Ocean City motels, adjacent apartment building approved for redevelopment list for $16M
Travel & Tourism / By Ryan Mulligan Digital Producer, Philadelphia Business Journal
The Pavilion Motor Lodge, Fountain View Motel and an adjacent apartment building in Ocean City have all hit the market, with the three parcels combined listing for $16 million.
The property spans about an acre on the 800 block of Atlantic Avenue, located a block off of the beach in the Jersey Shore town. The Pavilion has 58 rooms, the Fountain View has 19 and the Moorlyn Terrace apartment building has eight units. The parcels are also being sold separately — with the two hotels listed together for $10 million and the apartment building separately for $6 million.
The sellers have already secured site plan approvals for demolition and redevelopment from the Ocean City Zoning board. The approved redesign sits on the entire footprint of the three-parcel property and calls for 35 three-bedroom, three-bathroom condo units. In order to obtain the permit, the buyer would have to buy the entire property for $16 million.
Listing agent Kristina Doliszny who has sold Ocean City properties like the Atlantis Inn and the Scarborough Inn, said that the town is “very interested in redevelopment of the 8th Street corridor.” She added that with the property “teed up and shovel ready” it would be easy for a developer to purchase the space, follow through with the approved plans, or design their own.
A rendering of the proposed and approved redevelopment.
KRISTINA DOLISZNY/OCEAN CITY REAL ESTATE GROUP
“It’s a needle in a haystack to find large parcels of property on New Jersey’s barrier islands, especially the high-income ones,” Doliszny said about the property. “You’re not going to be able to get a property this big on the beach block, steps from the boardwalk almost anywhere else in New Jersey.”
The three parcels also sit in a hospitality zone, which allows for and prioritizes high-density developments like hotels, motels, restaurants, mixed-use and multifamily developments. The property also includes a restaurant, Brenda’s Cafe, a leased space at the bottom of the Pavilion which operates separately from the motel.
Current owners Brothers Raj and Yogi Khatiwala bought the four-property parcel in 2019 and put “significant work into it,” Doliszny said. The duo owns other hotel properties in New Jersey, as well as other states, and is selling to “diversify their portfolio” Doliszny said. Before the Khatiwalas, the Pavilion was owned and operated by the Capizzi family, who owned it since the 1960’s, according to Doliszny.
“It’s very rare that these legacy properties change hands in one’s lifetime and this one’s changing hands twice,” Doliszny said.
Though Doliszny, who previously owned and operated the Atlantis Inn, thinks the lot would be highly coveted among developers, there is also a high value for hotels in Ocean City.
“Over the course of last five to 10 years, there has been an exponential exodus of hotel properties in town because they’ve sold to developers and turned them into residential condo buildings,” Doliszny said. “There’s a need to have hotel rooms to support Ocean City’s tourism. There’s a tremendous need, for overnight hotel stays, the inventory is depleted to very little, but there’s still a huge demand.”
Doliszny recently brokered the sale of Ocean City’s Tahiti Inn, whose buyers were intent on selling to a hotelier who would keep the operation running. That may have tempered interest from developers, but the longtime Ocean City Realtor said she still had 56 qualified interested buyers that signed non-disclosure agreements to explore a purchase of the hotel. She expects interest in the Pavilion to be the same if not more.
The Pavilion Motor Lodge and the Hotel Fountainview have roots that trace back to 1955. As motels grew in popularity and began making their way to the Jersey Shore, Ocean City passed an ordinance banning them within city limits. Businessman Francis H. West, in defiance of the ordinance, built Hotel Fountainview, dubbing it a hotel but building it with a traditional motel style. He went as far as advertising it as a “MOdern hoTEL,” emphasizing ‘motel’ in the ad, according to the hotel’s website. The two-story structure has 19 rooms with exterior walkways and a parking lot just behind each room.
In 1963, the Pavilion Motor Lodge was built and opened adjacent from the Hotel Fountainview. The Pavilion, with its recognizable seahorse logo, includes two buildings standing three stories high, with a total of 58 rooms and restaurant space below.
The Pavilion Motor Lodge is one in a growing list of iconic Ocean City businesses set to change hands or close operations. The Tahiti Inn Motel and Apartments went up for sale in June after being in the same family for 33 years, Italian takeout spot Voltaco’s is closing in October after 68 years, Ward’s Pastry will close Sept. 18 after 98 years and OC Surf Cafe is set to close after 10 years.
