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Lady Luck Changes Hands

By Chuckmonster on Tuesday, 24th May 2011 5:56pm
  » filed under Mergers & Acquisitions  comments: 7


The Review Journal is reporting that the owners of Lady Luck - CIM Group - "will turn redevelopment of the long-shuttered downtown hotel and management of the casino over to Fifth Street Gaming."

The article goes on to discuss the high points of Lady Luck's recent history, but doesn't delve into what exactly it means to "turn redevelopment over."

Has CIM simply given the property away or is this an announcement that they have entered into an agreement with a subcontractor or is it a sale and/or trade? More on this as it develops...

Peep the previous plans for Lady Luck's renovations here.

Tagged: lady luck   redevelopment   


Comments & Discussion:

One of Fifth Street's principals, Seth Schorr, is the son of long-time Wynn exec Marc Schorr. Seth made news a few years ago with ambitious casino industry plans, going out on his own.


Do you think this is a sale, strategic partnership or whut?

As you noted, the story is very vague. Hard to say.

Schorr's previous MO has been to find cheap, semi-distressed properties and rehab them... And it seems to me that Lady Luck would be a logical extension of this methodology - more or less the next rung up. Based on that, I'd say a sale but it could be as simple as an assumption of debt / 'get us the hell out of here' for the current owners.

Re-reading the story, I'm now even less sure what this means.

"redevelopment of the long-shuttered downtown hotel and management of the casino"

That makes it sound like perhaps ownership will stay as-is but direction and management of the renovations, as well as operation of the casino, will go to Fifth Street?

Hopefully someone with more info will chime in.

I'll tell you what I know, which isn't much at this point.

Fifth Street plans to re-open Lady Luck--at least that's what they're saying. I'm supposed to be talking with Seth Schorr next week, and hopefully I'll be able to learn some more. I will share what I learn.

The vagueness is probably deliberate because they didn't want to come out and say, "Now that we scored this fucker for pennies on the dollar, we're going to sit on it until the market turns around a la Fountainbleau."

From the way it sounds, the ownership of the property will remain as it is, but they are having another company run the redevelopment and once it re-opens, they'll operate the casino and hotel on their behalf. It may be a simple leasing deal, which for Downtown is not unprecedented since some of the casinos Downtown lease the land they sit on.

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