Sunday, March 29th11.2°C
25490
24921

Trump Plaza thumped on open market

Trump Plaza, the Boardwalk centerpiece of Donald Trump's one-time Atlantic City empire, was sold Thursday to a California company for $20 million in the cheapest of a series of bargain-basement deals for distressed gambling halls in the struggling New Jersey seaside resort.

The Meruelo Group of Downey, Calif., plans to close the deal by May 31. It is the lowest price ever paid for a casino in Atlantic City.

The company, which counts construction, engineering, real estate, food service and private equity among its businesses, also owns the Grand Sierra Resort and casino in Reno, Nev.

Trump Plaza, which cost $210 million to build, opened in May 1984 as one of Donald Trump's pet projects. The real estate mogul has since limited his dealings in Atlantic City.

The sale leaves the company he once ran, Trump Entertainment Resorts, with just one casino, the Trump Taj Mahal Casino Resort. The company sold the former Trump Marina to a Texas company that rebranded it as the new Golden Nugget in 2011.

Trump Plaza is one of the first casinos many visitors to Atlantic City see. It sits at the foot of the Atlantic City Expressway on the Boardwalk, directly next to Boardwalk Hall, and sometimes markets itself as being in "the centre of it all."

It stands 39 stories over the Boardwalk, and has 906 hotel rooms, ranking it among the smallest of the city's 12 casinos, the most successful of which have 2,000 or more rooms apiece.

Trump Plaza has struggled mightily in recent years, despite its central location. It has become the worst-performing casino in town in terms of casino revenue. Last month, Trump Plaza took in less than $4.9 million, a decline of more than 40 per cent from a year ago.

For all of last year, Trump Plaza won just over $102 million from gamblers - or about what the city's top casino, the Borgata Hotel Casino & Spa, wins in a good two months. Trump Plaza's winnings for 2012 were down 25 per cent from 2011.

For the third quarter of last year, the most recent period for which statistics are available, Trump Plaza had a $2.35 million gross operating profit, down nearly 34 per cent from the same period in 2011.

The sale price was also consistent with the fire-sale prices casinos have been going for lately in Atlantic City. Resorts Casino Hotel sold for $31.5 million in Dec. 2010. Trump Marina Hotel Casino fetched $38 million when it was sold in May 2011 and became the Golden Nugget.

Billionaire Carl Icahn bought the Tropicana Casino and resort out of bankruptcy court for $200 million worth of deeply discounted debt; the casino originally went on the market for about $1 billion when its former owners lost their casino license.

And The Atlantic City Club Casino Hotel is being bought by the parent company of the PokerStars website site for an as-yet undisclosed sum, which is expected to be a fraction of the $513 million its owners paid for it in 2005.

___

Wayne Parry can be reached at http://twitter.com/WayneParryAC

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7926-0.0003
Gold1196.30-8.80
Oil48.87-3.00
Lumber282.60-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 



25596

FEATURED Property
2178352402 - 1495 Graham Street
2 bedrooms 2 baths
$305,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_





25482


Member of BC Press Council


25322