Another deal for the sale of the shuttered Atlantic Club Casino Hotel and its conversion into a water park resort has collapsed, The Press of Atlantic City reported on Thursday.
Real estate developer R&R Development Group announced last month that it planned to purchase the venue, investing $135 million to turn it into a non-gambling destination with family-friendly entertainment options. Ronald Young, owner of the development firm, told media back then that he hoped 300 of Atlantic Club’s hotel rooms would be opened by the fall.
It seems, however, that R&R Development Group has failed to secure the necessary funds to close the deal. Mr. Young explained that an undisclosed Chinese investor had backed off from the deal, pulling $35 million worth of finances for the project.
The real estate developer’s head told Atlantic City media that he considered it his mistake to believe that he could secure such a considerable amount in 2 months. Yet, Mr. Young pointed out that they are still committed to buying and redeveloping the shuttered property.
R&R Development has not been the first developer to have expressed interest in the former Atlantic Club. Last year, the property was close to being sold to Pennsylvania-based company Endeavor Property Group and being converted into a non-gambling resort with a water park and other attractions. A transaction did not occur as the buyer failed to lock the necessary financing.
Asked about comments, Dale Schooley, Acquisition Director at Atlantic Club’s current owner TJM Properties, the official said that they were surprised by the sudden turn of events. Yet, he pointed out that other groups have expressed interest in purchasing the shuttered property, so they were not that concerned about its future.
Atlantic Club, originally opened as Golden Nugget, was one of the emblematic casino resorts on Atlantic City’s Boardwalk. It graced the once-popular casino hub’s skyline for 34 years before closing doors in early 2014.
Atlantic City has lost four more casinos since then, with three of those being shuttered in 2014 and shortly after Atlantic Club’s closure. The massive failure of gambling venues in the city was the result of its worsened economic situation as well as of the opening of similar properties in neighboring states, among other things.
Signs of improvement have been popping up over the past year, with the reopening of the Showboat as a hotel venue and the sale of the former Trump Taj Mahal to major casino developer and operator Hard Rock International being seen as two such signs. This is why TJM Properties may be considering it the right time to sell Atlantic Club to a developer that is capable of reviving the property.
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