Stockton University has agreed to sell the former Showboat Casino Hotel in Atlantic City to developer Bart Blatstein’s firm for $22 million, the school announced Friday.The sale price is about $4 million higher than what Stockton paid for it last December when it acquired the shuttered gaming hall from Caesars Entertainment, with plans to convert it to a satellite campus. Expected to close around Nov. 9, the sale would help the Galloway-based university move on from the property after those plans fell through as a result of a legal restriction on how it could be used.
The deal with Blatstein, CEO of Philadelphia-based Tower Investments Inc., was first reported Monday by NJBIZ. Blatstein is also overseeing the transformation of the former Pier Shops at Caesars.
“Stockton is pleased to have worked out an agreement of sale with Bart Blatstein, a developer known for successful community partnerships in Atlantic City and Philadelphia,” Harvey Kesselman, Stockton’s interim president, said in a prepared statement. ”We were seeking a purchaser who demonstrated a commitment to Atlantic City when others were unwilling. Bart Blatstein is such an individual.
“The agreement allows the university and Mr. Blatstein to continue working together in ways that will benefit Stockton and contribute to Atlantic City’s renaissance.”
The announcement does not discuss whether Blatstein plans to reopen Showboat as a casino, following its closure last summer, or whether he would attempt to resolve the deed restrictions that derailed Stockton’s original plans for a satellite campus. The restrictions are tied to a 1988 agreement between Caesars and the owners of neighboring Trump Taj Mahal, which said the property could not be used for anything other than a casino-hotel.
Stockton’s purchase agreement includes a passage that says “it is expressly acknowledged and agreed by the parties that this agreement is not contingent upon resolution of … the conflict of use restrictions (and) it is being acknowledged that seller is not obligated to make any effort to resolve such conflict.” The agreement also says Blatstein’s firm is required to buy the property subject to the use restrictions.
The deal also provides for Stockton to utilize some of the property’s entertainment venues for performances, while the Stockton Seaview Hotel and Golf Club would work with Blatstein’s hotel operation to accommodate guests when there is overflow demand, according to a news release.
“We anticipate that this sale will be successfully completed, and Stockton will continue to move forward,” Kesselman said. “We will always focus on the best interests of our students as we expand the facilities on our Galloway campus and continue to explore opportunities for future growth in Atlantic City.”
Blatstein developed and operates The Playground, a shopping, dining and entertainment complex at the site of the former Pier Shops. He is also known for the Piazza in Northern Liberties, a redevelopment project that helped transform a neighborhood in Philadelphia.
