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 )
I spent 20 prime years of my life working at this casino met great people but bad greedy upper management ruined this gem of a property in a great location Had they put money back in instead of out the back door this place could still be a profitable casino but not now its a distant Steve Wynn memory Its time to knock this piece of shit down The OLD NUGGET Is DEAD
Only way for any of AC’s challenges to change is for someone to take the risk an invest in AC. So I thank anyone willing to take that leap of faith! local government doesn’t have the means or know how to do it alone, even if they wanted too. They need people and company’s like, showboat owners, Stockton, Dave & busters, etc! Actually real estate in AC, across all price range’s including high end condos are at all time high’s. As the market starts to cool off, it’ll be a great time to buy & invest.
I've always read a lot of negative things about Atlantic City people love putting the city down. However have you been to New York City? Have you been to Philadelphia? Have you been to Chicago? Atlantic City, is a lot safer than those 3 cities a lot cleaner than those 3 cities and there is less homeless in Atlantic City. You can't stop at a red light in Midtown Manhattan without somebody asking for money. I'm not saying Atlantic City is perfect. It's far from it for those makes sayers they should take a trip to Vegas and see all those s***** areas they have over there.
i love action movies and my idol is none other than Gerard Butler. this guy really rocks`
You’ve made my day! Thx again.
AC is a real dump!! It’s worse than ever, no matter what they do or how they fix it nothing will change! So glad we sold our condo & got out !!
Luxury is all well and fine, but to revitalize a city, any city, moderate & lower income housing needs to be added along with it, and used to be required by the state. Luxury and poverty don't mix without the buffer of the masses in between. These wealthy developers want to cater to their own, forgetting that they are few. Who buys a hotel without knowing it's condition. It's a shell, and will likely end up half finished in bankruptcy. Possibly good intentions, possibly another 'artist' with a different name. We'll see.
I feel some Jewish lightning ?? coming on!!!
AC is a total run down dump. I stopped going there when my friend was robbed at gun point. So many shady characters walking around, like zombies.
It's a shame AC should have been a huge tourist attractions. Beautiful beach really nice casinos with high end restaurant. However the Broadway is a mess scary looking people begging.
They must think with Stockton college right across the street that they will appeal to the students parents when the come to visit but seriously what’s that twice a year? Why wouldn’t you stay in a casino hotel where the rooms a partially subsidized by gaming. One of the dumbest ideas ever. The owner who compares this to Florida is so wrong. People go to Florida to escape the cold and enjoy the sun. People who go to AC go there to gamble not look out there window. Can’t wait to see how much this property goes for when they lose it in bankruptcy in a few years.