Listing Details by Kristina Doliszny, Ocean City Real Estate Group, Keller Williams Realty Jersey Shore click here/linked here: Wealth Creation Opportunity: Exclusive Ocean City 10% CAP RATE Hospitality Beach Block Acquisition
Article Published in By Ryan Mulligan , Philadelphia Business Journal
Here is a link to the original story: Ocean City motels, adjacent apartment building approved for redevelopment list for $16M
NBC NEWS COVERAGE link:
NBC Phila News At Jersey Shore
‘It is concerning’: Rent growth has cooled but is still at record highs in many metros, keeping homeownership out of reach for would-be buyers
James Faris, Business Insider August 19, 2022
A 2008-style housing market crash is “definitely not” happening, said Molly Boesel of CoreLogic. However, the economist noted that record-high rent growth is having a negative affect. Here’s how hopeful homebuyers can know which markets to avoid and what mortgage to choose.
One of the biggest fears of any hopeful homebuyer is paying up for their dream home, only for the bottom to fall out of the real estate market in a 2008-style crash. Fortunately, that’s not an issue that househunters need to worry about right now, said Molly Boesel, the principal economist at CoreLogic, in a recent interview with Insider. The US real estate market is cooling off as new home supplyincreases and borrowing costs in the form of mortgage rates rise, but Boesel said that the market’s fundamentals are solid. In fact, indicators like relatively low inventories and the number of days that homes are on the market show that the market is still hot, Boesel said, even if home prices climb at a slower rate.
Boesel’s base case is for double-digit home price growth for the remainder of this year and 6% in 2023, which aligns with fellow market observer Rick Sharga’s belief that it’s a mistake for hopeful homebuyers to bank on widespread declines. However, she can’t rule that scenario out. “There’s a clear chance of sales slowing down, maybe in the 10% range compared to last year,” Boesel told Insider. “But keep in mind, last year for home sales was the highest since just before the great recession. So we’re coming off a really high number of home sales.”
Boesel continued: “There’s definitely some slowing. We’ve already seen the slowing through midyear, but we’re not expecting home prices to fall.”
Still, the economist went as far as to say there’s “definitely not” going to be a market meltdown. Comparisons between the financial crisis and today’s market are flawed, in her view, because back then, there were high levels of negative equity that aren’t present in 2022. This sentiment is in line with comments from numerous real estate experts that Insider polled earlier this year. “It’s a completely different situation for borrowers,” Boesel told Insider. “They’re in a much better position.”
Rising rents are a serious concern
While a housing crash anytime soon is far-fetched, there’s still one big concern for homebuyers, in Boesel’s view: Just like home prices, rent growth continues to climb, albeit at a slower pace.
Rent growth for single-family properties in the US rose 13.9% year-over-year in May and remains at an all-time high, according to a CoreLogic report released last month.
While rent growth didn’t accelerate on a month-over-month basis for the first time since January 2021, the fact that rent and prices for other goods have stayed historically elevated is troubling, especially considering that inflation hurts lower- and middle-income households the most.
“Even though rent growth eased a bit, it’s still up there at near-record-highs in rent growth,” Boesel said. “So that is concerning for consumers. As they face higher rent, they also were trying to buy, they would face higher home prices and just, in general, high inflation all around. So it is concerning for consumers.”
Metro areas with the highest year-over-year rent growth in May, according to CoreLogic’s report, are as follows: Miami, Florida; Orlando, Florida; Las Vegas, Nevada; Phoenix, Arizona; San Diego, California; Atlanta, Georgia; Dallas, Texas; Austin, Texas; Boston, Massachusetts; and Tucson, Arizona.
One trick hopeful homebuyers can use
While househunters are getting squeezed by record rents while they wait to pay up for a property, it’s not all doom and gloom.
There’s a step that homebuyers can take to make getting a new home more affordable, Boesel said: choosing an adjustable-rate mortgage (ARM), which is a loan with a flexible interest rate.
