ATLANTIC CITY — A Colorado-based group is expected to invest more than $375 million to buy and reopen the former Revel Casino Hotel, according to a report from Moody's Investors Service detailing the deal's proposed financing.
According to the report, AC Ocean Walk LLC will pay $200 million for the property and invest an additional $175 million. The property is expected to reopen in May 2018, according to the report.
In October, AC Ocean Walk LLC and Polo North Country Club Inc., owned by Glenn Straub, filed a notice of settlement for the sale of the property. Straub has vehemently denied he is selling the property. On Monday there was still no record of sale of the casino at the Atlantic County Clerk's Office.
Straub did not return calls seeking comment.
The Moody's report is based on financial documents surrounding the proposed loans needed to make the deal. In November, the company signed a mortgage committee letter with Deutsche Bank, according to county records. No terms were released in the filing.
"Obviously having a company behind the next phase of the shuttered Revel with a solid business history and 'liquidity' to operate the property as noted in the Moody’s statement is a beacon of light for a property that has become a case study on so many levels," gaming consultant Robert Ambrose said. According to state business records, the company is managed by Colorado-based Ten RE ACNJ, run by Colorado-based businessman Bruce Deifik, who did not return messages seeking comment.
Deifik, who is also president and CEO of Integrated Properties, is no stranger to property acquisition deals.
The company was formed in April 1990 to handle acquisition, development, asset management, property management, leasing and disposition of commercial properties under the ownership of Deifik and his investment partners.The properties have included assets such as the Hyatt Grand Champions Resort in Palm Springs, California, and prominent office and retail centers in the Denver and Phoenix metropolitan areas.
AC Ocean Walk will operate 100 gaming tables, 2,000 slot machines, 1,399 hotel rooms, pools, a spa, nightclubs and 13 restaurant options, according to the report, as well as 55,000 square feet of retail space and a parking garage with more than 7,000 spaces.
"The property is expected to slowly capture its fair share of the market given the quality of the property — (originally opened in 2012), breadth of project offerings and a revamped operating strategy aligned with the demands of patrons in the market," Moody's report states.
Straub bought the $2.4 billion Revel for $82 million in bankruptcy court in August 2015 and has missed several self-imposed deadlines to reopen.
"Reading between the lines, we are witnessing a diverse market growing in front of us now in A.C., property by property and by established stakeholders," Ambrose said. "Slowly as investors have begun their return to the city, the confidence in the financial markets will lend itself to even more development."