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 )
Good luck with these clowns If you do work there get 100%%% paid up front. Worse then working for trump.
Anything done to improve A.C. is just putting lipstick on the pig. The entire town should be levelled.
ATLANTIC CITY IS A DUMP... THEY NEED TO BUY UP ALL PROPERTY AND RELOCATE THEM TO HOUSING A MILE AWAY.. THE MAYOR IS A FKN CON... THE CORRUPTION , THE VOTERS.... THE OTHER STATES HAVE CASINOS.. THE ONLY TOURIST ATTRACTION IS THE OCEAN.. AND ITS NOT GOOD SAND AND HAS DRUGS ALL OVER THE PLACE. YOUD NEED TO CLEAN IT ALL OUT.. OR IT WILL STAY THE SAME. NO ONE WILL SHOP AND WALK IF THEY SEE ALL THE CRIME AND POVERTY. .. AND ITS ON THE BOARDWALK.. ITS FEET FROM THE CASINOS..
Ac is trying to revitalize a little late. Yeah Showboat is opening a waterpark soon, Dave and Busters moving to the outlets, and the boardwalk coaster got approved , but they are lacking in better ways to attract people in. If they want to make it more family than just gambling, they are going about it weong Steel Pier is in dire need of an update, there are still way old and abandoned attractions they are just eye sores, not to mention how dark some areas of the boardwalk are still dark voids at night despite lighting. And the now abandoned boardwalk mall doesn't help anything. They only just started updating route 30 and some of the state streets. If the could maybe get a bus line that wont take 4 hours from Seaside to AC running or hell if the coastal train line was expanded we might be able to see more day trippers/weekenders who don't have to worry about the parking nightmare or piling their family into a tight car for an hour+ only for there to be almost nothing for kids. Decent public transport between and Seaside and its local beach towns and AC might actually attract in out of staters on not as nice days but who knows. Everyone is for self profit and not for helping everyone in the area.
We just got back from Atlantic City. Have been there many times and loved all the different casinos . However , this last visit was a game changer. The area is so filled with the homeless and shady looking characters . Watched one man eating out of the trash can. We didn’t feel safe walking the boardwalk in the morning . The restaurants are struggling to stay open. The Tanger outlets were like a ghost town . You need to clean up the rif raf , fix the bumpy , pot holed streets. And make it safe to walk around , I honestly don’t know who would invest in property there with it being like a ghetto. The casinos are not that busy which is a fair indicator. . Very disappointing
Just do what they did with the former Plaza (and no, I won't mention the name that comes before Plaza, if you get the idea) and implode it.
AC was supposed to be revitalized in 78 with resorts...it never was...Chris Christy held back money.. panhandling with proper ID is legal...covid stopped the busses from going down.. Stouts in my area no longer goes. I could drive but parking is scary...why would anyone want to buy condo in AC now???
Why not make another casino? This will be an absolute waste of time and money and will ultimately fail… AC wanted to be the Las Vegas of the East yet their casinos suck mostly! Why not make something different that includes a casino with it
I I do hope this comes to Life! We have a condo in the Chelsea Stockton area but our best investment has been in our home in North Palm Beach Florida this state is booming perhaps it’s our governor perhaps people just want out of a state and city that has made us promises that were never fulfilled! We have a Ritz Carlton complex going up basically around the corner from us starting at 4 million and I would venture to guess most of them are sold we own three properties Two in Florida and our condo in Atlantic City. I have grown to really enjoy Atlantic City it has a history like no other however it has been allowed to fall into disrepair and I welcome these new builders who are taking a chance to restore it back to its original glory! Wishing them the best and their endeavor to bring it back!
And who’s supposed to be able to afford to stay there? AC isn’t the tourist attraction it used to be. This is gonna fail in due time
You should of listen to Ronny Young. He had the idea but you idiots didn't listen.
Just what we wanted to hear more LUXURY for the elite and not enough to satisfy the normal working day family. Another big shot taking care of the chosen ones. As a frequent visitor to AC hope its never happens.
We are pleased to hear Colosseo is moving forward to rehabilitate this building. This commitment is a huge step forward in the revitalization of the Chelsea Area and Atlantic City as a whole. Great News!
If they develop this property first class cash will come, mortgages won’t be a factor. 2800 to 3000 sq ft units with panoramic ocean views will sell fast. I manage a luxury hi rise and hardly ever do people need mortgages in my building. Having a hotel / condo background I find this project exciting. I knew all building systems were in need of replacement , my husband was one of the last engineers out the door when they turned off all mechanicals that keep a building alive.
Hope the buyers of the "condo-tel" don't need mortgages, as Fannie Mae & Freddy Mac won't finance them.