Revel Sale approved for $95.6m, but Buyer demands Lower Price

The Revel casino is one step closer towards being sold after Judge Gloria Burns approved a sale to Florida developer Glenn Straub. The approved price is $95.4 million, although Straub’s lawyer, Stuart Moskovitz, has since argued that the sale price should be lower due to an unfair auction that was lacking in transparency.

Straub’s company, Polo North Country Club Inc., was originally beaten in the auction by Brookfield Asset Management, which bid $110 million. However, the Toronto-based company decided to walk away and give up their $11 million deposit because of a dispute involving electrical payments.

Since Brookfield pulled out, it’s clear that Straub wants to pay less for the failed casino. Moskovitz even suggested that a new auction should be held since the original winner walked away. But Judge Burns rejected this idea while saying, “I get it. Everybody wants to pay as little as they can.” She’s also asked that Straub’s camp fill out a sales order, after which the sale can be completed within 30 days.

Moskovitz countered by saying, “We’re not going to make any decisions today.” He added that his client will consider appealing the sale in the U.S. District Court. As Revel attorney John Cunningham explains, this is essentially Polo North objecting to their own sale, which is the first time that he’s seen this in his 23 years of practicing bankruptcy law.

Despite Straub’s hesitancy to pay the $95.4 million that he originally bid, one has to consider this a bargain since it’s 96% less than Revel’s building cost of $2.4 billion. This makes Revel the most-expensive casino in Atlantic City’s history, as well as the biggest failure too. The pricey resort had hoped to usher in a new era in Atlantic City and turn around the beleaguered gambling destination’s falling revenue. However, it was open less than two years and failed to generate much revenue in its short history. Now the hope is that this multi-billion dollar mistake can be sold and end the saga.

Straub has previously stated that he wishes to add the bargain casino to his portfolio because it’s part of his larger plan for Atlantic City. But before that happens, it seems that Straub is interested in getting whatever leverage he can out of the failed Brookfield deal while saving himself a few million dollars.