Someone Who Isn’t Glenn Straub Now Has A Mortgage On Revel

Posted By Eric Ramsey on January 5, 2018

[toc]Despite the denials of Glenn Straub, the sale of his TEN/Revel resort seems to be marching forward.

Just before Christmas, rumored buyer Bruce Deifik established a new corporation in New Jersey. As reported by Route 40, ACOWRE LLC was incorporated as a “casino hotel resort” company. It lists TEN’s address as its primary place of business.

Two new Revel documents

Route 40 uncovered two new documents, both filed with the county clerk late last month.

The first is the one that establishes the new LLC in New Jersey. ACOWRE LLC was created just three days prior in Delaware, and Deifik’s name is listed as the authorized representative.

The other document is a Notice of Real Estate Settlement regarding the properties of TEN/Revel. The document appears to be an update to a previous notice filed in October. The new one changes the parties involved to read ACOWRE and JPMorgan Chase. In other words, the company now has a mortgage on the casino.

Deifik’s other NJ company, Ocean Walk AC, previously had a mortgage agreement in place with Deutsche Bank. The Division of Gaming Enforcement also confirmed it had received a casino application from the group.

Prior to that, Deifik had filed an agreement of sale via yet another company, Mile High Dice.

What’s next for TEN/Revel?

An initial report from Moody’s Investors Services revealed that Deifik planned to reopen the resort as early as May 2018. With $175 million of improvements to make, that seems like an ambitious timeline to meet.

Regardless, it certainly does appear that the sale is moving forward. None of the documents disclose the sale price, but the Moody’s report was based around a $200 million proposal.

Deifik has been silent on the rumors, while Straub has loudly denied them at every turn. The paper trail seems to be telling a different story, but until one of them flinches on the news, the evidence is still circumstantial.

The $2.4 billion resort has been shuttered since September 2014.

Will Straub actually let go?

If Straub is selling the property, it’s not clear why he continues to deny the rumors. And if he’s not selling, why on Earth not?

The real estate mogul bought Revel out of bankruptcy court for pennies on the dollar back in 2015. The previous owners had been bankrupt twice and racked up a debt of $1.5 billion in the span of two years. Straub paid just $82 million for what was, at construction, the city’s richest resort.

It has been a bit of a circus since.

The eccentric Straub spent the next few months just trying to get the lights turned on in the building. He eventually bought the power plant to end the dispute, but not without spending tens of millions more dollars. He’s promised to get the resort up and running on a handful of occasions since, but he’s never really come close to doing so.

Straub doesn’t even have a license to operate a casino. Nor a liquor license, another fairly important thing for a casino owner to have. He’s currently tied up in a court battle with gaming officials over the semantics of their requirements. And he doesn’t get along with state lawmakers, either.

If you’re Glenn Straub, why would you not sell the property at this point? It truly seems to be more hassle than it’s worth. And if you’re not going to play with your toys, why not let Bruce Deifik have a go? He’s apparently holding a check for $200 million.

The state would prefer to see someone do something useful with the building, too. At the moment, it’s nothing more than a vacant, billion-dollar box occupying a prime piece of Atlantic City real estate.

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Eric Ramsey

Eric is a reporter and writer covering the NJ gambling industry, online poker, sports betting regulation, and DFS. He comes from a poker background, formerly on staff at PokerNews and the World Poker Tour.

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