Local media reports that a plan by TJM Properties of Florida to sell the former Atlantic Club casino to local investors who planned to turn the property into an indoor waterpark resort has been taken off the table.
Investors had until Monday to show proof of funding, but the group was reportedly not able to show that financing was secured for the $135 million deal.
Last month, the group of investors, R&R Development Group, a company headed by Philadelphia investor Ronny Young and Robert Reilert, a former casino exec. announced the deal. The Associated Press reports that TJM is none too happy with the development.
“We were a little annoyed they would make an announcement like that without making sure they had their financing,” Dale Schooley, TJM’s director of acquisitions said.
The property is still a hot commodity according to Schooley who said several potential investors have approached them about the former locals casino that closed in January 2014.
“We showed the property four times last week, and we have two more parties interested,” said Schooley. “We’re very excited at the level of interest in this property.”
The Associated Press reports that Young has indicated he would remain in the bidding process to acquire the property.
According to a report yesterday, Young told the AP, “This is not over,” said Young. “I’m meeting all this week and next week to make a deal to go back and get The Atlantic Club. I’m not quitting. I’ll do whatever it takes to make this deal.”
Young also lamented trying to close such a big deal in too short of time, saying he had only given himself 60 days to conclude the purchase.
This is not the first time an effort to convert the former casino hotel property into a family-friendly water park and hotel has been scuttled.
In July 2015 Endeavor Property Group (Endeavor AC) announced plans for a $165 million investment as one of two new waterparks planned for the city. The Atlantic Club Boardwalk waterpark would have covered over 80,000 square feet and the plan included a host of other amenities, but no casino. That deal fell through in January 2016 even though it had the backing of the Casino Reinvestment Development Authority (CRDA).
The Atlantic Club was the first of four casinos to close in 2014 idling about 1,600 workers. In an effort to reduce competition for the remaining casinos in the city Ceasars and Tropicana acquired the building with players database and gaming machines going to Carl Icahn’s Tropicana.