Known as the Atlantic Club, the Atlantic City, New Jersey, casino and resort has been vacant for 11 years, but now it is on the market in two different parcels by its owner, New York-based Colosseo Development Group Inc.
Long Legacy in AC
The Atlantic Club, known as the Golden Nugget Atlantic City when it opened in 1980, became the first from-the-ground-up casino resort ever built by the original owner, Las Vegas gaming magnate Steve Wynn. It was also the area’s highest revenue-producing casino in Atlantic City in 1983 despite its relatively modest gaming size.
However, Wynn sold the property for $440 million to Bally’s in 1987 and bid adieu to Atlantic City over several spats with state officials. Wynn vowed never to return to Atlantic City, a promise he has yet to break, and focused all of his attention on Las Vegas, where he became a billionaire gaming tycoon.
Bally’s would rename the property Bally’s Grand, but when Hilton bought Bally’s, they renamed it the Atlantic City Hilton. However, Hilton eventually sold the property in 2011, and it was renamed the ACH Casino Resort and rebranded yet again, as the Atlantic Club, before it closed in 2014. It became one of four casinos in the area that closed that year, including the Showboat, Revel, and Trump Plaza.
Development Challenges
Colosseo Development Group bought the property for $25 million from TJM Real Estate in 2019, and some of the same issues Wynn had with state officials decades earlier arose, according to Colosseo’s President Rocco Sebastiani. A lack of movement in issuing permits from state and local officials has prevented the company from implementing its plans, ranging from a waterpark to condo units.
The taller of the two hotel buildings is being listed for $55 million and has 330 guestrooms, including a 10,000-square-foot lobby that once housed the casino. It has direct beach access, and because it was designed from the ground up by Steve Wynn, the real estate agent said the property has “legendary provenance” and comes equipped with “built-in prestige and cachet.”
No listing has been made public for the other building, but Colosseo has made no secret of his desire to turn those into condo units.
Doing Business in Atlantic City
Colosseo Development Group’s president, Rocco Sebastiani, has made no bones about his dislike and contempt for Atlantic City Mayor Marty Small. He calls the mayor and his administration corrupt for not issuing permits and impeding the development of the Atlantic Club property.
“The corruption under Marty Small kept my project suppressed. I was told by many city guys that if I sat with the mayor and Anthony Cox (overseer of the Atlantic City Division of Construction for three decades), I would get my permit quickly. I chose not to pay to play,” Sebastiani said.
Sebastiani stated he has bypassed the local red tape by appealing to the state Department of Community Affairs (DCA), which assists with local governments and businesses. Although Sebastiani gave no evidence to corroborate his accusations that Small and his administration were corrupt, the unseemly legacy of Atlantic City mayors includes four who were arrested on corruption charges since 1970.
