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
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