500 Ocean, a new townhome community in Seaside Heights, N.J. (File Photo)
Seaside Heights recently recorded a record-breaking sales price for a condominium in town, as a building boom continues that still holds a few more affordable gems amidst rising prices.
The record-breaking sale of $1,849,000 represented one of the first purchases at the prestigious 500 Ocean complex, a 10 unit development that replaced what had long been a gravel parking lot near Webster Avenue. With views of the ocean just across the street, the unit is the “premiere” pick of the litter, said Mike Loundy, of Seaside Realty, who brokered the sale.
“It’s definitely a record sales price for a single-unit sale in Seaside Heights that we’re pretty excited about,” he said. “They are amazing, four bedroom, four and a half baths that are all penthouses.”
While the top-priced unit represented a corner-position with front-facing views of the Atlantic Ocean, other units in the same complex are being offered at prices from $1.1 million. The rising real estate values have proven to be a boon to property owners as well as the borough itself, which has spent more than a decade recouping losses to its ratable base from Superstorm Sandy. The borough began an aggressive redevelopment path after the storm, looking to build a positive reputation for the town while replacing aging motels and parking lots that had fallen into disrepair. While seven-figure prices reflect new territory, buyers are finding the borough’s rental market supports their investments, Loundy said.
500 Ocean, a new townhome community in Seaside Heights, N.J. (File Photo)
500 Ocean, a new townhome community in Seaside Heights, N.J. (File Photo)
“If the owner decides they want to rent the property in the summer, and maybe a couple of spring weeks, the income derived would come very close if not fully cover the annual carrying costs of the year,” he explained, adding that a building like 500 Ocean will yield a rental price of about $8,000 per week during the peak of summer.
“We have some very aggressive banks that fund them,” he said. “This one was funded by a local lender, and there is plenty of money out there. In the higher-priced units, the owner is offering 4.95 percent interest rate introductory financing.”
Coastal Edge, Seaside Heights, N.J. (Photo: Shorebeat)
Many of the newer developments in Seaside Heights are also sparking interest from investors who were attracted by tax abatements built into the redevelopment projects. One of the developments that has drawn the most attention – both for its striking architecture as well as its once-famous position in town – is Coastal Edge, a 36-unit building that replaced the Karma nightclub on in the center of the Boulevard business district. Coastal Edge has largely served as the centerpiece of the borough’s effort to revitalize the Boulevard into a district that mixes chic retailers and restaurants through mixed-use development. Coastal Edge’s units come with a 15-year tax abatement for buyers, with units starting in the upper $700,000s.
“The building is complete, and we have sold about 10 of these units already without really rolling them out yet,” said Loundy.
Like many of the newest development efforts in town, Coastal Edge – located at the Boulevard’s intersection with Hamilton Avenue – was designed by MODE Architects, a firm that has gained a great deal of prestige at the Jersey Shore and recently opened a second office in Boca Raton, FL. The building was designed with luxury in mind, reminiscent of amenity-filled buildings in major urban resort areas. It includes an indoor heated pool, sauna, business center, game room and a large observation deck on the roof with ocean and bay views. An indoor gym is part of the property, as well, with accessible elevator access from ground to roof levels.
Renderings of the future Coastal Edge property in Seaside Heights, N.J., replacing the famed ‘Karma’ nightclub. (Credit: MODE Architects)
Renderings of the future Coastal Edge property in Seaside Heights, N.J., replacing the famed ‘Karma’ nightclub. (Credit: MODE Architects)
Renderings of the future Coastal Edge property in Seaside Heights, N.J., replacing the famed ‘Karma’ nightclub. (Credit: MODE Architects)
Coastal Edge, Seaside Heights, N.J. (Photo: Shorebeat)
“Outside the gym area is a pet wash area,” said Loundy. “It’s unique, a little quirky, and it’s great.”
Up the Boulevard, the Coral Sands motel property near the intersection with Hancock Avenue has been replaced by a new property that pays homage to its historic name. Built by MAC Developers, condominiums in the 15-unit complex start at $699,000 and – like most of the other new properties being built in town – have elevator access, internal parking areas, and the all-important five year tax abatement.
“That property is about half sold out,” said Loundy.
The property at 1010 Boulevard, Seaside Heights, replacing the Coral Sands Motel. (Photo: MODE Architects)
The property at 1010 Boulevard, Seaside Heights, replacing the Coral Sands Motel. (Photo: MODE Architects)
The property at 1010 Boulevard, Seaside Heights, replacing the Coral Sands Motel. (Photo: MODE Architects)
The property at 1010 Boulevard, Seaside Heights, replacing the Coral Sands Motel. (Photo: MODE Architects)
The property at 1010 Boulevard, Seaside Heights, replacing the Coral Sands Motel. (Photo: MODE Architects)
Closer to the beach, “The Hamilton” replaced yet another gravel parking lot. Located just west of Ocean Terrace across the street from another modern, multifamily complex, the building features a trendy, “urban coastal” architecture, a striking sign to capture the attention of visitors, and focused on a luxurious interior.
“These units have high-end finishes and consist of one-level flat, and townhome-style units,” said Loundy. “Many of the units have ocean views from inside, which is a great added bonus.”
The Hamilton, located at 33 Hamilton Avenue, has units starting at $699,000 with a five-year tax abatement.
Descriptions of new properties in Seaside Heights could conceivably go on for pages upon pages. The 1500 Boulevard property has replaced the former Seabreeze Motel; the 1212 Ocean project on Ocean Terrace represents another ultra-modern property that replaced an aging motel; and work on a major, 24-unit development by K. Hovnanian is underway now – likewise, replacing the former Offshore Motel. Meanwhile, Loundy said, there are about 140 new single-family homes scattered around the borough that have replaced aging properties.
A 24-unit townhome community proposed in Seaside Heights by builder K. Hovnanian. View from Lincoln Avenue. (Courtesy: Mike Loundy)
According to Loundy, the explosion of the Seaside Heights real estate market was sparked by an odd event: the construction of a CVS store at Hiering Avenue on a property that housed an old office and some vacant land.
“We subdivided off what was, at the time, my old office and sold that to CVS,” he said. “The creation of a major drug store brand here in Seaside has turned out to be a big deal for us as we go forward.”
After weathering the 2008 financial crisis and the MTV “Jersey Shore” era, “the Sandy side of it really kicked it in” in terms of spurring major levels of new development.
“There was a conscious decision after Sandy not to allow non-confirming properties that were damaged during the storm to rebuild as they were,” he said. “They forced less density, and that really began the trend of new resources coming in. A lot of people either sold to developers or rebuilt themselves. Some people were unhappy that they could not rebuild those non-conforming properties, but it made a big difference with the reduction in density, and creating the beginning of what we now see.”
What were once lots overstuffed with multiple deteriorating properties overbuilt on 20-by-100 lots became the places where modern buildings, conforming to safety and flood codes, thrived in their place.
“We had the first finished boardwalk after Hurricane Sandy,” recalled Loundy, who had also served a stint as the borough’s director of improvements.
With prices continuing to rise, Loundy said the investment potential of Seaside Heights is coming into its own similarly to Asbury Park and other Shore communities that have been revitalized.
“Seaside Heights is a terrific city to be a resident, an investor or a landlord,” he said. “The city wants to help you be successful in every way – they don’t restrict seasonal rentals, they add amenities and services. It has become a terrific location for vacationers with our new beach, new boardwalk, new water park, new amusement pier, along with some new businesses and restaurants that are catering to our summer clientele.”
“Somtimes,” he said, “people end up staying here and making it their home as well.”
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