As the Boardwalk takes four steps backwards with Casino closings it moves one step forward with a new gambling playground.
A federal bankruptcy judge Gloria Burns slammed her gavel down last week declaring Revel sold to Brookfield Asset Management for the bargain basement price of $110 million.
Revel Casino cost 2.4 billion to build and closed on September 2nd after a 2 year run without turning a profit. It is the 4th casino to close this year in Atlantic City and may not be the last with rumors of Trump Taj Mahal closing on November 13th.
A Florida developer Glen Straub was none too happy about being the losing bidder complaining that Revel’s lawyers didn’t keep their promise to share competitor’s bids. The Revel camp adamantly denies such claims.
Revel attorney John Cunningham commented on the sale:
"The best news is Revel is going to reopen as a casino. It's not going to be a university."
This was a jab at Straub who had proposed using the property as a university. According to Cunningham Straub planned on a higher bid but did not do so during the all night auction. A decision to take Brookfield’s bid was decided in a quick sale instead of waiting a week later for a possible new bid by Straub.
Cunningham told the judge:
"This is a disgruntled losing bidder.
Mr. Straub had to put his money where his mouth is. He didn't do it.
Our decision was to take the bird in the hand. It was too much money to risk."
Straub had complained during auction that he has a medical condition and had left his medication in Florida putting his health at risk.
He told the judge about the duration of the auction:
"I was wandering up and down the streets, which is what caused my medical condition. It was cold, high anxiety. This is life and death here. How can they keep continuing to do this?"
The Revel deal will take approximately 60 days to close.