The sellers of the properties are affiliates of financier Carl Icahn, the primary affiliate being Atlantic Coast Entertainment Holdings Inc. (ACE Hi). The major stockholder of ACE Hi, AREP Sands Holding LLC, owns approximately 58% of the outstanding stock of ACE Hi. AREP Sands itself is a wholly owned subsidiary of Icahn's American Real Estate Holdings LP.

And Pinnacle, which develops upscale mixed-use properties with or without casinos, plans to redevelop the site with an entirely new casino/hotel property. That plan calls for the 26-year-old Sands, one of the city's smaller hotel/casino properties with 600 guest rooms, to be shuttered and torn down. While the deal isn't expected to close until year's end, the agreement calls for the Sands to be closed for good within 70 days, or approximately mid-November.

"While we regret the necessity of closing the Sands, we look forward to working with gaming regulators, state and local authorities to create more jobs, tax revenues and other benefits," says Daniel R. Lee, Pinnacle's chairman/CEO. "In connection with our longstanding interest in Atlantic City, we submitted our initial license application in New Jersey several months ago. The regulatory investigation is ongoing."