Atlantic Club Owner Says Condition of Former Atlantic City Casino Worse than Anticipated
Posted on: April 26, 2023, 08:18h.
Last updated on: April 28, 2023, 01:45h.
The owners of the former Atlantic Club Casino Hotel on the south end of the Boardwalk say the condition of the rundown resort was worse than expected. The property has sat vacant since it closed in January of 2014.
In the fall of 2019, TJM Properties, a real estate development firm based in Florida, agreed to sell the Atlantic Club to Colosseo Development Group. TJM acquired the former casino from Caesars Entertainment in May 2014 for just $13.5 million.
Caesars never actually operated the Atlantic Club but instead purchased the casino out of bankruptcy with Tropicana Entertainment for about $23.4 million. Tropicana acquired the casino’s physical slot machines, table games, and player database, while Caesars took control of the building’s physical structure and acreage.
Tropicana paid the bulk of the $23.4 million, primarily for the Atlantic Club’s player database. Before its closing, the Atlantic Club was a locals-oriented casino with the marketing slogan, “A casino for the rest of us.”
Caesars’ liquidation price for the Atlantic Club, which previously operated as a gaming resort under several other brands — including the Golden Nugget, Bally’s Grand, The Grand, and Atlantic City Hilton — came after Caesars decided Atlantic City was oversaturated.
Caesars decided to sell the property. That’s because it believed fewer casinos in Atlantic City would allow the company’s more prominent resorts in town, specifically Caesars and Harrah’s, to prosper.
After closing the Atlantic Club, Caesars shuttered its Showboat casino in August 2014. The Revel and Trump Plaza followed in September. The Trump Taj Mahal marked the fifth Atlantic City casino for closing when it permanently powered down its slot machines in October 2016.
AC Back On
It’s been more than nine years since the Atlantic Club closed down. Despite lingering economic concerns in New Jersey’s casino town, Colosseo believes the time is finally ripe for producing new life in the former Atlantic Club.
Colosseo, a residential and commercial real estate developer based in New York City, is led by Rocco Sebastiani.
Company officials said soon after acquiring the shuttered casino that Colosseo Development would renovate the property and reopen the resort as an 800-room nongaming hotel. Upon inspecting the property at 3400 Pacific Avenue, Sebastiani said the structure was worse than anticipated.
We had the plan to go in and modernize the furniture and the fixtures. But when we got in there, the systems didn’t work. It was really, really bad,” Sebastiani told ENR New York this week, a construction news source.
Sebastiani said not only was the building’s fa?ade falling onto the Boardwalk and streets below, but the interior was severely damaged by water intrusion and years of neglect.
As a result, Colosseo has been making the necessary repairs and improvements to bring the building up to code and ready the property for a major renovation.
Atlantic Club Future
Colosseo is preparing to transform the Atlantic Club into a mixed-use complex that Sebastiani has dubbed a “condo-tel.” The company plans to transform the property’s two towers into a high-end boutique hotel and a luxury residential condominium complex.
The 23-story South Tower will feature more than 130 condos ranging from 1,800 to 3,000 square feet. The North Tower will be a 330-room hotel. Most condos will feature 360-degree panoramic views of Atlantic City and the Atlantic Ocean.
“Growing up in Florida gave me inspiration. If you come here to go to the beach, why come here and not be able to look out the window?” Sebastiani asked.
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Last Comments ( 41 )
Best of luck to this developer but I feel tentative price point which is being published for condos will not be supported in AC market. For this price point, AC has ways to go which others have commented (fix the crime issues, weekly shootings, drugs, prostitution, streets) and give tax incentives to attract new businesses and real estate buyers. Should take the playbook from Asbury Park!
I have lived here in Atlantic City for over 25 years in an old but beautiful house just about a minute from the beach in Lower Historic Chelsea. I also lived in several of the little towns surrounding AC as well, Absecon. Galloway and Ventnor City. Living in any of these towns I never heard of such crap as I do living in Atlantic City. The third world condition of all of streets in this city, ALL of them. The unsynchronized streetlights to start. Before I get into the people who run this city, I will stop myself, hold my breath and just say that I am going tr o try so hard to sell my home in Atlantic City and hopefully move to a home on the island in another town anywhere but Atlantic City! This town is trash and after living in this area for over 40 years I don't see AC getting any better EVER!!!
Hire me, I will change it in 6 months.
With new casinos coming to NJ's most northern counties...ACi is getting scared! Especially now there's talk for 3 more casinos in NY purchased by the Sands corporation!
How many local family owned businesses will these charlatans bankrupt. Be paid in full up front!
Burp
Build trade schools
the taxes are just out of control, over 12,000 to live in a half decent place in ac. Not worth it florida is the way to go. So it will be over 12k in taxes plus HOA fees that’ll be a steal. Lol it should have been converted into Stockton dorms and given away just to not be the outdated eyesore it is today. But I do wish the developers the best of luck for trying I hope they have some success at cleaning it up for the sake of the city and boardwalk which is the best people watching ever
Trade schools
Ok
Judging by the overwhelmingly negative comments, this developer is very comfortable being a contrarian in projects they decide to finance and develop. I wish them well and hope they prove everyone wrong earning themselves a massive financial windfall.
Casinos like it dangerous outside...keeps everyone in! Do u really think casinos and mayor and govenor even try to clean it up? Could do it in a year
The betting rates are high. I love Las Vegas $1 bets. I am not a gambler but enjoyed the $1 min bets. Ac minimum bets in the evening go between $15 to $25. Food is costly, no happy hours or drinks special. Besides gambling nothing to do. even with dnb and whatever else their is. It just costly or just sucks. It would be nice if they had an all inclusive resort
Lowlife scum slum area full of druggies and homeless. Yeah right like anyone will wanna buy there. What kickbacks are being paid? Such a crooked town.
It will never happen. 10 years of non use of mechanicals is a major mistake and everything will need to be replaced now. When it sold, the generators, electrical systems and elevators were worth more than the entire property! There were 2 onsite elevator and escalator techs because they need constant maintenance. It's not like you can just power systems up and expect them to work after a decade! All of the mechanicals will be deemed "end of life" by manufacturers...meaning they are not eligible for service and need total replacement. The window for allowing upgrades instead of replacement has long ago passed. 2014 since they were used!!!!!! All manufacturers will just bust out laughing before hanging up the phone! When the owners see THAT MASSIVE price tag in an area long considered a slum....they will quietly withdraw their plans.