Rivera’s In Trouble 

Riv Acquisition Holdings just rejected a $426.5 million bid for the Rivera, and East Coast investors are now starting their due-diligence checks. The problem wasn’t necessarily with the bid itself, it was really more to do with the number of shareholders that have bought in to the property. 

If you look at the fact that the shareholders had bought in for more per share than the proposed sales price, then you add to that the fact that they are undervaluing the land, you end up with a real problem with pricing. Those that are interested in seriously making a purchase have to look at the actual price of the land, and then re-evaluate what they want to offer for the property. 

The strip’s land has been running as high as $30 million an acre, so keeping that in mind, investors should be looking at a bid somewhere around several hundred million – probably $700-800 million and up. Since there will be demolition involved, and the fact that it is a small property, investors probably thought it should go for less, but it probably shouldn’t.

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