OCEAN CITY – A developer whose firm has a history of investing in Ocean City has agreed to pay over $6.6 million for the seven-story building in downtown Ocean City, beating out a bid from Icona, which hoped to convert it into a hotel.
The building, at 801 Asbury Ave., was often referred to as the Crown Bank building due to the bank having been established on the first floor of the structure. The owner of the building, who was not named in news reports, filed for Chapter 7 bankruptcy in May 2021.
According to a published report from NJ.com, Ocean City had considered trying to buy the building, but the price was out of its range. The Herald published information in late November 2022, saying the Icona owners would have invested $15 million to $20 million to rehabilitate the building and transform it into a hotel. That would have required a zoning change by the city.
On Jan. 18, U.S. Bankruptcy Court Judge Andrew Altenburg approved a plan by Ocean City Crown Holdings LLC, which is owned by real estate investor Raj Khatiwala, to buy 801 Asbury Ave., NJ.com reported.
Khatiwala is the co-founder and managing partner of the real estate investment firm Eclat Investments, based in New York and New Jersey, NJ.com said.
The building was home to a small number of businesses, including the offices of the Ocean City Sentinel. The building’s property includes parking lots on Central Avenue, plus some commercial lease property in Estell Manor.
Although no plans have been announced for the historic building, the new owner has apparently vowed to “bring it back to life,” saying his firm has a history of redeveloping buildings no one else wants.
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