$210m Trump Plaza Casino sells for Record-Low $20m
If ever there were a sign of Atlantic City’s decline as a premier gaming destination, it’s the record-low $20 million sale of the Trump Plaza Hotel & Casino. A California-based real estate and construction company called the Meruelo Group purchased Trump Plaza and expects to complete the deal by May 31st, 2013. The $20 million sale price is the lowest in history for an Atlantic City casino.
Trump Entertainment Resorts spent $210 million building Trump Plaza back in 1984. And the project was an immediate success since it was located on the Atlantic City Boardwalk during the town’s prime years. But in recent times, the hotel and casino began to lose major value along with the rest of AC properties.
However, few people would’ve expected Trump Plaza Hotel & Casino to sell for just $20 million. Adjusting the 1984, $210m construction cost for inflation, this is a drop from $464,049,470 to the record-low sale price. The former board chairman at Trump Resorts International, Donald Trump, spoke about the deal by stating:
After selling this casino, Trump Resorts International has just one gaming establishment (Taj Mahal) left from their empire. The fading company also sold the Trump Marina Hotel & Casino in 2011 for $38 million; the new owner, Tilman Fertitta, renamed it the Golden Nugget Hotel & Casino.
In regard to Atlantic City as a whole, the once-proud gaming capital has been in a major decline since 2006 – when casino revenues hit a peak of $5.2 billion. In 2012, the town’s 12 casinos combined for $3.05 billion, which is almost a $2 billion fall from six years ago. This being said, it’s now wonder why the Trump properties have declined so much in value.