Atlantic City Developer's Luxury Homes Approach $1 Million as Second Phase Nears Completion

Keith Groff says his first eight-home development near the Absecon Lighthouse is nearly sold out, with additional homes expected to be completed by Thanksgiving and plans underway for a third phase.

ATLANTIC CITY, N.J. — A residential development near the Absecon Lighthouse is approaching a significant milestone as Atlantic City developer Keith Groff prepares to complete the second phase of his luxury townhouse project, with one home already selling for nearly $1 million.

Groff discussed the progress of his Southeast Inlet development Monday, Sept. 21, during an appearance on Off The Press with Scott Cronick on News Talk 1400 and 92.3 WOND. Assemblyman Don Guardian, R-Atlantic, served as guest host.

The developer said his first phase, consisting of eight homes, is nearly sold out, while construction on seven additional homes is expected to be completed in stages before Thanksgiving.

Groff also revealed plans for a third phase that would extend the development farther along the landscaped park near the lighthouse.

From $625,000 to Nearly $1 Million

Groff said his original development began with eight homes, but he initially had concerns about whether buyers would be willing to pay premium prices for newly constructed housing in Atlantic City's Southeast Inlet.

He had previously owned homes in Atlantic City and had experience renting properties through Airbnb.

That experience gave him confidence that the homes could generate rental income if he was unable to sell them.

"We always knew at least that if we couldn't sell them and make money, we could absolutely Airbnb them and be very successful," Groff said.

The developer said he was pleased when buyers began purchasing the homes before construction was complete.

His first sale was for $625,000, followed by another at $675,000.

A subsequent home sold for $775,000, and another sold in June for $820,000, according to Groff.

As demand increased, he continued upgrading the properties with premium materials, high-end fixtures, additional bedrooms and energy-efficient features.

"So as I was building them, the market kept going up and up and I kept building to that market," he said.

The final available home from the first phase was recently listed for $899,000.

Groff said the property is fully furnished and equipped with solar power.

He described the home as having no anticipated gas or electric bills, although actual utility expenses would depend on energy consumption and the property's solar system.

The $899,000 figure is the asking price, not a completed sale.

Seven More Homes Expected by Thanksgiving

Construction on the second phase began May 19.

Groff said the project was approximately four months into construction at the time of Monday's interview and that the first four homes could be completed by Halloween.

The remaining three homes are expected to be finished by Thanksgiving.

"Phase 2, we started May 19th, so we're four months into it, and we should be done within a month or two tops," Groff said.

"The first, the back four will probably be done by Halloween, and then the front three will be done by Thanksgiving."

The developer said the new homes are expected to be priced between $799,000 and $849,000, with premium end units commanding higher prices.

One end unit facing the Absecon Lighthouse has already sold for just under $1 million, according to Groff.

Guardian, who lives in the neighborhood, praised the design of the new homes, including their balconies and outdoor spaces.

The development is situated near the Absecon Lighthouse and a landscaped public park, providing views of the surrounding neighborhood and Atlantic City's skyline.

Third Phase Planned Near Lighthouse

Groff said he hopes to continue building after completing the current phase.

His proposed third phase would extend from Vermont Avenue to Rhode Island Avenue, continuing along the park near the lighthouse.

"Lord willing, Phase 3 will be from Vermont Avenue to Rhode Island Avenue, just continuing, again, right down that line of the park," he said.

The proposed expansion would be located on the block where the lighthouse stands, between the lighthouse and the parking garage associated with the former Lighthouse Plaza property.

Groff said his priorities for the next six months include completing Phase 2, acquiring additional land and preparing for the proposed third phase.

He also hopes to take a break during the winter holidays after completing the current construction work.

No construction start date or completion timetable has been announced for Phase 3.

Developer Sees Opportunity in Atlantic City's Housing Market

Groff said he believes the success of his initial development demonstrates that buyers are willing to invest in newly constructed, higher-priced housing in Atlantic City.

He also pointed to the variety of residential options available in the resort, including properties priced substantially below the luxury homes being built near the lighthouse.

According to Groff, some newer three-bedroom homes in neighborhoods such as Millennial Square, the Cove and Harbor Point can be found in the $250,000 to $300,000 range.

He contrasted those prices with the higher costs of purchasing comparable Shore properties in neighboring communities.

Groff said his goal is to continue developing and selling homes rather than building a small number of properties every several years.

Guardian credited Groff with helping demonstrate the potential for additional private residential investment in the Southeast Inlet.

The assemblyman also discussed the potential for new market-rate housing to expand Atlantic City's property tax base.

Groff said the success of his development has encouraged him to continue investing in the neighborhood.

"So I think right now, all of this housing that you're going to see in the future is really the start," Guardian said, crediting Groff with taking an early financial risk on new construction in the neighborhood.

With the second phase approaching completion and plans for a third phase taking shape, Groff's development is among several residential projects bringing new housing to Atlantic City's Southeast Inlet.