AC: Revel Close...Sale...Fail
Quote: vendman1OK well that I can agree with whole heartedly. They are scum.
No comment on the Kennedy conspiracy? I was hoping for a monumental derail...I'm feeling naughty this morning.
Mama spank. Lol...
I would think CET would be happy to derail this thing and not at all surprised if they didn't at least try.
"unlikely" but who knows , given the history & court order favoring tenants?
" Shaun Martin, Revel's chief restructuring officer, suggested in court testimony Tuesday that the time frame for a sale is short, perhaps four months. He implied that if a sale didn't happen by then, it would fall to a court-appointed trustee to attempt a sale under Chapter 7 of the U.S. Bankruptcy code. Such a sale is not a slam dunk. If Wells Fargo were still around, it would either have to pay the costs of the Chapter 7 sale or allow another lender to step in front of it in the line of creditors. The trustee could also determine that its not worth trying to sell Revel because there wouldn't be enough benefit to creditors. If secured creditors didn't want the building, the property could be abandoned, eventually going to Atlantic City for unpaid property taxes."
Read more at http://www.philly.com/philly/news/breaking/20150221_What_happens_next_with_Revel_.html#kCe0iX2MJBCTjuH9.99
http://www.therepublic.com/view/story/4ca17e15c70e4491892a9a09f0527215/US--Revel-Sale
Quote: JackStraw8004Genius, he get's property for lower price. He will probably use some of it to pay off nightclub. Offer them $8-10 million to walk away.
Not sure of that, assuming Revel kept the fee for failure to close, he is basically paying the same thing and the Power Plant issue is still there.
From what I've read , it sounds like he's inviting many tenants to resume operations - to help resolve that issue- the $ from the reduced sales price maybe thrown at the power plant problem
"Craig Galle, a lawyer for Mr. Straub, said $72 million had been transferred to Revel on Monday, representing the entire purchase price when combined with a $10 million deposit already held by Revel.
The deal is set to close on March 31, but people familiar with the matter cautioned the situation is still fluid."
Straub also said somewhere else today he's not decided if Revel will have a casino???
http://www.wsj.com/articles/revel-casino-strikes-tentative-deal-with-straub-1424804079
Quote: vendman1Somebody send me an email when it actually opens...with a casino. I'm not holding my breath.
He (Straub) actually said he's not sure if it will have a casino.
Specifically, current plans include a new health center and spa as well as relocating the hotel lobby. Straub had also previously mentioned bringing sporting events to the area as well as building the world's largest waterpark.
I think that they should focus their marketing efforts on old people. You could make the building formerly known as Revel the most opulent assisted living center in the entire world, instead. That place would kill in Phoenix, maybe not so much Atlantic City. It'd be great in the Summer, though, right next to the beach.
It really is a gorgeous property, I mean, that's the kind of place where you can stick some old person you don't feel like dealing with anymore and really not have any trouble looking at yourself in the mirror.
You'd also have a bunch of floors with different activities. Sure, you wouldn't have a casino anymore, but that's no big deal...it's not like any fewer people would be gambling there.
Quote: MprtUSA516Press of AC has a video in which Straub says he is removing those entrance escalators. That's the best idea I've heard so far. Can't believe they were installed in the first place.
Yeah I think lots of people were scared of/put off by the escalators. I actually kind of like them. Certainly it had little to do with the properties demise. There was a perfectly good bank of elevators right around the corner. Not that you could find them or would know that they were there. What the place really needed was about 4 times as much signage. It was really a confusing layout if you didn't know your way around.
Quote: vendman1Yeah I think lots of people were scared of/put off by the escalators. I actually kind of like them. Certainly it had little to do with the properties demise. There was a perfectly good bank of elevators right around the corner. Not that you could find them or would know that they were there. What the place really needed was about 4 times as much signage. It was really a confusing layout if you didn't know your way around.
I think the escalators otherwise ruined a nice atrium area and yeah, people were put off by them. I agree on the confusing part. Forget finding the poker room.
