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News release

Atlantic City, NJ

Prime Opportunity to Acquire Atlantic City’s Premier Boardwalk Development Site and to Create a New Entertainment Destination on the East Coast

Jones Lang LaSalle markets 19.5-acre, discounted land site on Atlantic City Boardwalk


ATLANTIC CITY, JULY 22, 2010 –Pinnacle Entertainment has selected Jones Lang LaSalle to exclusively market for sale a coveted 19.5-acre land site along the famous Boardwalk in Atlantic City. This site originally operated as The Sands Casino Hotel. Now, the improved and raw land that sits on a 19.5-acre site features approximately 500 feet of frontage on the Boardwalk and represents the premier development site in Atlantic City.  Pinnacle Entertainment is committed to selling the property, which in today’s market conditions will likely trade at a 70 percent discount.

The site sits two blocks from the new, highly successful 500,000-square-foot retail and entertainment district known as “The Walk” and it is just five blocks from the Rail Terminal and the Atlantic City Convention Center, which hosted 97 conventions and welcomed 220,000 guests in 2009.  The Walk is 100 percent leased and enjoys sales per square foot well in excess of $500.

Leading the marketing team on this transaction are Tom Kirschbraun, William (“Web”) Bingham and Edward Lewis of Jones Lang LaSalle’s capital markets business, along with Jeff Davis of Jones Lang LaSalle Hotels.

“This is the last remaining assemblage of land available in the center of the Boardwalk in Atlantic City.  The property represents a once in a lifetime opportunity to create the premier entertainment destination on the East Coast and invest in the future of Atlantic City. This site could easily rival the success of the Borgata,” said Tom Kirschbraun, a managing director of Jones Lang LaSalle.

“Here is a significant gap in the market for an upscale hotel and casino that attracts an affluent clientele for shopping, gaming and meetings and conferences,” said Edward Lewis, a vice president for Jones Lang LaSalle. “This property benefits from a favorable and stable regulatory and political environment at the state level and the second lowest tax environment for casinos In addition, numerous economic incentives and grants are available from the State of New Jersey and the Casino Redevelopment Authority will help promote future development of the property.”

“Investors have the unique opportunity to acquire a one-of-a-kind site with the second lowest tax environment in the nation for casino destinations,” said Jeffrey Davis, an executive vice president for Jones Lang LaSalle Hotels. “The flexible zoning allows a wide variety of uses including hotel, casino, residential, retail and entertainment to be built in multiple towers or phases. The density allowed on the site allows for more than six million square feet of space built to a height of up to 900 feet.”

Atlantic City is a dynamic resort destination combining the family-friendly elements of the beach and the Boardwalk with world class shopping, dining and gaming.  In 2009,more than 30 million people visited Atlantic City to enjoy the many attractions available to tourists and convention-goers.  The Atlantic City gaming market, the second largest in the country, is currently comprised of eleven casinos that generated over $3.9 billion in revenue in 2009.  Visitors to the area are also attracted by the retail and entertainment opportunities.  The Walk is a successful shopping, dining and entertainment district with 100 stores in the first two phases of the project.  Future phases will add new stores and a mix of restaurants, live entertainment, bars and nightclubs.  The Pier Shops at Caesars, just a few blocks from the subject property, is a high end shopping, dining and entertainment destination built on a 900 foot pier over the Atlantic Ocean.
 
About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $40 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.