Gordon Group Holdings LLC and Taubman Centers, Inc. have jointly agreed for Taubman Centers to invest in The Pier at Caesars (Atlantic City, N.J.), a project currently under development by Gordon Group.
In addition, the developers have entered into a focused joint development agreement for future projects.
Under the agreement, Taubman will have a 30 percent interest in The Pier.
Taubman's total capital contribution amount will be computed at a price to be calculated at a seven percent capitalization rate, based on the project's 2007 stabilized net operating income (NOI).
Currently under construction, The Pier at Caesars, is expected to open in early 2006.
The $175 million project is located on one of Atlantic City's historic piers, directly across from (and soon to be connected to) Caesars Atlantic City Hotel and Casino, and adjacent to Bally's/Wild Wild West Casinos.
With approximately 320,000 s/f of prime retail and restaurant space, The Pier was conceived as an upscale fashion retail, dining and state-of-the art entertainment destination.
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