The former Revel Casino Hotel in Atlantic City, now known as Ocean Resort Casino — Courtesy: AC OCEAN WALK
By Joshua Burd
An investment group has paid $200 million to acquire the former Revel Casino Hotel in Atlantic City, with plans to renovate and reopen the nearly six-year-old property this summer.
The buyer, AC OCEAN WALK, is a group led by Denver-based Integrated Properties. The firm on Monday announced its acquisition of the casino from Florida-based developer Glenn Straub, who paid $82 million in 2015 to buy the property out of its second bankruptcy.
The glitzy, 47-story casino and hotel opened in 2012 as a result of a $2.4 billion project that aimed to revitalize the struggling resort town and serve as a monument along the city’s boardwalk. But the massive resort entered a gaming market that had been decimated by competition from other states and never seemed to connect with Atlantic City patrons.
AC OCEAN WALK on Monday detailed plans to rebrand the 1,400-room property as Ocean Resort Casino, while creating an estimated 2,500 to 3,000 jobs. The new owner also touted the recent string of good news and new investment in Atlantic City, including Hard Rock International’s plan to transform and reopen the former Trump Taj Mahal, plus a new Stockton University satellite campus and headquarters for South Jersey Industries.
“The former Revel property opened at a time when Atlantic City was still in economic recovery and operationally it just did not cater to the customer base for this destination,” said Bruce Deifik, chairman of AC OCEAN WALK. “However, given the extraordinary quality and investment made during its development, the new ‘Ocean’ will represent one of the finest hotel, casino properties in existence today in an improving market that has demonstrated strength and resilience.”
The new owner’s plans for the 6.4 million-square-foot property include 138,000 square feet of gaming space, featuring 100 table games, 2,200 slot machines and a sports book, according to a news release. Ocean Resort Casino will maintain the 165,000 square feet in meeting and convention space, as well as the 5,700-seat concert hall with space for potential future expansion.
The company has submitted a casino license application with the state Division of Gaming Enforcement, according to The Press of Atlantic City. Deifik also said the firm is “working to bring back some of the restaurants that were successful at the property” and is creating “specialized new venues including a top Asian noodle bar and a high-end players club.”
He also pointed to the fact that the Supreme Court is now considering whether to overturn the federal restrictions on sports betting, noting that “we foresee a great opportunity to bring a state-of-the-art sports book to a city which caters to a large and diverse sports market.”
Deifik, whose firm is the principal owner and managing partner of AC OCEAN WALK, credited banking giant JP Morgan for its role in the transaction, which was preceded by an “eight-month journey.” His firm’s interest in the property had been rumored for months, while Straub had spent more than two years clashing with regulators and touting his plans to reopen the property.
“On a personal note, this is a dream come true,” Deifik said. “Without the support of my family, who saw my vision and belief in Atlantic City as a market in resurgence, today would never have happened and therefore, I am truly grateful to them.”
