WEST CAPE MAY — When the historic Moffitt House, 715 Broadway, built six years before the birth of America in 1776, was demolished by its owner March 15, 2005, it caused outrage in the borough.
Now, three unfinished residential units stand on the property. There is mold growing on the vinyl siding, only the bare bones of outdoor decks visible and missing garage doors. A source told the Herald it was likely the condos would ultimately be demolished in a few years if mold takes over the property.
The owner of the property, Donald Bailey of LTB Properties L.L.C. of Wallingford, Pa., owes $1.6 million to the bank from a combination of buying and demolishing the Moffitt House and partially constructing the new units, said the source. He paid $500,000 for the Moffitt House in 2005.
The bank has not filed Lis pendens for mortgage default which is normally done after a mortgage has gone unpaid for three consecutive months, said the source. An offer of $700,000 was made for the property but the bank wanted another $500,000 from the owner.
The source said the bank was looking for an offer of $1.3 million to close the deal.
The demolition of the Moffitt House took place despite preparations made to move the 235 year-old house to a nearby property. Two weeks before the demolition, preservationist Gwen Goodwin contacted Bailey requesting time to allow her to find someone interested in relocating the house.
Goodwin said Bailey gave her two weeks to find an interested party to take the house, which she accomplished in nine days. Joy Bennett Engelbert, who owned a lot at 145 York, received bids from house movers, a tree service, utility companies and from a contractor to build a new foundation on her property for the Moffitt House.
Goodwin said Bailey later reneged on the agreement after everything was in place to move the house four blocks to a new site.
The Moffitt House was operated as a bed and breakfast until three years before its destruction and for one year as a private residence before the demolition contractor arrived on a March morning.
The new buildings have not been declared condominiums and the property is listed as a three-family home, according to real estate agent Brian Groestsch Jr. of Century 21, Gilmartin and Company of Cape May. He said the property is not bank owned but still owned by LTB Properties L.L.C.
The units are being offered, “as is,” said Groestsch. He said the property is being marketed as a short sale, which would require the participation of the bank to permit the sale.
He said the intent was to condo the units and sell them separately but that process has not been completed.
“The asking price is $750,000 but again that would require the approval of the seller’s lender,” said Groestsch.
He said to purchase the property with the participation of the lender in a short sale would require quite a bit more money. Groestsch said there has been interest in the property but based on the acquisition cost of the Moffitt House, the planning and construction and holding costs of the debt and the improvements its “grown to an amount that is above where the market is today.”
He said the units were near completion when the project stopped. They require finish items such as kitchens, bathrooms and miscellaneous fixtures plus site work around the property such as grading, paving and construction of a retention area for storm water.
The Moffitt house was torn down in March 2005 and the real estate market peaked in June 2006, said Groetsch.
“In 2005, the sky was still the limit,” he said.
The property has been marketed by at least six real estate agencies.
As a result of the demolition, West Cape May established an historic preservation commission (HPC). Elan Zingman-Leith, chairman of the borough’s HPC said it seems when something important is torn down, it often remains as a parking lot for generations.
He credited the West Cape May History Committee for conducting an accurate survey of historic properties in the borough. Zingman-Leith said the HPC has seen very few applications for demolitions. It has mainly seen applicants seeking to renovate their homes.
He said HPC has been very thorough in its research.
Attorney Peter Tourison, who represented Bailey before the borough’s zoning board, told the Herald that Bailey lost the project years ago. Tourison said banks sometimes foreclose on a property but do not record the sheriff’s sale deed to reduce their liability.
He said the project stopped before approvals as a condominium were received.
The Moffitt House was constructed without nails using Mortise and Tenon joints where one beam is milled into the end of another. At the time of demolition, the house had most of its original wood floors, mantles and doors in place.
Those items were crushed and hauled away.
Stone Harbor – Could the North Wildwood spouter tell us what kind of company he refers to that has already gotten tariff increases. Waiting for the reply spout!
