AC: Revel Close...Sale...Fail
March 22nd, 2015 at 5:24:17 PM
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Quote: vendman1This 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.
I pretty much agree 100% about Revel. Just way to much overhead to turn a reasonable profit I.M.H.O. Those who buy and sell casinos would seem to be of the same opinion, otherwise someone would have scooped Revel up at 5 cents on the dollar.
Revel has failed and IMHO will continue to fail if/when it reopens.
High overhead costs, falling Atlantic City casino revenue, utterly ridicules lay out not to mention much of the area is either deserted or blighted.
March 22nd, 2015 at 6:34:19 PM
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I don't understand this tenant thing. If a company goes bankrupt, well it sucks for you, even if you had a 100 year lease, it's broken. That was a chance these high end restaurants and franchisees took when they bought in. If there was a Starbucks in a Target and Target went bankrupt and closed and a Home Depot opened in it's place, is Starbucks going to take Home Deport to court to honor Targets' lease with them?
You only go around once, but if you play your cards right, once is enough.”
¯ Francis Albert
March 22nd, 2015 at 6:46:49 PM
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A university is opening within 100 ft of "revel" this summer. Anywhere else on earth this would be a huge positive. Why not AC?
March 22nd, 2015 at 7:03:22 PM
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I am not an attorney, nor do I play one on T.V. But it would seem that there is either something in the original leases that allows these businesses to remain in the event of a sale or bankruptcy. Or there is no language in the leases about the disposition of these entities so it is assumed that they remain.
Straub wanted Hardrock to run the casino end. Along with Hardrock comes a nightclub. I think they would want to run what was a very successful night club at Revel. H.Q. see's this differently, and the other businesses that operated in Revel will be forced to accept whatever deal is worked out with H.Q.
Straub wanted Hardrock to run the casino end. Along with Hardrock comes a nightclub. I think they would want to run what was a very successful night club at Revel. H.Q. see's this differently, and the other businesses that operated in Revel will be forced to accept whatever deal is worked out with H.Q.
March 22nd, 2015 at 7:22:40 PM
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Without seeing the leases of the tenants it would be impossible to say. But obviously even legal professionals are disagreeing on the status of Revels tenants. Needless to say it is complicating the sale greatly. I agree with what another poster said here. If you wrote a book on how to f**k up a bankruptcy sale, I think it would look a lot like what is happening with Revel.
March 22nd, 2015 at 7:34:30 PM
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Not to fret. The fungus among us, especially with the spring rains coming, will take care of pounding in the final nail.Quote: vendman1Without seeing the leases of the tenants it would be impossible to say. But obviously even legal professionals are disagreeing on the status of Revels tenants. Needless to say it is complicating the sale greatly. I agree with what another poster said here. If you wrote a book on how to f**k up a bankruptcy sale, I think it would look a lot like what is happening with Revel.
March 24th, 2015 at 3:54:57 PM
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Quote: IntheknowA university is opening within 100 ft of "revel" this summer. Anywhere else on earth this would be a huge positive. Why not AC?
I spoke to soon. Appears Stockton is being sued or something whole deal in jeopardy. Only in AC.
March 24th, 2015 at 9:43:57 PM
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There's something bigger happening here. I have no clue to what it is, but these deals can't get any worse. Caesars sells Showboat with a no casino clause. Now Trump says it must be a casino. Stockton gets screwed out of $18 mil . They have a snowball in hell's chance of getting that money back from Caesars. On the Revel front, their mystery ' sophisticated ' buyer ran back to L A over the power plant. And for some reason Straub still wants it, lol. I say screw Caesars and Trump , then eminent domain Showboat and sell it to Stockton for a dollar. Revel will have to sit and rot unless the leases are terminated and the power plant goes with it .
March 24th, 2015 at 10:26:27 PM
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Quote: boobertThere's something bigger happening here. I have no clue to what it is, but these deals can't get any worse..
The lawyers are being paid. Most likely in advance. Have to be. Nothing else explains it all.
March 25th, 2015 at 4:57:54 AM
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Quote: NokTangThe lawyers are being paid. Most likely in advance. Have to be. Nothing else explains it all.
