Lenders are seeking to foreclose on a portion of the Showboat Resort in Atlantic City.
A foreclosure complaint was filed against Showboat Properties LLC and owner Bart Blatstein on June 30. The case was filed in New Jersey Superior Court in Atlantic County.
Computershare Trust Co. initiated the action on behalf of investors holding a $48.5 million CMBS loan tied to the property.
The foreclosure involves a specific parcel extending from Pacific Avenue to the Atlantic City Boardwalk. However, the action does not cover the entire Showboat property.
The affected parcel includes at least 475 hotel rooms and a 1,950-space parking garage. Additionally, the property includes the Lucky Snake Arcade and several entertainment attractions.
Those attractions include a go-kart track, miniature golf course, rock climbing wall, and axe-throwing area.
Meanwhile, nearly 400 additional hotel rooms sit on neighboring parcels outside the current foreclosure action. The 120,000-square-foot Island Waterpark is also located on separate parcels.
The waterpark opened in 2023 as a major expansion of the Showboat’s entertainment offerings.
More recently, Blatstein secured $45.5 million in C-PACE financing for the waterpark property. The financing was used to recapitalize the construction loan associated with the project.
The foreclosure action adds another layer of uncertainty surrounding the Atlantic City resort property. Furthermore, it highlights financing challenges that can emerge as commercial real estate loans face increased scrutiny.
If the foreclosure proceeds, the affected portion of the Showboat could eventually be offered through a sheriff’s sale. The remaining resort parcels are not included in the current action.
*Article courtesy of Philadelphia Business Journal
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