The long hoped-for next big thing in Atlantic City is one step closer to actually happening. Morgan Stanley’s gaming subsidiary is ready to sponsor the city’s 13th casino, which will be next to the Showboat. From the Inky:
The gambling subsidiary of Morgan Stanley has acquired 20 acres on the Boardwalk to develop what will be Atlantic City’s 13th casino.
The Wall Street firm confirmed it paid about $74 million for the land, which had been controlled by a group of developers and the Atlantic City Housing Authority.
A Morgan Stanley official said yesterday that the company intended to choose a casino operator to build and operate the previously reported $1 billion casino hotel on the site that abuts the Showboat casino and the Bella Condominiums high-rise tower in the city’s rapidly developing South Inlet area.
“Morgan Stanley will act as the financial sponsor for the project,” Michael C. Garrity, director of MS Gaming Cos. Holdings Inc., said in an interview. “We will recruit an experienced gaming operator to develop and manage the project.”
Garrity described MS Gaming as the principal vehicle by which Morgan Stanley pursues investments in the gambling industry.
He would not name the firm with which MS is negotiating, and the New Jersey Casino Control Commission, which regulates Atlantic City’s casino industry, has not received any application for a new casino license.
But real estate professionals and gambling industry officials familiar with Morgan Stanley’s plans say a leading contender is Hard Rock International Inc.
Philadelphia Inquirer | 05/18/2006 | Morgan Stanley unit buys land for 13th A.C. casino
I’m optimistic, but I’ll believe it when I see construction. There’s been talk of developing something on this parcel for 20 years now. Hard Rock would be a good fit for Atlantic City. Unfortunately, there are fewer and fewer companies able to affored the $1 billion plus to get into the market left. Maybe If Hard Rock doesn’t jump in, one of the also-rans in the Aztar courtship will do so.