Of course the lawyers are getting paid. That was never in doubt. Here is my official Revel prediction. None of these offers go through as is. Bankruptcy judge (who also looks incompetent) is forced to schedule a schedule 7 (liquidation) auction. Someone buys it for 60 mil or so. But is now free of the power plant fiasco and the previous tenants. Then, and only then, is there a chance this reopens.
March 25th, 2015 at 6:31:15 AM
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Stockton's lawyers screwed up big time IF what I am reading is true. The "agreement" between Caesars and Trump that the Showboat property would have to remain a casino should have been discoverable during the due diligence period UNLESS it was somehow concealed, in which case Caesars would appear to have committed a fraud in selling to Stockton. This entire matter is one big puzzle to me, as is the Revel sale. There are things going on here which indicate a huge can of worms somewhere. Fiasco is indeed the right word for this. Unbelievable.
I give this post an hour. Tee Hee!
March 25th, 2015 at 8:11:50 AM
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I was under the impression that CET only sold Showboat if it WASN'T going to be operated as a casino. CET wanted to increase revenue at their remaining casino's and having another casino in Showboats' place wouldn't help achieve that goal.
But then again, you know what happens when you assume...you make an ass of u and me....
http://philadelphia.cbslocal.com/2014/05/08/caesars-ceo-too-many-casinos-in-ac-closures-needed/
But then again, you know what happens when you assume...you make an ass of u and me....
http://philadelphia.cbslocal.com/2014/05/08/caesars-ceo-too-many-casinos-in-ac-closures-needed/
You only go around once, but if you play your cards right, once is enough.”
¯ Francis Albert
March 31st, 2015 at 5:03:50 PM
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and the saga continues.......
http://finance.yahoo.com/news/tenants-rival-bidder-emerges-shuttered-204401198.html
http://finance.yahoo.com/news/tenants-rival-bidder-emerges-shuttered-204401198.html
You only go around once, but if you play your cards right, once is enough.”
¯ Francis Albert
April 2nd, 2015 at 4:15:16 PM
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Several sources are saying the Revel has been sold to Glenn Straub and will close on Friday.
April 2nd, 2015 at 4:32:21 PM
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Press is also stating Straub lawyer says Showboat deal will be done by tomorrow.
April 2nd, 2015 at 4:32:34 PM
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Press is also stating Straub lawyer says Showboat deal will be done by tomorrow.
April 2nd, 2015 at 4:57:07 PM
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I am SO confused. Why is Straub buying the Showboat? I thought he was out of that deal. Is he going to run it as a casino? How did he negate the agreement between Caesars and the Taj? What happened to the deal between Showboat and Stockton?
I give this post an hour. Tee Hee!
April 2nd, 2015 at 6:13:18 PM
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So maybe Straub will buy Showboat turn it into his "Genius university" that he talked about before and run Revel as a casino. The graduates of the genius college can get jobs at the Revel. It's a perfect plan, what could possibly go wrong.
April 2nd, 2015 at 6:37:17 PM
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He may want to use Showboat for power to Revel. One long extension cord. I hope he buys up the whole island it sure can't hurt.
April 2nd, 2015 at 7:24:24 PM
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He can steal electricity from public lighting, better than pay off the utility company. There are plenty of homeless shelters around, he'll have a place to go after he'll go broke.
April 2nd, 2015 at 8:10:19 PM
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Quote: vendman1So maybe Straub will buy Showboat turn it into his "Genius university" that he talked about before and run Revel as a casino. The graduates of the genius college can get jobs at the Revel. It's a perfect plan, what could possibly go wrong.
+1!
I give this post an hour. Tee Hee!
April 2nd, 2015 at 9:12:46 PM
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Does anyone know who the people are that own the Revel power plant ? Does DeSanctis have anything to do with it?
April 2nd, 2015 at 9:34:09 PM
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Quote: boobertDoes anyone know who the people are that own the Revel power plant ? Does DeSanctis have anything to do with it?
No to the second question.
I don't recall who the two power companies are, but the ACR (I Think) Energy Partners are a joint venture of two other power companies.
https://wizardofvegas.com/forum/off-topic/gripes/11182-pet-peeves/120/#post815219
April 2nd, 2015 at 9:57:45 PM
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South jersey industries is one entity and marine energy maybe the other. The problem for the owners is Revel is their only customer. The whole deal stunk for Revel from the get go but these guys are getting the shaft in the end, as they should. Everybody wants to rob everyone else even if it means biting off your own face.
