Shuttered Ocean City condo complex hits market for $7 million

A troubled Ocean City condominium complex closed since April because of structural problems is now up for sale for $7 million and is being pitched as a development site.

The Seaspray Condominiums are currently surrounded by a chain-link fence cutting off access to the 32-unit property at the corner of 34th Street and Bay Avenue in the south end of town.

Red tags have been slapped on the condos declaring that the buildings are currently “unsafe for human occupancy.”

Seaspray was shut down on April 17 by the city’s construction official after some concrete fell from the landing of an exterior stairway on the north side of the complex.

In a new development in the Seaspray saga, the property has hit the market for $7 million and is being touted as a “prime real estate, investment opportunity.”

“Seize this unique chance to be part of Ocean City’s dynamic growth and vibrant future. This development opportunity offers a blend of financial rewards, community benefits, and personal fulfillment, making it a highly attractive opportunity for developers and investors alike,” according to the real estate listing by Sabal Real Estate in Marlton, Burlington County.

Jenifer Raffa, the broker handling the sale for Sabal, did not return text, email and phone messages Wednesday seeking comment.

City officials were not available to discuss the prospect that the condos may be sold and demolished to make way for new development.

According to the real estate listing, the sale offers developers and investors the opportunity to jump into a lucrative market that features a strong demand for housing.

“Ocean City is a premier family-friendly vacation spot, ensuring high demand for both seasonal and year-round housing,” it says. “The city’s appeal continues to attract new residents, increasing the need for residential properties and property values.”

“Coastal properties in desirable locations like Ocean City often appreciate significantly over time. Strong demand for coastal properties ensures a lucrative return,” the listing adds.

The buildings date to 1960 and were originally part of the Seaspray Motel before they were converted into condos in 1980.

    The Seaspray condos have a history of structural problems, according to engineering reports.
  

The condos were first shut down in April 2023. At that time, the state Department of Community Affairs ordered the city to close down the complex after it was declared structurally unsafe. Then the condos reopened in May 2023 after an updated engineering report concluded they were safe.

Concerns about the Seaspray’s structural integrity surfaced again this year. Seaspray was shut down on April 17 by the city’s construction official after some concrete fell from the landing of an exterior stairway on the north side of the condos.

The buildings have remained shuttered since then, including the installation of a chain-link fence to block access to the property.

Neil Byrne, the city’s construction official, wrote in a letter dated May 8 that the condo complex remains “unsafe due to continued deterioration of the structural elements.”

Byrne added in the letter that repairs must be made to the damaged exterior landing steps as well as other problems outlined in an engineering analysis completed in August 2023 by Tadco Engineering of Lyndhurst, Bergen County, before the complex can be reopened.

    An exterior stairway on the north side of the Seaspray condominiums has been closed off with red tape.
  

Plans to repair and reopen the property have been complicated and delayed by a series of engineering reports as well as litigation between different factions of the condo owners and their managing boards.

Another engineering report, completed in April 2023 by Endicott Engineering, found that structural defects and deteriorating conditions were so significant at Seaspray that they presented a safety hazard to both the condo residents and the general public.

Endicott Engineering also concluded that the complex should be demolished. Overall, at least six engineering studies have been done since 2000, each determining that the buildings were structurally unsound, according to a lawsuit filed in 2022 against the Seaspray’s managing board and condo association.

Among other issues, the litigation focused on whether repairs should be made to the buildings or whether it would be better to demolish the complex altogether and sell the property to a developer.