[toc]AC Ocean Walk LLC, a company run by Colorado businessman Bruce Deifik, is poised to take over Revel Casino in Atlantic City.
Press of Atlantic City reported on Monday that a Moody’s credit report indicates the company is plans to spend $375 million to buy and reopen the former Revel Casino Hotel.
The Moody’s report cites financial documents needed to secure the loans, not a record of sale.
The sale price is allegedly $200 million. AC Ocean Walk is ponying up another $175 million to get the property up to operating standards.
When would Revel reopen?
The property could be reopened as soon as May 2018, according to Moody’s.
That seems like a rather accelerated timeline, but working in Revel’s favor is the newness of the property. Revel opened in 2012. It shut down just two years later.
For the past three years, the property kept its doors closed. However, the structure and furnishings are still modern, particularly by Atlantic City casino standards. They should be in good working order.
If the timeline is accurate, the reopening of Revel would undercut the opening of Hard Rock Atlantic City, which is expected to open over Memorial Day. The Atlantic City market is unlikely to be able to support both mega-properties opening within weeks of one another.
Sale has been rumored for several months
This isn’t the first hints of the sale. In fact, most people following the story felt a sale was inevitable.
If the property has been sold, the sale is only a surprise to one person: the man who owns the property.
Current owner Glenn Straub has vociferously denied that the property was being shopped or that any deal had been reached in the past. At time of writing, he could not be reached for comment on the latest development.
Straub has been singing the AC blues
If Straub’s intentions were to reopen the property rather than flip it for a nice profit, he ran into a major snag when he refused to open himself up to vetting for a casino license.
Straub’s stance was that if he hires third-party company to run the casino, he shouldn’t have to apply for a casino license.
The state Division of Gaming Enforcement and Casino Control Commission disagreed with that assessment. As of now, two sides remain locked in a battle of wills that Straub has little chance of winning.
A look inside Revel
Revel is the largest and newest casino in Atlantic City.
The $2.4 billion property boasts nearly 1,400 hotel rooms as well as a parking garage with 7,000 spaces. Revel also has 13 restaurants, a 32,000 square-foot spa, retail space, and other world-class amenities.
The casino floor isn’t a match for some of the other Atlantic City casinos, but it houses more than enough gaming equipment (and new gaming equipment at that) to entertain its guests. During the time it was open, Revel had 100 table games and 2,000 slot machines.