This is far from over, sadly for the unemployed.
This is far from over, sadly for the unemployed.
April 3rd, 2015 at 4:37:29 AM
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I'm confused, which it doesn't take much to do so this one is knocking me for a loop.....
The article states:
"Straub said after the hearing he has reached a deal to buy several casinos or former casinos in Atlantic City as part of a $500 million, multi-faceted deal. He said details would be revealed on Saturday, but added, “I’ve already bought them.”"
They didn't say which casino's Straub bought. I know Showboat was sold to Stockton, then is in jeopardy with the casino clause, several casinos? or just 2?
The article states:
"Straub said after the hearing he has reached a deal to buy several casinos or former casinos in Atlantic City as part of a $500 million, multi-faceted deal. He said details would be revealed on Saturday, but added, “I’ve already bought them.”"
They didn't say which casino's Straub bought. I know Showboat was sold to Stockton, then is in jeopardy with the casino clause, several casinos? or just 2?
You only go around once, but if you play your cards right, once is enough.”
¯ Francis Albert
April 3rd, 2015 at 5:13:27 AM
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Quote: boobertDoes anyone know who the people are that own the Revel power plant ? Does DeSanctis have anything to do with it?
The details get really complicated. But the short version is this: ACR energy owns the power plant, which was purpose built to power the Revel. Revel is ACR's only customer. ACR was originally going to try and sell power to other customers, but that doesn't seem to have happened. Revel is NOT hooked into the main power grid. So therefore ACR energy is the only source of power for the Revel. When the Revel got into financial trouble, halfway through construction. One of the ways they finished the deal and got the building completed (sort of), is that they signed an agreement with ACR to pay way above market rates for power, in exchange for ACR absorbing more of the construction costs of the power plant. Which Revel was supposed to do originally. So now we have a situation where anyone who buys Revel is stuck with the crappy power plant deal which according to some estimates I've seen doubles or even triples the energy costs of Revel. Given that Revel is an all glass giant monstrosity of a building. Those energy costs are substantial. The power plant issue, combined with the leases of some of Revel's tenant restaurants and nightclubs, is greatly complicating any potential deal to sell the casino in bankruptcy court. As potential purchases of the casino would like to be free and clear of those encumbrances.
ACR energy on the other hand has millions in unpaid energy bills from Revel and I'm sure will go bankrupt unless they are made whole in some way. To sum up it's a mess.
Kevin DeSanctis has nothing to do with it, to my knowledge.
April 3rd, 2015 at 9:44:21 AM
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Quote: MrsHeartRNI'm confused, which it doesn't take much to do so this one is knocking me for a loop.....
The article states:
"Straub said after the hearing he has reached a deal to buy several casinos or former casinos in Atlantic City as part of a $500 million, multi-faceted deal. He said details would be revealed on Saturday, but added, “I’ve already bought them.”"
They didn't say which casino's Straub bought. I know Showboat was sold to Stockton, then is in jeopardy with the casino clause, several casinos? or just 2?
Possibly Atlantic Club and Trump Plaza? Guess we will see soon enough.
April 3rd, 2015 at 10:31:00 AM
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Straub says 2nd tower will rise from Revel site. 3 year plan to transform city. How much money does this guy have?
April 3rd, 2015 at 1:33:54 PM
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Now they announced that Stockton College and Straub will team up for what they'll call the "Phoenix project" to transform Atlantic City. This could be the biggest urban renewal project of our time or they're making a bomb called Phoenix to blow the whole town to smithereens.
This should get very interesting.
This should get very interesting.
April 3rd, 2015 at 2:25:12 PM
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I'm sorry, but this man sounds like a complete nut job.
I give this post an hour. Tee Hee!
April 3rd, 2015 at 2:30:11 PM
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Quote: ACMamaI'm sorry, but this man sounds like a complete nut job.
Yep. Couldn't agree more. I'll be really surprised if this actually happens. More surprised if it works.