They should ditch the whole drive through entrance that goes almost to the boardwalk. It's such a wasted space. Close that up and bring it to the boardwalk - make that area the main casino. It should be when you walk right in, you are in the casino. Let the overnight guests travel around to the other amenities in the hotel.
Quote: MprtUSA516Press of AC has a video in which Straub says he is removing those entrance escalators. That's the best idea I've heard so far. Can't believe they were installed in the first place.
oh geez: here's the link
Minutes after announcing an $82 million deal to buy Revel Casino-Hotel, Glenn Straub said he had another reason to celebrate: He’d scored one heck of a bargain on a Tuesday night flight out of Atlantic City.“Fifty-four dollars,” he said. “I gotta save money now.”
http://www.pressofatlanticcity.com/news/breaking/revel-wants-million-sale-to-straub/article_273ec53c-bc87-11e4-8f41-97f0aa15be21.html
You're talking about 1,399 spacious rooms, here. At $10,000 a month base rate, you've got revenue of $13,990,000 per month at full occupancy. This is for a property that's not going to be strapped with any debt and might have a more favorable arrangement with ACR Energy Partners LLC than did the Revel.
That's also a base rate, I'm thinking you leave the restaurants in place in kind of a, "Survival of the fittest," sort of thing. For additional $$$ the occupants of the assisted living center can purchase food credits (or have packages that already include them) and the food credits essentially represent 75% of the restaurant's charge for the stuff. The restaurants can be open to the public, though, too. They'd also garner revenue from staff and visitors.
So, you're going to have all kinds of restaurants, pools, throw an entire floor in there for croquet, scheduled beach activities, lounges for the people that can drink. All kinds of different activity floors and rooms, it'll basically be a city within a building. I mean, this is assisted living, so it's not for the terminally ill or anything like that.
You could still book some acts at Ovation Hall, or whatever it's going to be called now. Hell, you could have The Eagles come back, since they're about the same age as the people who would be living in the Assisted Living Facility, anyway. Just acts like that who happen to be still together. There will be public tickets for sale, too, obviously, but residents get that 25% discount.
You would have a couple of convenience stores in the place (and owned by the facility) with ridiculously inflated prices. People could leave to get stuff, but unless it is a medically necessary transport, they'd probably either have to pay to go to the store or call a cab. That is, unless, they get the, "All-Inclusive," package which goes with the best room, whatever that is, and that would be a rate of $40000/month, but would include a dedicated member of staff assigned to you at all times.
Even at 65% occupancy, I'm thinking 10M/month in base revenue, that's before we even get into any packages, restaurant leases, convenience store revenues, or any of that other kind of stuff. Assuming a few people get the absolute best suites, I think you're looking at a base of 10 Million Dollars per month. I think you'll probably do about a half million to a million in incidental-type revenue, such as upgraded packages, convenience store revenues, transportation fees and things of that nature. After that, perhaps you make a few hundred thousand on things that are open to the public, or you could even rent out Ovation Hall to conferences, and things of that nature.
For an extra special activity, you could even hire Bob Dancer to give square-dancing lessons...he's not a stranger to consulting for that property, anyway.
maybe if you throw in square-dancing lessons
Is it comforting to hear the savior of AC is flying coach?
Quote: 7star4now"$10,000 a month base rate"....in AC?
That's for an entire month, for the assisted living facility. It's a very high end assisted living facility.
The national average, per month, in 2012 was $3,550 for assisted-living facilities. Of course, that's nowhere near as high-end as this place is going to be, and they don't have beachfront locations, either.
I don't care if anyone believes me, an assisted living facility would KILL IT in the building formerly known as the Revel.
I could fill it, I swear to God I could. 80%, minimum, you just have to travel around to visit your target market and you have to hit them in February/March that way you can really push that whole Summer beachfront location thing you have going for you. Insurance will pay for many of these people, if not in full, then in part.
Quote: Mission146You guys are obsessed with this casino thing. Been there, tried that.
