Revel Casino Deal back on with Glenn Straub – Sale Price set at $82m

Just two weeks ago, it looked like the much-anticipated deal between Glenn Straub and Revel Casino was off the table. Due to Straub’s reservations and demanded price reductions, the Revel wanted to walk away and keep the real estate developer’s $10 million. But seemingly out of the blue, a deal is back on the table for Straub to buy the casino for $82 million.

This is quite a bit lower than the original $95.4 million bid that Straub made in Revel’s bankruptcy court hearing. They originally lost to a company named Brookfield Asset Management ($110m bid), but the latter dropped out over a dispute with the utility company that Revel owes debts to. After winning the bid, Straub then tried to get the price reduced to $87 million because of the utility dispute and a problem with HQ Nightclub, a tenant that wants to stay in the casino despite the sale.

According to the Wall Street Journal, Straub’s party has already transferred $72 million to Revel owners, which, when combined with the original $10 million deposit, makes $82 million.

As alluded to before, Judge Gloria Burns had ruled that the Revel could terminate their original deal with Straub and keep his $10 million. However, because a signed order hadn’t been entered yet, the two sides were able to continue discussions again. Following the renewed deal, Straub says that he’s been talking with various tenants “with an eye toward being open and operational for the [summer] season.”

Aside from purchasing the property for $82 million, Straub also has plans to sink another $100 million into Revel. The additional money would go towards expanding the 47-story boardwalk tower and relocating some of the building’s facilities to make the lobby more accessible. He wants to have most of the building operational by the summer and help to make Atlantic City a more family-friendly destination.

With a purchase agreement now in place, Revel management can finally end their disastrous reign in early March, when the deal is finalized. The $2.4 billion resort was launched in April 2012 with hopes of bringing a Vegas feel to the East Coast. However, just over two years after opening, Revel filed for Chapter 11 bankruptcy last June and shut their doors in September. Since that time, they’ve continued to rack up utility bills and legal expenses that still need to be paid.