New Jersey’s Stockton University announced on Friday that it has eventually finalized the sale of the former Showboat Casino for the amount of $23 million. The once-popular gambling venue was purchased by Philadelphia developer Bart Blatstein.
In December 2014, Stockton University paid $18 million for the former casino, planning to turn it into a satellite residential campus for as many as 1,000 students. However, under a legal contract with the owner of neighboring Trump Taj Mahal, the Showboat could only be used as a hotel and casino. On the other hand, Caesars Entertainment Corp., former owner of the shuttered gambling venue, sold it with a covenant that stated the building could be used as anything but a gambling venue.
With the two conflicting agreements, Stockton University found itself in the middle of legal bickering that continued for months and cost the university millions of dollars for maintenance and security. University officials have tried to sell the former casino property since last spring but ongoing lawsuits prevented the sale until late in 2015.
The Showboat was initially to be sold to Florida developer Glenn Straub, who also purchased the closed Revel Casino in 2015. However, the deal was terminated and Stockton University started looking for another buyer.
It was Mr. Blatstein who emerged as an interested party. The developer and university officials were to complete the sale in November. The two sides, however, agreed on a two-month delay so as for the buyer to be able to reap a certain tax advantage. In exchange, Mr. Blatstein paid $23 million for the property instead of the initially announced amount of $22 million.
Commenting on the deal’s completion, Stockton University President Harvey Kesselman said that they are happy to close that chapter of their history and are ready to move on to other exciting plans. The official further noted that it has been a pleasure to work with Mr. Blatstein, with the latter having “a strong record of successful development and a commitment to Atlantic City.”
The university is planning to build a more modest satellite campus at the site of the former Atlantic City High School. The development would spread over 56,000 square feet and would house 500 students. The university is planning to spend up to $18 million on the new academic building.
As for the future of the Showboat, its new owner has not revealed yet plans for the former hotel and casino complex.