You're talking about 1,399 spacious rooms, here. At $10,000 a month base rate, you've got revenue of $13,990,000 per month at full occupancy. This is for a property that's not going to be strapped with any debt and might have a more favorable arrangement with ACR Energy Partners LLC than did the Revel.
That's also a base rate, I'm thinking you leave the restaurants in place in kind of a, "Survival of the fittest," sort of thing. For additional $$$ the occupants of the assisted living center can purchase food credits (or have packages that already include them) and the food credits essentially represent 75% of the restaurants charge for the stuff. The restaurants can be open to the public, though, too. They'd also garner revenue from staff and visitors.
So, you're going to have all kinds of restaurants, pools, throw an entire floor in there for croquet, scheduled beach activities, lounges for the people that can drink. All kinds of different activity floors and rooms, it'll basically be a city within a building. I mean, this is assisted living, so it's not for the terminally ill or anything like that.
You could still book some acts at Ovation Hall, or whatever it's going to be called now. Hell, you could have The Eagles come back, since they're about the same age as the people who would be living in the Assisted Living Facility, anyway. Just acts like that who happen to be still together. There will be public tickets for sale, too, obviously, but residents get that 25% discount.
You would have a couple of convenience stores in the place (and owned by the facility) with ridiculously inflated prices. People could leave to get stuff, but unless it is a medically necessary transport, they'd probably either have to pay to go to the store or call a cab. That is, unless, they get the, "All-Inclusive," package which goes with the best room, whatever that is, and that would be a rate of $40000/month, but would include a dedicated member of staff assigned to you at all times.
Even at 65% occupancy, I'm thinking 10M/month in base revenue, that's before we even get into any packages, restaurant leases, convenience store revenues, or any of that other kind of stuff. Assuming a few people get the absolute best suites, I think you're looking at a base of 10 Million Dollars per month. I think you'll probably do about a half million to a million in incidental-type revenue, such as upgraded packages, convenience store revenues, transportation fees and things of that nature. After that, perhaps you make a few hundred thousand on things that are open to the public, or you could even rent out Ovation Hall to conferences, and things of that nature.
For an extra special activity, you could even hire Bob Dancer to give square-dancing lessons...he's not stranger to consulting for that property, anyway.
So, what I'm getting from this is you're creating a land-based cruise ship, with the same clientele...since they're often the ones with the money.
Not a bad idea. He could hire you to run it, too.
Quote: beachbumbabsSo, what I'm getting from this is you're creating a land-based cruise ship, with the same clientele...since they're often the ones with the money.
Not a bad idea. He could hire you to run it, too.
Thanks, and it would be terrific!
It's like being on a cruise ship, but it's an assisted-living facility. They're mainly for people who can be mostly independent (don't need around-the-clock medical care, necessarily) but may have trouble going to the bathroom at night, cooking, cleaning, dressing themselves, shopping or anything along those lines. I suppose people could also live there just because they wanted to, that'd be up to them.
There's this thing called, "Long-Term Care Insurance," and how it works is that the insurance pays for the assisted-living center if you're unable to do multiple, "Activities of daily living." It's pretty sweet. Of course, very few insurance companies are going to approve 100% of the costs for an assisted living center such as this one, but the people with the cheap insurance aren't exactly our target market, either.
So let me get this right, first a high end university for geniuses, then a water park, then an assisted living facility.....tomorrow the world.....
Quote: MrsHeartRNAssisted living facility, WTF!! I can just see all those seniors (and I'm almost there myself) in walkers with tennis balls on the bottom of them on the big Mother F.....ing escalator. The layout just screams assisted living, NOT. That place was hard to navigate and get around for the young and nimble. It will take the residents half a day just to get outside and see the beach and I'm sure those elevators will be crammed. Where are all those people going to eat, at the Mussel Bar? I don't have an issue with the high end assisted living idea but I just can't see it at Revel.
Keep in mind there's not going to be as much traffic in those elevators as there was when the place operated as a casino, not that there was enough traffic then, but there would still be less. If possible, you'd also have a set of keycard elevators so that they are dedicated to the residents/staff of the facility only.
