The Los Angeles-based Colony Capital, which is headed by financier Tom Barrack, will pay seller Sun International $148 million for the property, Atlantic City's oldest casino hotel (it opened 23 years ago). The purchase price is slightly more than the $140 million figure floated when the deal was originally announced last fall, and both figures are well below the $350 million Sun spent to buy the property five years ago. Sun had also poured $50 million into Resorts to renovate and upgrade it since the earlier purchase.

Besides the hotel/casino itself, Colony Capital is also spending $40 million on an option on 15 adjacent acres. Market conditions permitting, Barrack would like to either expand Resorts or build a separate casino/hotel property on the site.

The deal was put together by former Trump organization exec Nick Ribis, who resigned from Trump to work on the package. Ribis has invested more than $2 million in the sale himself, taking an equity stake reported to be over 10%, and he has been installed as vice chairman of Resorts.

"This is a compelling opportunity for us," according to Barrack. "It's our first venture into one of the major gaming markets, and we feel Resorts will enhance our existing portfolio of casino operations."

Colony Capital, which has total worldwide holdings of $6 billion, owns Harvey's Casino Resorts, all in smaller markets. According to Barrack, Resorts, which totals 644 guest rooms in two towers, seven restaurants, a 1,400-seat theater, 50,000 sf of meeting space and other amenities, "won't be integrated into our existing casino platform."

Sun International was the second of two owners who failed to right the troubled property--earlier it was entertainer Merv Griffin. The property has weathered two bankruptcies, and observers describe Colony Capital as the "best chance" for Resorts to return to stable financial operations.

The temporary license allows Colony Capital to buy and operate the property pending final licensing approval. The Casino Control Commission is expected to vote on final approval by mid fall.