Pinnacle is finally attempting to put their attempt at an Atlantic City property in their past.  Pinnacle put the land next to Bally’s up for sale last week.

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.

Ever want to buy 19 acres of dirt?  It’s by the ocean…

Almost 4 years after buying and imploding Sands casino in Atlantic City, Pinnacle Entertainment gave up on their plans to build a new casino next to Bally’s.

Pinnacle owns 19 acres of oceanfront property between Indiana and Kentucky avenues in the heart of the Boardwalk. Pinnacle executives did not disclose how much the company will ask for the land. The company bought the Sands and its surrounding property for $270 million in 2006, but wrote down the land by $160 million in the fourth quarter of 2009 to reflect falling real estate values.

Pinnacle cited Atlantic City’s prolonged gaming slump, fierce competition from casinos in surrounding states and the fragile economy as reasons for killing a project that looked less and less likely after it was put on “indefinite hold” in late 2008.

“Atlantic City is no longer a good strategic fit for us, given the current economic outlook, the state of the financing markets and the major capital commitment that would be required,” Pinnacle spokeswoman Pauline Yoshihashi said. “It’s an attractive and well-located site, and may be a better strategic fit for another company.”

No surprises here, but it’s disappointing to look back at the potential of new casinos in Atlantic City just a few years ago and now Atlantic City seems as if it’s gambling economy is hanging by a thread.  Instead of looking back in sadness let’s watch the implosion of Sands and remember the potential of a few years ago.