The casino operator will formally put 19.5 acres of land on sale this week and it will likely sell at more than a 70% discount to its $340 million acquisition price, says Tom Kirschbraun, a broker at Jones Lang LaSalle who is representing Pinnacle. “The decision is to get this property off the books,” said Mr. Kirschbraun, anticipating that other casino operators, foreign investors and hedge funds would be attracted to the land.
This is a lot of land and a great location. I’m not sure that I would bet on business in Atlantic City ever getting back to its peak 5 years ago, but if I can see an investor with a surplus of cash laying around purchasing the property as an investment. It could be a high risk – high reward scenario.
- Photo: Wall Street Journal