April 3rd, 2015 at 4:15:24 PM
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He's better then any other alternatives, which are none. How cool would it be to see jets landing at Bader Field.
The island is the most underutilized piece of land in the world imho. The possibilities are endless.
The island is the most underutilized piece of land in the world imho. The possibilities are endless.
April 3rd, 2015 at 4:16:03 PM
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Quote: ACMamaI'm sorry, but this man sounds like a complete nut job.
He's not right in the head. I think there is a term for him that I remember from my psych nursing called, Delusions of Grandeur
"often also have an inflated sense of self-esteem, and may hold an obsession with grandiose or extravagant things or actions. Even when they are presented with evidence contradicting their delusions, they will still typically cling to their erroneous beliefs"
You only go around once, but if you play your cards right, once is enough.”
¯ Francis Albert
April 3rd, 2015 at 5:22:45 PM
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I'm a Stockton grad and it's pretty embarrassing that Saatkamp is partnering with this moron.
April 3rd, 2015 at 7:29:23 PM
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Quote: IntheknowHe's better then any other alternatives, which are none. How cool would it be to see jets landing at Bader Field.
The island is the most underutilized piece of land in the world imho. The possibilities are endless.
Well you are right the other options seem to be zero. I really am rooting for them to turn AC around. I just think the numbers don't add up.
April 6th, 2015 at 5:01:18 PM
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If history is any indication, Atlantic City is going to be seeing even more drama with Straub in the mix. Revel will likely deteriorate under his watch too. I give him 2 years till he bails.
http://www.philly.com/philly/business/20150407_Revel_buyer_Straub__A_businessman_with_his_own_point_of_view.html
http://www.philly.com/philly/business/20150407_Revel_buyer_Straub__A_businessman_with_his_own_point_of_view.html
April 6th, 2015 at 5:50:02 PM
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Quote: MprtUSA516If history is any indication, Atlantic City is going to be seeing even more drama with Straub in the mix. Revel will likely deteriorate under his watch too. I give him 2 years till he bails.
http://www.philly.com/philly/business/20150407_Revel_buyer_Straub__A_businessman_with_his_own_point_of_view.html
He bet .04 on the dollar. I hope for success for Straub or at the least dumb
luck.
April 6th, 2015 at 6:47:57 PM
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Seems like a pretty negative article on straub. At the same time, guess you can't blame him. He either makes money or let's it go. Let's just hope his out of the box thinking in AC works. Some things make sense, some don't. Only time will tell. Like the speed ferries from new york it's actually a great idea (getting people to ac from ny and people to come to ac to go to ny easily) , but how realistic is it? If it works he will be talked about as a smart businessman. If not, he will go down as an idiot.
April 8th, 2015 at 8:04:39 AM
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Well after doing some reading on Mr. Straub I'm frankly of mixed mind. Clearly the guy has a history of buying distressed properties at an extreme discount and then running them on a shoestring or reselling to get his money back. Will he put major money into the Revel or Showboat. I doubt it very much. Can he operate Revel at a profit. I also doubt that. Much as I'd like to see Revel and/or the Boat open again, I don't see whats changed in the marketplace to make that a good idea. So we may be back here in a year or two again. Also what the word on Showboat now that Stockton is out of the picture? Obviously CET is not going to want it operated as a casino. Time will tell.
April 9th, 2015 at 3:26:49 PM
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ACR shut off the power to Revel today... Straub working to get generators to restore fire safety systems, air handling, etc...
http://www.nj.com/atlantic/index.ssf/2015/04/revel_goes_dark_energy_supplier_shuts_off_service_to_atlantic_city_hotel_lawyer_says.html
One can easily imagine that he's been anticipating the need for alternate power supply all along...
http://www.nj.com/atlantic/index.ssf/2015/04/revel_goes_dark_energy_supplier_shuts_off_service_to_atlantic_city_hotel_lawyer_says.html
One can easily imagine that he's been anticipating the need for alternate power supply all along...
April 9th, 2015 at 4:10:23 PM
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I don't think Straub has any idea what he's getting into. This state is going to eat him alive.
April 9th, 2015 at 4:40:17 PM
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It would depend on the state of the economy and who will be the next president. So far I see casinos are packed, if the trend continues the Revel can become a gold mine.