Just 9.5% of homebuyers opted for an ARM in mid-July, according to the Mortgage Bankers Association, which is still a far higher rate than in recent years. Because an ARM’s rate can rise or fall, many people would rather have the certainty of a much simpler 15- or 30-year mortgage.
Mortgage Bankers Association
However, an ARM appears to be an attractive option right now, Boesel said, given its lower rate.
“A lot of first-time buyers might go for a 30-year mortgage rate, but ARM rates — adjustable-rate mortgages rates — are quite a bit lower than 30-year mortgage rates,” Boesel said. “So if a consumer felt comfortable with where their income would be at the time of a rate reset, they can look at an adjustable-rate mortgage payment loan.”
Article above was written by James Faris and published by Business Insider
Ocean City‘s expansive beach– block Tahiti Inn and its adjacent lots are up for sale
Travel & Tourism / By Ryan Mulligan Digital Producer, Philadelphia Business Journal
Ocean City’s Tahiti Inn Motel and Apartments, with its distinct tropical facade just steps from the boardwalk, is on the market for $13.5 million.
Along with two beach-block motel and apartment buildings, the listing includes two adjacent parking lots; altogether totaling about an acre of land in the popular Jersey Shore town. The two parking lots are located next to and across the street from the 53-year-old motel and together have an estimated market value of $6.5 million, according to the listing.
Located at 1125 Ocean Ave., the motel and apartments include 57 units — 42 motel rooms and 15 apartments — with a total of 69 bedrooms and 65 bathrooms on the property.
The three parcels sit in a hospitality zone, which allows for and prioritizes high-density developments like hotels, motels, restaurants, mixed-use and multifamily developments. Ocean City — which bills itself as “America’s Greatest Family Resort” — has a height limit restriction of ﬁve stories.
Kristina Doliszny, the listing agent and the vice president of Ocean City Realty Group, said she thinks the “highest and best use” for the property is to expand, renovate and build upon its current operations. She added that with the more and more residential construction happening over the years, being able to ﬁnd a room for a short-term stay in Ocean City has become increasingly diﬃcult and represents another opportunity for the buyer.
“The upside opportunity to anybody buying the property would be to expand upon the existing hotel and short-term stay operations in order to provide additional hotel rooms that system desperately needs,” Doliszny said.
The Tahiti Inn has been run by the Gallelli family since 1989, when it was bought by Mario Gallelli who died in 2020 after decades of overseeing the Ocean City property.
“They are very eager to identify a great buyer that they can pass on their hotel legacy to hopefully the next family,” Doliszny said. “It’s a very family-run business and they’re really hoping for the next family to step in and operate it and take the property to another level.”
Doliszny said the property is not priced to be sold as a tear down “nor does the family want to see it being torn down.”
The property sits in the heart of Ocean City, a short walk to some of the beach town’s most popular tourist destinations. It backs up to the boardwalk’s Surf Mall, a Manco & Manco location and two mini-golf courses. About a block away is Playland’s Castaway Cove amusement park.
Doliszny has experience dealing some of Ocean City’s iconic properties, and is following a similar template with the Tahiti Inn. She sold the Atlantis Inn in 2011, the Pavilion Hotel in 2017 and again in 2020 and the Scarborough Inn in 2014 and again in 2020.
In each case, Doliszny said the buyers bought the properties with similar visions of building on and improving current operations, rather than starting from scratch.
“That has culminated as a collective to improve the city of Ocean City overall because of so much capital investment into these properties and improving them and making them better, Doliszny said. “We’re trying to do the same thing with the Tahiti. We’re trying to procure a buyer who, just like, with the Pavilion, just like with the Atlantis Inn and just like with the Scarborough, someone who’s going to step in and purchase the property and improve upon it.”
For summer 2022, Tahiti Inn is charging weekly rates between $2,200 and $2,375 per apartment during the season’s peak weeks — from late June to late August. Nightly rates at the motel this summer during the same weeks are $178 to $185, not including extra fees and deposits.
Listing Details by Kristina Doliszny, Ocean City Real Estate Group, Keller Williams Realty Jersey Shore click here/linked here: Tahiti Inn Hotel For Sale, 1125 Ocean Ave Ocean City NJ 08226
Article Published in By Ryan Mulligan , Philadelphia Business Journal
Here is a link to the original story: Ocean City‘s expansive beach– block Tahiti Inn and its adjacent lots are up for sale
We had a fantastic year last year during the Covid Pandemic and we closed a large amount of properties.