As far as where they are to eat is concerned, again, the restaurants will all either survive or perish on their own merits. I have no doubt that the property will fail to support in excess of ten restaurants, so I think you'd end up with something closer to five, or so.
Quote: Mission146Thanks, and it would be terrific!
It's like being on a cruise ship, but it's an assisted-living facility. They're mainly for people who can be mostly independent (don't need around-the-clock medical care, necessarily) but may have trouble going to the bathroom at night, cooking, cleaning, dressing themselves, shopping or anything along those lines. I suppose people could also live there just because they wanted to, that'd be up to them.
There's this thing called, "Long-Term Care Insurance," and how it works is that the insurance pays for the assisted-living center if you're unable to do multiple, "Activities of daily living." It's pretty sweet. Of course, very few insurance companies are going to approve 100% of the costs for an assisted living center such as this one, but the people with the cheap insurance aren't exactly our target market, either.
What happens when they start losing residents who wander outside of the Revel Nursing Home to gamble? Even a Revel Nursing Home has to have a casino. Old people love to gamble.
Quote: sodawaterWhat happens when they start losing residents who wander outside of the Revel Nursing Home to gamble? Even a Revel Nursing Home has to have a casino. Old people love to gamble.
Run it prison style, where they can gamble favors. If Old Man Murray wants to eat in the steakhouse, he's gotta throw down spa rights against Grandpa Joe in a game of gin. (Incidentally, I feel somewhat dirty saying that, having read that fascinating post about how prison gambling actually works.)
Quote: sodawaterWhat happens when they start losing residents who wander outside of the Revel Nursing Home to gamble? Even a Revel Nursing Home has to have a casino. Old people love to gamble.
It's NOT a nursing home, it's an assisted living center.
I don't really see the problem with them gambling elsewhere, many current assisted living facilities have buses that go to nearby casinos one or two days a week as it is now. I also don't think you would, "Lose," residents from the assisted living facility. These are people who need help with day-to-day activities, mostly for purely physical reasons, so we're not dealing with Alzheimer's patients who are going to end up strolling aimlessly and hopelessly around Atlantic City like a shoe or thimble on a Monopoly board.
I mean, it would have to be determined if a casino could be independently profitable, if it can legally be housed in the same location as an assisted living facility, and whether the presence of a casino would be considered a detriment to the greater purpose of being an assisted living facility.
Personally, I think the existence of a casino would be detrimental to my plan given the limited current gaming market for Atlantic City and increasing competition in neighboring states. Further, you'd have to determine how many rooms you're going to allocate to casino purposes and how many would be for assisted living purposes.
However, I ultimately don't believe (and I could be wrong) that there'd be any legal way to house both things in the same location. With that said, I tend to stand behind my assisted living facility idea.
However,
Quote: Mission146strolling aimlessly and hopelessly around Atlantic City like a shoe or thimble on a Monopoly board.
Literally LOL @ this! Mind if I co-opt it for my sig line?
http://abcnews.go.com/US/wireStory/3rd-time-charm-sale-revel-casino-29374063
Quote: JackStraw8004So the same people who had overpriced nightclubs and restaurants could reopen again. In effect this would be Revel II, nothing would change. It will still lose money.
The whole aura of the place really sucked and it probably will suck once again if re-opened. They tried to top The Borgata, didn't want to comp form the beginning and they wound up with a Tiffany's style jewelry store in a flea market setting. Right place but about 20 years or so too late. Story done.
Seriously, are we playing how-low-can-you-go now?
Atlantic City does not need this guy. Sorry. I think the building would be better off torn down.
http://www.wsj.com/articles/ruling-limits-options-for-atlantic-citys-revel-casino-1426543737
Quote: MprtUSA516Straub: “We don’t negotiate.”
