The latest deal came down three years after Colony tried to break into the market with an offer to buy the Trump Castle, only to have the deal fall through. At the time, Ribis was on the Trump payroll. He left that post this past May and subsequently approached Colony chairman Tom Barrack about doing a deal. Resorts International is located right next to Trump's signature AC property, the Taj Mahal.

Officials are mum regarding Ribis' role in the operations of Resorts International--he worked on a consultant basis on behalf of Colony. They've indicated, however, that for the time being the existing management team will be left in place at the property.

The sale includes a $40-million option to buy a 15-acre site located next door. Colony is said to be considering the site for possible expansion.

While the property has struggled for years, it has been showing signs of an upswing. Sun recently poured an estimated $50 million into sprucing it up, and gaming revenues grew 8% in the third quarter of this year. But Resorts is usually ranked ninth out of the city's 11 casino/hotel properties, ahead of only the Sands and the Claridge. Both of those properties have been in bankruptcy proceedings.

Essentially, the investment was made to position Resorts for sale. The company will use the proceeds to focus on its flagship property on Paradise Island in the Bahamas, and on the Mohegan Sun in Connecticut.

Colony has $6 billion in investments in four funds.