Megabank buys resort in Reno

RENO -- A subsidiary of JPMorgan Chase & Co. will take over ownership of Reno's largest gambling property, a newspaper reported Saturday.

Ownership of the Grand Sierra Resort and Casino in Reno will be transferred about Oct. 23 to Credit Markets Real Estate Corp., according to the Reno Gazette-Journal.

The resort's daily operations will not be affected by the ownership transfer, company officials said.

JPMorgan and Grand Sierra officials declined further comment.

JPMorgan, a New York-based bank, is the property's chief financier.

The current owners, Grand Sierra Resort Corp., bought the property for $150 million from Caesars Entertainment in 2005.

Reno Mayor Bob Cashell said he left a meeting Friday with JPMorgan executives feeling positive about the property's future. The transfer does not mean that the resort was sold, he said.

"They are just taking over management ... The other company is just going to come in, manage it and keep it going," Cashell said.

Bill Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno, said the move was not surprising.

He attributed it to financial difficulties and the slowdown in the economy.

"JP Morgan would certainly be a willing seller and a very interested seller at some point," Eadington said.

New ownership pledged to finish renovations to the resort, Cashell said.

When they took over the property in 2005, Grand Sierra executives announced ambitious plans for an indoor water park, and new retail space and luxury condominiums.