Glenn Straub now owns a $2.4 billion casino with no way to power slot machines. Or, lights. Or, anything.
Yes, it finally happened. Yesterday, a judge approved the sale of Revel to Florida developer Glenn Straub for $82 million. The failed casino cost $2.4 billion to construct. As multiple reports pointed out, that’s four cents on the dollar.
Per the Inquirer, Straub is staying in Revel’s room 327 until his yacht arrives at the Frank S. Farley Marina. But Straub has plans for Atlantic City that go past Revel. Here is a sampling of what he plans to do. He’s calling it The Phoenix Project. Read more »
You’re not going to believe this.
No, wait, you probably will. U.S. Bankruptcy Judge Gloria M. Burns today did not approve the sale of the failed Revel casino to Glenn Straub. The hold-up is a pending appeal by several clubs and restaurants inside Revel that opposed Straub’s purchase of Revel. Burns stayed that sale in January.
Here’s where things get complicated: That sale is actually dead. Straub didn’t complete it. But Revel and Straub then struck a deal for Revel at a lower price. Still, per the Inquirer, the previous ruling means Burns doesn’t have jurisdiction to approve the new sale.
But wait, there’s more. Read more »
Stop us if you’ve heard this before: A judge has put the sale of the Revel Casino on hold as a new bidder for the shuttered Atlantic City property has emerged.
The week-long postponement comes after a Los Angeles real estate developer emerged with a last-minute effort to purchase the property and as former tenants and the Atlantic City resort’s power plant raised objections to the proposed sale.
Florida investor Glenn Straub’s company, Polo North Country Club, struck a deal with Revel AC to buy the resort for $82 million last month.
“I need to be convinced that it is the best deal the debtors can get,” U.S. Bankruptcy Judge Gloria M. Burns said today. “I have a lot of questions but the big question that I have is this in the best interest and I can’t tell that yet.”
Izek Shomof, a Los Angeles real estate developer, is the new potential bidder. The Revel cost $2.4 billion to build, opened in 2012, and filed for bankruptcy twice before closing its doors. A previous sale to a Canadian company fell through, and it has appeared several times that Straub’s attempts to buy the property had faltered.
After all this, Revel will be sold to Glenn Straub.
The Wall Street Journal reported today that the Florida developer and Revel have struck a deal in principle that would see Straub buy the failed casino.
“All issues are pretty well resolved,” Mr. Straub told The Wall Street Journal. “We’re buying what we originally intended to buy, and the dollar figure will reflect that.” The Press of Atlantic City reports the proposed sale price is $82 million. Straub had previously bid $95.4 million for the property. Read more »
Revel looks like it’s headed back to the auction block.
Yesterday, a judge terminated Florida developer Glenn Straub’s agreement to purchase the failed casino for $95.4 million. This is the second deal to fail; in December, a deal to Toronto-based Brookfield fell through.
So what now? The Press of Atlantic City says attorneys for both sides are still talking. Revel’s attorney said if Straub “came forward today ready to close, I suspect that we would take his money.”
But Straub tells the Inquirer he’s out, though. “We’re not going to buy it again,” he says. “We have to move on.” A judge ruled Revel can keep Straub’s $10 million deposit, but told it not to spend it yet. Straub’s attorney plans to appeal, while Revel will ask a judge if Revel can start spending the money immediately. Read more »
The future of the closed Revel casino, Atlantic City’s $2.4 billion boondoggle, continues to be up in the air. Not long after a judge placed the sale to Glenn Straub on hold, the power plant that continues to serve Revel says it will shut off heat, water and electricity at 5 p.m. on Thursday.
Although it’s closed, the building still needs power to prevent the elements from ravaging Revel. “If you shut down the electric utilities to the building, you’re going to get an instant build-up of heat and humidity inside the building [in hot weather], both of which are terrible for finishes, equipment, and everything else that’s inside that building,” Greg Lucado, director of construction-management programs at Philadelphia University, told the Inquirer. “You’ve got a very high humidity environment,” Drexel construction management professor Douglas Carne told the Press of Atlantic City. “That will be almost impossible to control without air handlers operating.” He noted that this would make fungus a factor.
In court filings, a judge wrote that there is no other way for Revel to get power than through ACR’s plant.
The Revel isn’t cursed, we don’t think, but even in bankruptcy it’s having a tough time finding its way to the future.
A federal appeals judge on Friday halted the sale of the bankrupt casino to Florida developer Glenn Straub, citing opposition from the Revel’s remaining tenants.
IDEA Boardwalk LLC – the real estate developer behind HQ nightclub — says it could lose its $16 million invesment at the REvel. Why? Because last month Chief U.S. Bankruptcy Judge Gloria Burns ruled the Revel can be sold “free and clear of liens, claims, encumbrances and interests.”
Read more »
Update, 1:45 p.m.: A judge awarded Revel to Glenn Straub‘s company. Straub did not get a discount he’d requested, and has been ordered to pay the entire $95.4 million he bid for the casino.
Straub’s lawyer said he will appeal for a stay of the sale.
Earlier: A federal judge is set to hear arguments today regarding the sale of Revel to Glenn Straub, the man who last year floated plans to buy the casino and turn it into a “university for geniuses.”
Revel, which cost $2.4 billion to construct, has been closed since 6 a.m. September 2nd. But there’s been a lot of news in the past few weeks! Late last year, ACR Energy Partners missed a bond payment and asked a judge if it could cut power to Revel. ACR was created to power the now-shuttered casino, Revel is its only customer.
It’s not clear if Revel can get power from another source; shutting down power to the building could cause it to be ravaged by fungus. “You’ve got a very high humidity environment,” Drexel construction management professor Douglas Carne told the Press of Atlantic City. “That will be almost impossible to control without air handlers operating.” Tenants that operated businesses at the Revel remain locked out and are fearful of ACR cutting power.
Everything is lining up for a “university for geniuses” to go into the former Revel casino in Atlantic City. Well, maybe.
A judge approved the termination of the sale of Revel to Brookfield Asset Management this morning, paving the way for Florida developer Glenn Straub to purchase the property with his backup bid of $95 million. Brookfield had bid $110 million.