Atlantic City does not need this guy. Sorry. I think the building would be better off torn down.
http://www.wsj.com/articles/ruling-limits-options-for-atlantic-citys-revel-casino-1426543737
wsj paywall is stupid.
just copy/paste the article title in google, and google lets u read the entire article free.
anyway, isn't the fight w/the tenants a moot point?
the generation plant built just to power revel declared bankruptcy. they're not being paid and have no $ for operating costs.
once power shuts down, mold settles in and you have to tear down the building.
both tenants and revel loses.
Quote: MprtUSA516Straub: “We don’t negotiate.”
Atlantic City does not need this guy. Sorry. I think the building would be better off torn down.
http://www.wsj.com/articles/ruling-limits-options-for-atlantic-citys-revel-casino-1426543737
For Revel fans, perhaps, a small victory.... if Straub got his hands on Revel it would get even more bizarre:
"Straub took the stand at the request of Warren Martin, the attorney who represents tenants who oppose the sale to Straub. His rambling explanation of his decision-making process only served to underscore the uncertainty."I run a management team for my daughter, for the foundation," he said, his eyes mostly squeezed shut as a courtroom full of attorneys watched."I just don't do economics," Straub said. "I do things for what's right."....
(An attorney for Los Angeles developer Izek Shomof) characterized Straub's testimony as "incomprehensible" and also said Straub had called his client offering to transfer his bid"
Read more at http://www.philly.com/philly/news/local/20150313_Judge_sets_Friday_for_next_ruling_along_the_Revel_road.html#dbquG2FLIGQtSkWb.99
Quote: vendman1This just makes me more sure of what I said before. I think this bankruptcy judge is part of the problem. She is waffling on everything. NOW there are jurisdictional issues? WTF are you serious. This didn't come up before? How is that possible? She is going to set a deadline to close the deal (maybe) but will allow other bids? Again WTF there have been multiple bid submitting deadlines. Where were these other buyers before? Someone need to learn the meaning of the word deadline. I don't know why this bothers me so much. But it's such a cluster f**k. I guess I shouldn't be surprised. I still say it's gotta be worth something. it's a beautiful facility that cost $2.4 billion freakin dollars to build. Sigh.
My sentiments exactly Vendman. Something's up with this Judge, I think she's just as crazy and inept as Staub. Just sell the damn thing, as you said, it's such a waste of a beautiful facility
Quote: ACMamaI'm a retired attorney and I've done a lot of commercial/corporate bankruptcy work. And I have no friggin idea what is going on here. I'm half tempted to go watch this proceeding in person just to see the clown cars. Something just doesn't add up here.
I'm glad it's not just me. I've been involved in a couple business bankruptcy proceedings and they are usually much more straight forward than this. I realize this case is fairly complicated, but it's not that complicated. Thousands of companies go bankrupt every year in the US. It shouldn't be this hard.
http://www.nj.com/atlantic/index.ssf/2015/03/revel_ac_says_no_one_else_has_come_forward_to_bid.html
Quote: JackStraw8004The real crazy person is Icahn who gave the Taj $80 million to stay open. If no one wants the Revel why did this guy commit money to the Taj.
He could've closed Taj and bought Revel with the 80 million
Quote: JackStraw8004The real crazy person is Icahn who gave the Taj $80 million to stay open. If no one wants the Revel why did this guy commit money to the Taj.
This is an interesting point. Say what you want about Carl Ichan. But he didn't get that successful being stupid or reckless with money. It makes me wonder...if he, and others looked at the Revel with it's out of control overhead, stupid utility deal, and issues with the tenants etc etc, and decided they could never make money there. Even at the bargain basement price of $80-$100 million. I know for a fact there were people affiliated with CET in AC who were convinced that the whole reason they shut down Showboat was to buy Revel and stay within the licensing regulations. But that didn't happen either. Now obviously CET has other issues; but I'm sure they could have scraped together a credible bid to buy it, if they decided it was worth buying. They didn't. Interestingly no one else in the casino business did either. That says bad things about AC as a market...and the Revel as a business. I'm starting to think this ends up in Chapter 7 liquidation.
