Atlantic City Original Golden Nugget Atlantic Club

Atlantic City Original Golden Nugget Atlantic Club Aims to Reclaim Glory in Famous Boardwalk Town

Buy low. Sell high. The golden rules of investment and best way to describe a profitable venture. During the 1980’s and 1990’s, Atlantic City, was a premier destination for tourists, gamblers and vacationers. The Original Golden Nugget Atlantic Club in Atlantic City was the iconic resort in town for many years.

I remember building my first Sand Castle at the legendary Trop World in prime Atlantic City. The smell of saltwater taffy and fried clams on the Boardwalk permeated the entire town.

Atlantic City boomed for many years. In 1990, Steve Wynn, sold the Original Golden Nugget in Atlantic City and former Atlantic Club for nearly $500 Million. Donald Trump opened multiple casinos including Trump Taj Mahal, the now-shuttered Trump Plaza, and Trump Marina. 

However, in the late 1990’s the boom was over. There was too much Casino competition. Existing Casinos became run-down. Not enough investment was made into non-gaming areas of Atlantic city. Politics took over. And people started traveling to more modern and sophisticated areas such as Las Vegas, Mohegan Sun and Foxwoods. Even Yonkers has a Casino today. 

The first wave of re-investment came back in the early 2000’s when the Borgata was built and developed. The casino hotel features 2,798 rooms and is the largest hotel in New Jersey. Borgata opened in July 2003 and is the top-grossing casino in Atlantic City.

In May 2016, MGM  purchased Boyd’s 50 percent stake in the Borgata for $900 million in cash and assumed debt. MGM then sold the property to its affiliated REIT for $1.18 billion and leased it back. The sale to MGM Resorts was completed in August 2016.

During the past five years, with prices hitting rock-bottom and incentive based programs such as Opportunity Zones hitting the market, Atlantic City has received a surge in Capital, as the City is in the midst of a major comeback

 

Recent Atlantic City Activity – Money Invested

1. Hard Rock Hotel – $500 Million investment. Purchased the Trump Taj Mahal in 2017. They have already invested more than $500 Million into this property
2. Revel Casino – Originally built for $2.4 Billion. Purchased by private equity and Oceans Resorts. Several hundred million has been re-invested during the past several years
3. Stockton University – $500 Million. Stockton has built a new brand-new Campus and student Housing facility with more almost 500 beds. Their property is adjacent to the Original Golden Nugget / Atlantic Club property. They have spent more than $500 Million. Atlantic City aims to be their primary campus in the near future.
4. Showboat – Bart Blatstein, Owner of Showboat plans to invest money into the property and potentially re-open a Casino on the premises
5. 600 NOBE Rental Development – 250 Luxury Units. $85 million market-rate housing project has done exceptional well. Visit 600NOBE

Additionally, Total gaming revenue reported by the city’s nine casinos was more than $270.5 million last month, a nearly $50 million increase, or 22.6%, over January 2019.

 

 

Original Golden Nugget / Atlantic Club: Recently Purchased

One of the latest properties to transact in Atlantic City is the Original Golden Nugget and former Atlantic Club Hotel in Atlantic City. This property was originally developed by Steve Wynn and sold in 1990 for almost $500 Million. The Hotel switched brands several times and the asset was most recently shuttered in 2015. In 2019, the property was recently purchased by a new Ownership group. The property is currently undergoing renovation and plans to re-open in the near future.

 

Atlantic City – Original Golden Nugget Atlantic Club: Property Details

• North & South Tower
• 809 Total Rooms
• More than 1 Million Square Feet
• 28 Acres of Property
• Private Beachfront
• 90,000 SF Food & Beverage
• Massive Conference Center Space
• Includes Additional Building – 20,000 SF Entertainment Venue Building
• 9 Story Garage – With 1136 Parking Spaces
• 40,000 SF of Office Space

 

Atlantic City Opportunity Zone

The Atlantic City Original Golden Nugget Atlantic Club is located in an Opportunity Zone making this property a prime investment for many years to come.

 

 

Atlantic City Original Golden Nugget Atlantic Club – Investment Opportunity

With a surge in investment dollars pouring into the Atlantic City market, Ownership welcomes investors and potential partners. This is an ideal investment opportunity for an Opportunity Zone fund, private equity firm, hedge fund, REIT, hospitality group or private investors group.

Investors have the opportunity to not only earn double digit returns, but realize the massive appreciation for this property as we anticipate the asset will double or triple in value, if operated correctly within the next several years.

Projections are based solely off a non-gaming component. The ability to add a Casino at a future date is additional value-added revenue.

 

Unique Proposition

The true value of the Atlantic City Original Golden Nugget Atlantic Club is the ability to deliver an operating Hotel well below replacement cost. Including renovations, this property will be delivered at a value far less than competitive Hotels and properties in Atlantic City. This allows the investor to break-even and earn profit very early into the acquisition or partnership.

Current Ownership has strategically created a well-versed team that carries a financing, construction, marketing and brokerage arm all respectively.

 

Why We Love this Asset?

1. Beachfront – It’s almost impossible to create more beachfront properties. Situated on an exclusive private beach, the Atlantic City Original Golden Nugget Atlantic Club has spectacular views of the Atlantic Ocean. Private beach access also allows for a private beach bar on the property
2. Cost Basis & Financial Opportunities – We love the investment opportunity both in the near-term and short term. The potential is unlimited
3. Endless Possibilities – This asset plans to re-open as a Hotel. In the future there are endless possibilities for oceanfront Condos, Student or Senior Housing facilities and other opportunities
4. Massive Food & Beverage – 90,000 of Food & Beverage overlooking the Atlantic Ocean
5. Future Casino – The ability to open a Casino at a future date is icing on the cake
6. Conference & Event Space – Meeting rooms, event space and weddings with Oceanfront views
7. Parking – 1136 spaces. There is plenty of parking on the premises. Operate your own parking operation or lease out to an operator
8. Entertainment Venues – Live Boxing, Concerts, Bowling alleys and other ventures are within the realm of possibilities
9. Opportunity Zone – Park your money into an OZ property for years to come

 

Contact Us

For further information regarding the Atlantic City Original Golden Nugget Atlantic Club please contact garayrealestate@gmail.com