Manhattan financial services company Keating & Accosiates LLC announced on Tuesday that it has entered a contract to purchase a portion of land at Atlantic City’s Revel Beach that had previously been planned to be developed into a condominium complex.
The site is located next to the shuttered Revel Casino. Here it is important to note that Keating has also expressed interest in buying the former casino resort. The company said on Tuesday that the potential purchase is currently being discussed between its counsel and that of Revel’s current owner. Glenn Straub, the Florida real estate developer who currently owns the shuttered property, has previously told local media that he had never heard of Keating and its intent.
The New York private equity firm said in a statement from Tuesday that it would pay $8 million for the portion of land near Revel to its current owner Lazocean LP. The site was intended for the construction of the 30-story Metropolitan at Revel Beach condominium complex with 124 different units. Its owner hoped that the property could benefit from its near proximity to Revel.
The casino resort opened doors in 2012, but remained operational only for two and a half years. The Metropolitan at Revel Beach project was abandoned shortly after it became clear that Revel would never be able to turn a profit.
Keating said on Tuesday that it is planning to apply for a zoning change in order to be able to renew the Metropolitan project and to build a 40- to 50-story property with different condominium units as well as with more dining and retail facilities. Jeffrey Keating, Co-Chairman of the financial services company, said that they see bright future for that part of Atlantic City’s Boardwalk.
Keating’s Bid for Revel
Earlier this year, news emerged that Keating has made a $225-million offer to buy the shuttered casino resort from Mr. Straub. The Florida businessman acquired the property in 2015 and promised to reopen it and do his best to make it a profitable one. However, he has so far missed several reopening deadlines due to an ongoing conflict with New Jersey casino officials.
The state Casino Control Commission argues that the businessman cannot open the resort without obtaining a casino license. Mr. Straub, in turn, believes that he does not need a license as he plans to lease the casino portion of the property to a third-party operator.
The real estate developer’s failure to reopen the property has been spotted and commented on by Atlantic City officials, as well. Mayor Don Guardian, who lost mayoral re-election to Frank Gilliam last week, has criticized Mr. Straub for the way he has been handling the Revel situation and urged him to resell the property.
News emerged last week that the casino resort’s owner has reportedly reached a purchase agreement with Colorado-based businessman Bruce Deifik. However, the parties are yet to confirm whether a deal will take place.
