Purchasing a casino worth $2.4 billion in just $110 million is certainly not less than a jackpot. The resort is beautifully built and in my opinion, assets within the casino will be of worth more than $110 million. For the real jackpot, they must have some good business plan to utilize the assets for making more money. To be sure of this worthy deal, they should pray for Straub not to challenge the bid results.
Brookfield's recent purchase of the Revel Casino, in Atlantic City, for $110 million... reportedly $2 billion less than it took to build the casino initially, is a definite win in the world of real estate. At the greatly reduced purchase price, Brookfield should be able to turn a profit even if he has to tear down the existing property and rebuild a new casino that better suits the tastes of Atlantic City's main clientele. The purchase of the property at such a reduced rate can only be considered a win.
Brookfield did hit the jackpot by purchasing Revel casino. The casino is only two years old. It may take some time to renovate to how they see hit but it's at a prime location in Atlantic City. Brookfield has other successful casinos in Las Vegas and the Bahamas which will give him plenty of expertise in creating an amazing new casino in New Jersey.
The Revel is not the only casino in Atlantic City that is in trouble financially. Trump Plaza closed it's doors on 9/16/2014 making it the 4th casino to close. And there is the increasing likely that Bally's and Caesars will be filing for Chapter 11 Bankruptcy in the near future. There are now 25 casinos in the Mid-Atlantic region, whereas 10 years ago the only legal gambling in the Mid-Atlantic area was in Atlantic City, increasing competition for the gambling dollars. The added competition and the state of the economy will continue to be bad news for Atlantic City casinos.