Sale of ex-Atlantic Club casino fails; back on market
Jan. 05, 2016
ATLANTIC CITY, N.J. (AP) — The proposed sale of Atlantic City's former Atlantic Club casino to a Pennsylvania firm that planned a water park as part of the site's rebirth has fallen through, and the property is back on the market.
TJM Properties, which bought the former casino for $13.5 million from Caesars Entertainment in May 2014, had planned to sell it to Endeavor Property Group in a deal that initially was to close by mid-2015. But that fell through Monday, according to Terence J. McCarthy, president of TJM.
"Endeavor made an exceptional effort to bring this project to fruition," he said. "Unfortunately, Endeavor was not able to generate the additional deposit funds needed.
"Both our firms have invested substantial time and money in the planning process. We felt that the project was good for Atlantic City," he said. "Endeavor has laid a foundation that has generated interest in government funding that may enhance the value of the property, and we are disappointed that they were unable to continue."
A message left with Endeavor seeking comment was not immediately returned Tuesday.
Endeavor AC, a property company based in Ambler, Pennsylvania, announced plans last June to convert the Atlantic Club into a non-casino resort with an 81,000-square-foot, indoor-outdoor water park. Plans also called for conference and event facilities, a family entertainment center, new restaurants and retail space along the Boardwalk.
McCarthy said several other companies had expressed interest in buying the former casino, but TJM rebuffed these offers while it was under contract with Endeavor.
A deed restriction placed on the Atlantic Club by Caesars Entertainment preventing the property from being used as a casino again may limit its marketability.
The Atlantic Club was the first of four Atlantic City casinos to go out of business in 2014, shutting down Jan. 13 that year. It was followed by the Showboat, which is being sold later this month to Philadelphia developer Bart Blatstein and could possibly reopen as a casino; Revel, which was sold to Florida developer Glenn Straub, who also has been equivocal about whether it will reopen as a casino; and Trump Plaza, which no one seems to want.
TJM also owns another former casino property in Atlantic City, operating the Claridge as a non-casino hotel.
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