Troubled condo complex in Ocean City still looking for a buyer

Two months after a shuttered Ocean City condominium complex went up for sale with an asking price of $7 million, there is no word whether the property is attracting any interest from would-be buyers.

The troubled Seaspray condominiums were closed down by the city last April following structural problems at the 32-unit complex overlooking the corner of 34th Street and Bay Avenue.

The site remains surrounded by a chain-link fence to prevent anyone from gaining access. Red tags have been slapped on the buildings declaring them “unsafe for human occupancy.”

Jenifer Raffa, the broker handling the Seaspray sale for Sabal Real Estate in Marlton, N.J., confirmed Thursday that the condo complex remains on the market.

“Nothing has changed,” she said in brief comments about the $7 million sale.

She declined to say whether any potential buyers have made offers on the property.

Raffa referred all other questions to Dominic Simeone, a Cherry Hill attorney who she said represents the Seaspray’s condominium association. Simeone did not return a call Thursday seeking comment.

The Seaspray property is being touted in the real estate listing as a prime redevelopment site and investment opportunity for buyers. It raises the possibility of modernizing or expanding the existing buildings instead of demolishing them for entirely new construction.

“The existing infrastructure presents a solid foundation for redevelopment, catering to developers looking to enhance the property's value through modernization or expansion. This investment opportunity not only promises attractive returns but also aligns with the vibrant coastal lifestyle that Ocean City is known for, making it a compelling option in the region's competitive real estate market,” the listing says.

    Red tags placed on the buildings declare that the property is “unsafe for human occupancy.”
  

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

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.

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, N.J., before the complex can be reopened.

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 posed 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.

    Part of an exterior stairway on the north side of the Seaspray condos collapsed.