The Florida-based developer is now the only bidder, and wants to use his position to get the Revel at a discount price.
Florida real estate developer Glenn Straub emerged as the leading bidder for the Revel Casino property in Atlantic City after Brookfield Asset Management backed out of the running.
The ball is in Straub’s court, and he reportedly is taking advantage of his position by reducing his bid. He originally offered up $95.4 billion when the auction began earlier this year, a number which was subsequently topped by Brookfield’s $110 billion.
Now that Brookfield is out, New Jersey gambling news outlets are reporting that Straub now wants the property for $87 billion. His original bid is legally binding, but Straub is arguing that the original auction was not run on a fair and transparent basis.
A judgment in his favor would reopen the bidding and allow him to legally submit a bid at his preferred lower rate.
Revel project to result in massive loss
The collapse of the Revel has provided the grandest example of Atlantic City’s rapid decline. The casino opened in 2012 after being built at a cost of $2.4 billion.
While touted as the city’s premier luxury casino, the Revel never turned in a monthly profit. Ownership was forced to declare bankruptcy in January, 2013, and while the casino reopened later that year, it shuttered its doors for good in 2014.