Trump Entertainment Resorts is selling its Trump Marina hotel-casino in Atlantic City to Coastal Marina LLC to make way for a Margaritaville destination resort.

As part of the agreement, New York City-based Coastal Marina will pay $316 million for the property. As part of the transaction, the two sides have agreed to end prior unrelated litigation, with prejudice, upon closing.

Coastal Chairman Richard Fields said the property will be transformed and rebranded as a Margaritaville destination resort.

“Together with Jimmy Buffett’s team at Margaritaville, our plans are to create an exciting new property that we believe will tap its full potential and make it one of the most successful destination gaming resorts in Atlantic City,” Fields said.

“In the weeks and months ahead, there will be additional announcements and more details about the transition of ownership and our new resort concept.”

For his part, Donald Trump, chairman of Trump Entertainment Resorts, said Coastal is buying a wonderful building in a great location. “It has been an important part of our company with a loyal customer base and a dedicated team.”

Mark Juliano, chief executive officer of Trump Entertainment Resorts, said the transaction, when completed, would provide the company additional financial flexibility to master plan the future of the company “in the midst of an overall transformation which has already been marked by many successes. “As we look forward to the opening of the new 782-room hotel tower and Il Mulino restaurant at the Taj Mahal later this year, wer are encouraged by the success of the projects we have already introduced, including the refurbished casino floors, upgraded room products and brand new penthouse suites at the Taj Mahal and Plaza. Now we are closely evaluating the variety of options before us to create value for our shareholders, including additional development in Atlantic City, reducing the company’s debt and potential projects to diversify our interests outside of Atlantic City.”

 —Staff reports