The buyer is LA-based Colony Capital, headed by maverick investor Tom Barrack. The seller is Sun International, a Bahamas-based company operated by South African magnate Sol Kerzner, who bought the casino-hotel from entertainer Merv Griffin a number of years ago.
As part of the deal, Colony Capital will retain an option to buy a piece of land next to the development for $40 million. The transaction is expected to close early next year.
Much like the Blackjack players who circle its card tables, Resorts International development has had its share of both cold and hot streaks. The first casino to open in Atlantic City when New Jersey gambling was legalized in the 1970s, it did well initially but then fell on hard times as competition along the Boardwalk grew. Its fortunes weren't helped by the long recession that gripped the entire Northeast a decade ago.
Entertainment mogul Merv Griffin bought the hotel a number of years ago and enjoyed some success before selling to Sun International. However, Sun's record of ownership has been marked with licensing and financial problems.
Colony Capital, though best known for its ownership of several Southern California office buildings, also owns the Harveys Casino Resorts group. It is also in the process of buying Glendale-based Pinnacle Entertainment Inc.
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