Glenn Straub Finally Approved to Buy Revel Casino Hotel
Judge Gloria Burns has approved the sale of Revel Casino Hotel, to Florida developer Glenn Straub. The amount of the sale is for $82 million, approximately 96% less than the $2.4 billion build cost. This decision puts an end to almost ten months of legal battles. The big legal battle has been whether or not, the former business tenants can stay. Straub got the approval after dropping his demand for a “free and clear encumbrances” sale. Judge Burns stated that the issue with the tenants, be dealt with outside bankruptcy court. The closing of the sale will take place April 6th.
During the hearing, the former tenants lawyers and the utility provider, appealed to Judge Burns for more time. The reasoning was for a potential deal of $88 million, to be completed. The potential deal was will a couple of seasoned real estate executives. The casinos main lender Wells Fargo Bank, and Revel said there was already enough time for any deals to be reached. The investment banker to Revel, testified he was in contact recently with 18 possible bidders. He also stated that “the only real offer”, is from Glenn Straub.
As of right now, Straub plans to end any leases and contracts that exist with that property. This includes the power plant, and former tenants. ACR Energy Partners LLC, is the only hot water and electricity supplier to the casino. Prior purchase deals have fell through, due to the disputes with the power company, and former tenants.
Other bidders, nor Straub were able to agree with terms with ACR Energy Partners LLC. With the contract as is exists, court papers show average monthly payments to the power company, at $3 million. Straub stated that while looking for a permanent solution, temporary boilers and generators will be brought in. this will be to prevent mold from damaging the property.
Straub plans to reconfigure the entrance and lobby. Also planned, is spending $300 million for a second tower to be built at the site. Straub stated, “This is a resort, and it’s not going to be a small resort.”