by Lisa Grimaldi | April 07, 2010

Morgan Stanley is pulling out of the Revel Casino project in Atlantic City -- in which it owned a 94 percent stake -- a move that will result in a loss of its $1.2 billion investment in the boardwalk property, which is under construction. According to the Asbury Park Press, in a filing with the U.S. Securities and Exchange Commission, the company said it anticipates the move will result "in a substantial loss" of its investment; Morgan Stanley did not give a reason to the SEC for its decision to abandon the project. The company is considering an auction or direct sale to a third party of the partially built property.