According to that report, Column Financial, a commercial mortgage subsidiary of Credit Suisse, wants owner Colony Capital IV, an affiliate of Los Angeles-based Colony Capital LLC, to turn over title to the 942-room property. Column is prepared to keep the hotel and gaming complex open and operating while it looks for a new operator.
Requests for comment from both Colony Capital and Column Financial were not immediately returned. A spokesman for the hotel said that because the property is privately owned, they would not discuss financial matters relating to Resorts Atlantic City.
The move to foreclose follows a filing with the Casino Control Commission in November by Resorts indicating that it would not be able to make its mortgage payment that month on a $10-million loan backed by a $360-million mortgage on the property. In that filing, company officials blamed that failure on "the extreme impact" of current economic conditions.
Opened in 1978 as this city's initial hotel/casino property, Resorts Atlantic City at North Carolina Ave. and the Boardwalk remains one of smallest properties here in terms of room count, less than half the size of the Borgata and Harrah's, for example. Colony Capital bought it in 2001 from Kerzner International--formerly Sun International--for what was considered a bargain-basement price of $140 million. The hotel was expanded to its current 942 rooms in 2005 with the addition of a 400-room, 27-story tower.
Colony Capital, through an affiliate, also owns the Atlantic City Hilton Casino Resort, which despite its own struggles that have delayed a major expansion is not part of the move against Resorts.
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