ATLANTIC CITY-The empty beachfront lot that has yawned center stage on the boardwalk here for three years has an investment buyer, according to a report in The Press of Atlantic City.
Meanwhile, the California developer Meruelo Group has put its planned purchase of the Trump Plaza Hotel and Casino here on hold.
Mitchell Mekles is in the process of purchasing the boardwalk property from Pinnacle Entertainment Inc., according to Toms River-based property appraiser Anthony Graziano. He and partner Brian Popper have been exploring commecial real estate development ideas – including construction of an amusement park – but are not ready to release details, according to the appraiser.
Last month, Pinnacle had filed information with the U.S. Securities and Exchange Commission saying it had an agreement to sell the property for $30.6 million, but didn't identify the buyer.
Las Vegas-based Pinnacle originally planned to build a $1.5 billion megaresort on the property, and demolished a parking garage there in 20008 to allow it - but then gave up on the idea in 2010.
The land has been on the market ever since; meanwhile, Atlantic City casino receipts have continued to dwindle as gambling outlets in New York and Pennsylvania keep coming on strong.
Concerning its delayed purchase of Trump Plaza for $20 million, the Meruelo Group issued a statement that said, “We are disappointed to announce that our acquisition of the Trump Plaza cannot be completed as planned at this time because Trump Entertainment has been unable to obtain a release of the mortgage held by their senior secured lender,” The lender for the Trump Plaza is billionaire Carl Icahn.
Trump Plaza finished at the bottom among Atlantic City's dozen casinos last year, grossing just $102.5 million. If the deal closes, the $20-million price tag would be the lowest ever paid for an Atlantic City casino, according to the newspaper.
Meruelo has an option to purchase the property later this year if the mortgage can be mortgage can be arranged.
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