
Casinos are finally turning revenues around after a decade of declines. The city is diversifying beyond just casinos to offer more diverse entertainment options, too. While it is unclear if there is room in the economy for another casino to open up, Keating is right to see promise in the property.
Plus, given that the casino cost $2.2 billion to build, the price tag is certainly not that steep at all.
Straub denies any offers are real
There is one little problem in Keating’s plan, unfortunately. Straub claims there is no offer. More specifically, there is no cash on the table. At least, that is what Straub told the Press of Atlantic City.
“One day we counted all of the offers that we have received, and we counted 105. The problem is that people make offers and no one puts a dollar down.”
Straub still has not opened the property after purchasing it for $82 million in 2015. There are a list of reasons to explain why the property is not up and running. The most notable one is that Straub refuses to get a casino license. He is fighting the state in court on the issue.
In the meantime, Straub claims he is spending $1 million a month in upkeep on the property. That number only appears to be getting bigger too. However, this is a man who often insists what others are saying is not true, so take that with a grain of salt.
He also maintains he is still committed to re-opening the property, it just appears he is not willing to do it unless it is on his terms.
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