April 9th, 2015 at 4:50:11 PM
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Quote: ECoasterACR shut off the power to Revel today... Straub working to get generators to restore fire safety systems, air handling, etc...
http://www.nj.com/atlantic/index.ssf/2015/04/revel_goes_dark_energy_supplier_shuts_off_service_to_atlantic_city_hotel_lawyer_says.html
One can easily imagine that he's been anticipating the need for alternate power supply all along...
https://www.youtube.com/watch?v=BS67LsJwrmY
April 10th, 2015 at 3:45:45 AM
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I hope you are right, I love that place even after all the shenanigans. I have yet to visit a casino that I liked as much as that one.Quote: Dicenor33It would depend on the state of the economy and who will be the next president. So far I see casinos are packed, if the trend continues the Revel can become a gold mine.
♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
April 10th, 2015 at 7:07:38 AM
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With the right management and the right approach Revel should be able to do OK.
Look at Borgata.
Look at Borgata.
"What, me worry?"
April 10th, 2015 at 8:58:43 AM
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Quote: 7star4nowhttps://www.youtube.com/watch?v=BS67LsJwrmY
Good one 7*'s
You only go around once, but if you play your cards right, once is enough.”
¯ Francis Albert
April 10th, 2015 at 9:09:06 AM
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http://www.pressofatlanticcity.com/news/breaking/straub-second-revel-tower-will-rise/article_4aa4da0a-da20-11e4-8684-871ce907c08f.html
Looks like Straub is already working on the second tower, when he doesn't even have power for the first one. Things are being done ass backwards here. He so reminds me of PT Barnum, showman and business man....there's a sucker born every minute approach.
Geesh, I think this guy has ADD, can't stay on target with one thing he's thown out there.
Soory for all the posts today, I'm supposed to be working in my office today.....you see how that's going....lol
Looks like Straub is already working on the second tower, when he doesn't even have power for the first one. Things are being done ass backwards here. He so reminds me of PT Barnum, showman and business man....there's a sucker born every minute approach.
Geesh, I think this guy has ADD, can't stay on target with one thing he's thown out there.
Soory for all the posts today, I'm supposed to be working in my office today.....you see how that's going....lol
You only go around once, but if you play your cards right, once is enough.”
¯ Francis Albert
April 10th, 2015 at 9:39:39 AM
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In the video on the bottom of this page, Straub explains that his idea for the water park was inspired by the need to protect guests from "sharks" & "tides going the wrong way" which they may encounter in the ocean?
As an "Imagineer" , but he does have quite an "imagination".
Hopefully, his geniuses are working frantically to invent the 1st solar powered slot machines right now.
http://www.pressofatlanticcity.com/business/revel-goes-dark/article_8e1bfe28-de42-11e4-8e0a-57c53f0d61d2.html
As an "Imagineer" , but he does have quite an "imagination".
Hopefully, his geniuses are working frantically to invent the 1st solar powered slot machines right now.
http://www.pressofatlanticcity.com/business/revel-goes-dark/article_8e1bfe28-de42-11e4-8e0a-57c53f0d61d2.html
April 10th, 2015 at 9:57:01 AM
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I have a feeling the whole power issue is a negotiating tactic by Straub. The power plant was built for Revel and Revel only. He is hoping perhaps they are forced to sell to him at a greatly reduced cost "no one else has a need for this power plant." This plant not only supplies electricity, it also supplies cold water for air-conditioning and hot water for heat. Yes he can get portable diesel generators but, you need NJ EPA permits for them and they aren't meant to be a long term fix. Revel was built with its power plant, air-conditioning and heat in a separate plant. Even if Straub ran new electric feeder lines to Revel it still leaves Revel lacking heat and air-conditioning. He can either build a new heating/air-conditioning plant "not very likely" or buy and/or negotiate with the existing plant. My guess is Straub will come to some king of agreement with the existing plant. I can't see that he has any choice.
Some people are of the opinion Straub is crazy. Crazy like a fox is more like it. The man is a very shrewd negotiator.
Some people are of the opinion Straub is crazy. Crazy like a fox is more like it. The man is a very shrewd negotiator.
