I figured that Trump Plaza would be sold sometime soon so when I saw that it was sold yesterday I wasn’t too surprised. Then I saw that it was sold for only $20 million and I shook my head in disbelief for a minute. Trump Plaza has a great location in the center of the Atlantic City boardwalk. That disbelief only lasted a minute though.
The sale price was also consistent with the fire-sale prices casinos have been going for lately in Atlantic City. Resorts Casino Hotel sold for $31.5 million in Dec. 2010. Trump Marina Hotel Casino fetched $38 million when it was sold in May 2011 and became the Golden Nugget.
Trump Plaza has less than 1,000 rooms and is one of the smaller casinos in Atlantic City. The property is very narrow and blocked on all sides so there’s little, if any, room for expansion. Plus the property still wreaks of 1980′s Donald Trump and needs a lot of renovation to look modern.
The $20 million price tag makes sense when you look at the other recent sales. There must be investment made into cleaning up Trump Plaza and there are few rooms and a small gaming space to make money. The property could also use some kind of focus or theme. There’s really no vibe besides old 1980′s casino.
Atlantic City is falling apart at it’s seams and with Revel possibly preparing to file for bankruptcy the end of the downturn isn’t near. Atlantic City Club should be sold next. With the prices going so low it’s doubtful that Caesars Entertainment (Ballys, Caesars, Showboat, Harrah’s Resort) will bother selling any of their properties in the near future. So there’s that.
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