This is the time to sell your property!! The market is RED HOT and buyers are limited to finding the property as there are at lease 25% more buyers than there are sellers and properties for sale.
You ask how the market is? Remember last year looking for Toilet Paper? Yes, its just like that looking for a property and being able to buy it without others paying more and taking your dream property. Call us today and we will show you how we can do this for you!!
Winter weather can be unpredictable, and while cold temperatures, high winds, ice and snow can cause serious damage to your home, there is another common danger that isn’t talked about as much – fires. With that in mind, we wanted to share some important tips to prevent winter house fires.
1. Clean your dryer hose! According to the National Fire Protection Association, U.S. firefighters respond to more than 14,000 house fires caused by dryers each year. Don’t forget to clean the lint filter after each use, empty or replace the hose, and regularly check the vent for blockage.
2. Inspect your fireplace! Clogged chimneys can also lead to house fires and can cause carbon monoxide poisoning. It’s important to schedule an annual fireplace inspection and professional chimney sweep.
Here are a few more quick tips:
1. Never use your oven to heat your home
2. Turn off portable heaters when leaving rooms or going to bed
3. Test your smoke alarms once a month
4. Keep anything that can burn at least three feet away from a fireplace or heater
5. Blow out candles when not in use
The Federal Reserve on Wednesday cut interest rates for the first time since the Great Recession took hold in 2008, though the move is not likely to deliver significant juice to an already favorable borrowing environment for home buyers. The federal funds rate, which is what banks charge one another for short-term borrowing, will now hover between 2% and 2.25%, according to news reports.
The Fed says its decision to lower interest rates, which comes after months of pressure from President Donald Trump, is designed to stave off the threat of an economic downturn. But it’s unlikely to translate into additional mortgage savings for many buyers. With the interest rate for a 30-year loan already hovering below 4%, the Fed’s move may be more meaningful for buyers with other types of financing, says Lawrence Yun, chief economist for the National Association of REALTORS®. “Many borrowers will benefit, especially those with adjustable-rate mortgages and commercial real estate loans,” Yun says. “The longer-term 30-year fixed-rate mortgages will see little change in the near future because they had already declined in anticipation of this latest move by the Fed.
“These low interest rates will partly help with housing affordability over the short-term. Both rents and home prices have been consistently outpacing income growth. The only way to mitigate housing-cost challenges as a long-term solution is to bring more supply of both multifamily and single-family homes to the market,” adds Yun.
Still, lower borrowing costs are helping buyers manage rising home prices. For example, buyers who spend $1,500 on monthly mortgage payments can afford to purchase a $402,500 home this year compared to $367,500 last year, when mortgage rates averaged 4.57%, according to realtor.com®. “Last year, buyers would have needed an additional $145 a month on top of the $1,500 to afford a $402,500 home,” says Danielle Hale, realtor.com®’s chief economist.
In some locales, buyers’ money can stretch even further. “An extra $35,000 in purchasing power, depending on where you are in the country, can really make a difference to buyers today,” Hale says. “It still counts, even with home prices up 6% nationally. That increase in purchase power is greater than the national price increase.”Source: “Realtor.com® Reports How Much More Home Buying Power There Is Today Thanks to Lower Mortgage Rates,” Forbes.com (July 30, 2019); “The Fed Just Cut Interest Rates. Here’s What That Means for You,” The New York Times (July 31, 2019); National Association of REALTORS®
Some investors are fearing that the recent action in the stock and bond markets is signaling a recession may be nearing. If that’s the case, there could be an unlikely market to hide out in this time: housing.
It was the center of the last crisis, but before that, housing prices tended to hold up and even rise modestly during an economic downturn as mortgage rates fell in tandem with interest rates. If history is any guide, the housing market could be the unlikely safe haven in the next recession once again.
The U.S. housing market has weathered all the recessions since 1980, with the exception of the Great Recession of 2008, Jefferies pointed out in a recent note. The FHFA U.S. house price index rose by an average of 7.4 percent in the year prior to the recession and prices rose an average of 2.7 percent from the start of the recession to the end, the note stated.
