After Years of Problems, Ocean City's Seaspray Condos Finally Coming Down

Demolition of the long-troubled complex clears the way for 43 luxury condominiums as part of a broader transformation of the 34th Street gateway.

OCEAN CITY — A decades-old condominium complex that became an increasingly visible problem at one of Ocean City's busiest entrances is finally coming down.

Demolition began Wednesday morning at the former Seaspray condominiums at 34th Street and Bay Avenue, ending a yearslong saga that included structural concerns, residents being forced from their homes, litigation among owners and eventually a court-ordered sale.

In its place, a developer plans to build a 43-unit luxury condominium complex called The Drift at Salt Meadows.

Mayor Jay Gillian and other officials were on hand Wednesday as an excavator began tearing into the old buildings. Demolition is expected to take about four weeks.

The work had initially been scheduled to ceremonially begin Monday but was postponed following the weekend nor'easter, which brought flooding and significant coastal damage to parts of Cape May and Atlantic counties.

For Ocean City, however, Wednesday's demolition represents much more than the removal of an old building.

The Seaspray property has been a source of concern for years.

“Thank God. This has been going on since 2005,” Councilman Keith Hartzell said last year as City Council considered the redevelopment plan for the site.

From Motel to Condos to Vacant Property

The buildings date to around 1955 and originally operated as a motel before being converted into condominiums around 1981.

Problems eventually mounted.

Residents were forced out in May 2023 after the New Jersey Department of Community Affairs directed Ocean City's construction official to declare the property unsafe.

An engineering report later indicated the buildings could be occupied again, but the problems were far from over.

On April 17, 2024, the complex was again declared unsafe after concrete fell from an exterior stair landing and officials discovered that required repairs had not been completed.

What followed was a dispute among condominium owners over the future of the property. Some wanted to repair the buildings, while others favored selling the site. Engineers representing different interests reportedly disagreed over whether rehabilitation was feasible.

Eventually, a court-appointed receiver was authorized to sell the property.

The HOW Group, a Conshohocken, Pennsylvania-based real estate company, purchased the site in late 2025 for approximately $5.96 million. The property had previously been offered for sale for $7 million.

Now, after years of uncertainty, the old Seaspray is disappearing.

43 Luxury Condos Planned

The HOW Group plans to replace the complex with The Drift at Salt Meadows, a 43-unit residential development overlooking the bay and surrounding marshes.

Plans call for 33 two-bedroom units and 10 three-bedroom units spread across three residential floors above covered parking.

The development is also expected to include a swimming pool and cabanas, fitness center, rooftop lounge, putting green, outdoor cooking areas, electric-vehicle charging stations and a dog-washing area.

Developers also say the project will feature Ocean City's first green roof.

The two-bedroom units are expected to exceed 1,200 square feet, while three-bedroom residences are planned at roughly 1,700 to 1,900 square feet.

Construction is expected to begin during the first quarter of 2027, with completion targeted for 2028.

Earlier estimates placed two-bedroom units in the mid-to-upper $700,000 range and three-bedroom units around $900,000, but those figures were preliminary. Updated pricing is expected to be announced later this fall.

City Changed Planning Rules for Redevelopment

Getting from the abandoned Seaspray complex to the proposed new development required action by Ocean City.

The property was located within the city's 34th Street Gateway Zone, an area where planning rules emphasized commercial development.

City Council ultimately designated the Seaspray property as an area in need of rehabilitation and approved a redevelopment plan allowing a residential project of up to 43 units.

City planning documents described the redevelopment as a way to eliminate deteriorated and vacant conditions while encouraging new investment at a prominent entrance to Ocean City.

The Planning Board subsequently considered plans for 43 residential units at the property.

Developer John Pack said his company worked with Ocean City officials on the appearance of the project, including reviewing examples of architectural styles city leaders believed would be appropriate for such a prominent location.

“I think it will be a good representation of what the city wants as their gateway coming in,” Pack said Wednesday.

Part of a Much Bigger 34th Street Transformation

The redevelopment comes amid millions of dollars in public improvements surrounding the 34th Street entrance to Ocean City.

Cape May County recently completed a roughly $5.8 million reconstruction of 34th Street that included drainage improvements and raising portions of the roadway to reduce flooding vulnerability.

Ocean City is also moving ahead with an approximately $8 million reconstruction of Sandcastle Park between 34th and 35th streets.

Plans for the park include six tennis courts, three pickleball courts, two basketball courts, a larger playground, synthetic-turf athletic field, restrooms and a small outdoor stage.

Together, those projects and the redevelopment of the Seaspray property are dramatically changing an entrance to Ocean City that has grown increasingly important over the years.

“Years ago it was a sleepy entrance into the city and now it's a major artery,” Fourth Ward Councilman Dave Winslow said.

The 34th Street entrance is generally considered the city's second-busiest gateway, behind the Route 52/Ninth Street entrance.

For years, motorists arriving there were greeted by the aging Seaspray complex.

By Wednesday morning, that view had begun to change.

After structural problems, evacuations, litigation and years of debate over what should become of the property, the excavators finally moved in — clearing the way for another major piece of Ocean City's changing 34th Street gateway.