Trump Plaza sold for just $20 million
Cost over $200 million to build in 1984, now sold for only $20 million
Trump Plaza, the Boardwalk centerpiece of Donald Trump’s one-time Atlantic City empire, was sold Thursday to a California company for $20 million in the cheapest of a series of bargain-basement deals for the struggling New Jersey seaside resort.
The Meruelo Group who purchased the Plaza plans to close the deal by May 31. It is the lowest price ever paid for a casino in Atlantic City.
It was not clear at present what the new casino would be called.
The Meruelo Group, which counts construction, engineering, real estate, food service and private equity among its businesses, also owns the Grand Sierra Resort and casino in Reno.
“Trump Plaza is one of the world’s most recognized gaming resort destinations and is an integral part of the Atlantic City landscape,” said Alex Meruelo, founder and CEO of the Meruelo Group. “Our company is thrilled to have the opportunity to become the new owners of this property, and we are firmly committed toward establishing it as one of the elite destinations in Atlantic City and on the East Coast.”
Robert Griffin, CEO of Trump Entertainment Resorts, said the deal shows the Atlantic City market is still attractive to investors, given the right price.
“This is good news for the city, for the state, and for the Plaza,” he said. “There is still considerable interest in this market.”
Trump Plaza has about 900 employees.
Trump Plaza, which cost $210 million to build, opened in May 1984 as one of Donald Trump’s pet projects. The real estate mogul has since limited his dealings in Atlantic City.
The sale leaves the company he once ran, Trump Entertainment Resorts, with just one casino, the Trump Taj Mahal Casino Resort.
Griffin also said his company would consider selling the Trump Taj Mahal, if the price were right. He said there have been no talks with potential buyers for the Taj thus far. The company sold the former Trump Marina to a Texas company that rebranded it as the new Golden Nugget in 2011.
“If someone comes in and makes an offer that makes sense, our board has shown that we are willing to do the right thing for our shareholders,” Griffin said. “Blow me away with an offer, and I’ll be happy to take it to the board.”
Trump Entertainment Resorts plans to use proceeds from the Plaza sale to pay down its debt, which will be about $270 million after the sale, Griffin said.
Trump Plaza is one of the first casinos many visitors to Atlantic City see. It sits at the foot of the Atlantic City Expressway on the Boardwalk, directly next to Boardwalk Hall, and sometimes markets itself as being in “the center of it all.”
Trump Plaza now the worst performing casino in Atlantic City
It stands 39 stories over the Boardwalk, and has 906 hotel rooms, ranking it among the smallest of the city’s 12 casinos, the most successful of which have 2,000 or more rooms apiece.
Trump Plaza has struggled mightily in recent years, despite its central location. It has become the worst-performing casino in town in terms of casino revenue. Last month, Trump Plaza took in less than $4.9 million, a decline of more than 40 percent from a year ago.
For all of last year, Trump Plaza won just over $102 million from gamblers — or about what the city’s top casino, the Borgata Hotel Casino, wins in a good two months. Trump Plaza’s winnings for 2012 were down 25% from 2011.