“Other than during the GFC (Great Financial Crisis), home prices have kept rising even during recessions, probably because rates fall, the vast majority of people retained jobs and household formation continues,” said Thomas J. Thornton, Jefferies’ head of U.S. equity product management in the note to clients on Saturday.
“This could be a particularly big cycle for household formation owing to the millennials,” he added.
The subprime mortgage crisis brought about the last recession in 2008, but the housing market has since roared back with better lending standards. Lower long-term interest rates also boosted housing demand.
Rates falling again
Rates started 2018 on the rise and seemed to be on course to march steadily higher until the recent sell-off in stocks. The yield on the 10-year Treasury note has fallen from its 2018 high of 3.25 percent reached on Oct. 9 to around 2.87 percent on Tuesday. With the stock market selling off on recession fears, investors have plowed money into Treasuries which is boosting their price and lowering yields. That, in turn, is helping lower mortgage rates, which just hit a two-month low.
And although the Federal Reserve has hiked rates eight times in three years, the benchmark rate is still well below the 4 percent level seen at the beginning of 2008, near the start of the crisis. Plus, Fed officials have expressed caution on the pace of future rate hikes.
Unlike 2008, the housing market is not being driven by homeowners that are the highly leveraged. In fact, the household debt to total income ratio is at the lowest in 15 years, said Ken Leon, director of equity research at CFRA.
“Because there’s a scarcity in inventory in housing market, it should keep prices stable and maybe modestly growing higher,” Leon said.
To be sure, home sales are slowing, with pending home sales in October dropping 2.6 percent. But with mortgage rates coming back in, there are signs of stabilization.
As for the homebuilding stocks, they can be a volatile group because of their small size, but have lately shown signs of bottoming and are even outperforming the market.
The iShares U.S. Home Construction ETF (ITB), which counts D.R. Horton, Lennar and NVR among its top holdings, is off by 30 percent this year as the shares got hit during the first three quarters of 2018 on the rise in mortgage rates. But in the last month, the ETF is only down 1 percent while the market has gotten hit by 5 percent.
“Strength in homebuilders probably isn’t just a fluke,” Jefferies’ Thornton said.
The sector’s resilience is coming from a healthy consumer base, which is expected to spend more on remodeling and renovation, Leon added.
“There are over 126 million U.S. households that are ripe for home improvement. The consumers are enjoying job growth and higher income, they are going to spend money on the existing houses,” he said.
There are many great South Jersey area homes for sale. Click here to perform a full home search, or if you’re thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today’s market.
You may also call us at (609) 412-5547 for a FREE home buying or selling consultation to answer any of your real estate questions.
Hey all, I hope your enjoying your summer! I have some tips for those of you who are looking to sell your South Jersey vacation home. Most importantly, don’t wait until summer is over. Many homeowners wait until summer ends before putting their home on the market.
Here’s why that’s a bad idea:
1) The spring selling season wipes out our inventory, leaving no homes to sell to interested buyers in the summer.
2) There are thousands of potential buyers in the summer months, making it a good time to expose your property.
3) Inventory goes way up in the fall, meaning there won’t be any buyers paying top dollar because no one wants to carry the property to next spring to get the income.
There are many reasons you may not want to put your home on the market during the summer months. Whether you don’t want to bother your renters or you simply want to collect summer income, there are many good reasons selling your home in the summer may not interest you. However, there is a way to put your home on the market in the summer months without losing summer income and without hassling your tenants.
1) We show your property during the change-overs: From 10 am-2 pm on Saturdays. Your tenants will not be bothered and interested buyers can see the property during peak season.
2) The summer market is as strong as the spring: With so many people flooding South Jersey during the most beautiful time of the year, tenants often ask about purchasing property upon check out.
3) Sell in the summer, close in the winter: You can still collect income from summer renters, and the deal is closed by the end of the year.
Selling in the summer is the best way you can get the maximum price for your home, keep your income, and minimize expenses. The important thing to remember is that today’s tenants are tomorrow’s buyers!
If you have any questions,
please call us at (609) 412-5547
We’d love to help!
Kristina Doliszny and Robert Doliszny
South Jersey Real Estate Team,
Ocean City Real Estate Group
Keller Williams Realty – Jersey Shore
Click Here for Link to NJ.Com article