Bankrupt Revel Casino Sells At Auction For $2 Billion Less Than It Cost To Build

[KeepItReal]

Source: Business Insider and Reuters

Brookfield Asset Management has won the auction for Atlantic City's bankrupt Revel Casino Hotel, a source familiar with the situation said.

The company bid $110 million for the casino complex, topping a $90 million bid by the Florida real estate developer Glenn Straub, who did not submit a superior bid by 5 a.m. ET, the source said.

Revel Casino, which cost $2.4 billion to build, opened in 2012 and closed on Sept. 2. It was meant to be a Las Vegas-style resort, but its fine dining, striking design, and entertainment did not catch on in a city that relies on bus tours and buffets.

Revel Casino had agreed to use Straub's initial bid to set the benchmark for other potential buyers. Straub had said he wanted to create a university at the site to attract the world's brightest minds to tackle social problems like hunger.



Read more: http://www.businessinsider.com/r-brookfield-wins-auction-for-bankrupt-revel-casino-2014-10

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[wolfie001]

1. Such a morbidly obese failure.....

....that would be the Governor.

[Blue_Tires]

13. +1

[beemer27]

2. Just a thought

I am curious just how many people are going to take how many tax write-offs on this deal. There are people right now figuring ways for the taxpayer to pick up most of the tab for their failed enterprise.

[wolfie001]

4. The greased-pig Christie will rob the State pensioneers......again.......nt

[calimary]

8. Welcome to DU, wolfie001!

Glad you're here! That's because he doesn't see that pensioners have the needs that the fat cats do. That's simply a load of "free" money the fat cats can do fancy-ass risky-as-hell deals and stuff with, after all! Just so most of that "free" money winds up padding their own pockets - which he knows they'll pour into his campaigns to say a nice "thank-you."

[Hoppy]

3. Another Christie economic failure.

[NCjack]

5. Au contraire. The cost to build will be buried in the Port Authority book and the $110M

sale will appear in the State's income book. That's a clear gain of $110M for the people of NJ. (Profit is an accountant's creation.)

[calimary]

9. Welcome to DU, NCjack!

Good to have you with us! But I doubt it will directly benefit the people of New Jersey. Any more than sinking a king's ransom into risky speculation (like building the damn thing in the first place) seems to have done.

[Sherman A1]

6. On the upside

it did sell and that could lead to it reopening in some form as something which would help to create jobs. Even if it went at bargain basement prices, it still sold.

[davidpdx]

14. Yes, hopefully it can be

Though I'm not sure how hard (or expensive) it would be to change the interior structure of the building in terms of the configuration.

[eringer]

7. Good Riddance to this Non-union Monstrosity with No Buffet Tables

Soak this up:

"Few are watching more closely than Gov. Christie, who last year created a state-run tourism district to jump-start the city's turnaround, eased casino regulations to entice developers, and earmarked $261 million in state tax credits toward Revel's completion. To Christie, much of Atlantic City's future - and to a large extent, its survival - will depend on how Revel performs."

$261 Million!!!!! Holy Cow!

[calimary]

10. He wanted to "create a university" with the brightest minds and blah-blah-blah?

Um... and we want THAT? How many "universities" do we have now, that were set up by private interests with ulterior motives and agendas? Like Liberty "University"? Or Regent "University"? If it's a big-ass real-estate developer behind this, I would strongly suspect his motives are strictly selfish and profit-based, NOT civic-minded OR altruistic or in ANY way focused on the greater good.

[hughee99]

11. This is how these casinos are built now.

Someone spends massive amounts of money to construct it, can't possibly be profitable to recover that money, declares bankruptcy and sells it off to someone else who can make money because they only paid 1/10th what it cost to build it.

[The Wizard]

12. Horcross, the NJ power broker and

the guy who made Christie governor is said to have had an interest in Revel. The governor funneled state resources into Revel to appease Norcross and his fellow investors. And that's another scandal that's been waiting to be exposed. To effect this the Governor took funds intended to go to north Jersey and sent them south to the new Boardwalk Empire. As they say in some circles, unclean hands.