The former Atlantic Club Casino Hotel's owners recently disclosed that the resort's condition has worsened faster than it was expected since its January 2014 closure. It is located on the Boardwalk's south end and hasn't hosted guests for a long period.
Its new owners are planning to develop a complex property comprising a boutique cozy hotel and luxury condominiums. TJM Properties, a Florida real estate firm, decided to sell the Atlantic Club in the fall of 2019 to Colosseo Development Group. It had paid $13.5 million for the property in May 2015 when it purchased it from Caesars Entertainment.
Caesars didn't run the Atlantic Club, but it bought it for $23.4 million after Tropicana Entertainment, its initial owner, went bankrupt. Tropicana managed the player database, table games, and physical slot machines, and Caesars managed its acreage and physical structure.
Tropicana Entertainment paid a large portion of the $23.4 million for the player database. The casino mostly served local players and referred to itself as "A casino for the rest of us."
The Atlantic Club initially operated under a few brands like Bally's Grand Atlantic City Hilton, The Grand, and the Golden Nugget after Caesars bought it. Still, it later decided to let it go as it predicted that few other local casinos, especially Harrah's and Caesars, would hinder its growth.
The gaming operator closed the Showboat property in August 2014 and the Revel and Trump Plaza the next month. The Trump Taj Mahal was Atlantic City's fifth casino to shut down in October 2016.
The Reviving Atlantic City Gaming Industry
Many people have been concerned about Atlantic City's economic state. Yet, Colosseo is optimistic that they will resurrect the Atlantic Club. Rocco Sebastiani leads the commercial and residential New York-based real estate developer.
Its officials stated shortly after acquiring the former casino that it would renovate and relaunch it as an 800-room non-gaming hotel. Sebastiani inspected the 3400 Pacific Avenue property and discovered that its structure is dilapidated.
He informed ENR New York that they initially planned to upgrade the property's fixtures and furniture. But they were shocked when they went in and found all systems are dysfunctional.
The former Atlantic Club's façade is falling on nearby streets and the Boardwalk. Still, prolonged neglect and water intrusion have destroyed its interior. This has prompted Colosseo to start repairing and improving the property to meet the regional code and prepare it for a huge renovation.
Colosseo wants to transform Atlantic Club into a "condo-tel," a mixed-use complex. Still, it will convert the two towers into a residential condo complex and a boutique hotel.
The group will build over 130 condos of 1,800 square feet to 3,000 square feet in the 23-story South Tower and 330 hotel rooms in the North Tower. Most of them will offer visitors a clear view of the Atlantic Ocean and Atlantic City.