Trump Plaza in Atlantic City is set to be demolished. The confirmation of the property’s fate came from Mayor Don Guardian. He told the Press of Atlantic City that there are currently plans in place to demolish the property. The boardwalk property was previously owned by Donald Trump before being sold to its current owner.
Trump Plaza Reminder of Recession
The Trump Plaza is located on some of the most valuable land in all of Atlantic City. The expressway ends right in front of Trump Plaza, and it has some high-profile neighbours. These include Boardwalk Hall and Caesars. Currently, it is owned by Carl Icahn, who bought it when he took ownership of Trump Entertainment Resorts in 2016. Trump Plaza closed its doors back in 2014, though, and was the fourth casino in Atlantic City to close that year.
It has remained a reminder of the recent recession that caused so many problems in Atlantic City. Icahn also owned the Trump Taj Mahal, which was sold to Hard Rock International for just $50 million. Icahn is said to have lost $350 million with the Taj Mahal. As for Trump Plaza, the process of cleaning out the property has begun. Contractors have been hired to clean out the rooms, and auction houses have been selected. The building could be demolished in as little as four months.
Trump Plaza Rejected by Hard Rock
It is believed that Icahn also tried to sell it to Hard Rock as part of the Taj Mahal deal. Hard Rock passed on the offer, and it could actually be quite a difficult task to accomplish. The reason is that the property sits on land that the owners of Trump Plaza do not own. The land has been leased, and this lease comes at quite a premium.
Back when it was built, Donald Trump leased the three acres of land for $1 million per year. The lease agreement lasts for 94 years, until 2078. Even with the casino closing in 2014, the lease agreement had to be honoured. Time will tell what will happen with the land.