Atlantic City Entering New Phase of Development as Major Builders Prepare Projects, Rutala Says

From Gardner's Basin townhouses to workforce housing and the former Trump Plaza property, development consultant Jim Rutala says national investors are increasingly looking at Atlantic City.

ATLANTIC CITY, N.J. — Atlantic City may be entering a new phase of redevelopment, with larger, more established real estate companies preparing projects across the resort after years of investment by smaller developers.

That's the assessment of development consultant Jim Rutala, who says growing interest from major investors could help reshape Atlantic City's housing market, neighborhoods and commercial corridors.

During an October 22 appearance on The AC Mike Lopez Show on News Talk 1400 & 92.3 WOND, Rutala outlined several residential and commercial projects that he said are moving closer to construction.

The discussion came one day after confirmation that South Jersey businessman George Norcross, his family and investment partners had purchased the former Trump Plaza Hotel and Casino property on the Boardwalk.

Rutala believes that acquisition is part of a larger shift in how developers view Atlantic City.

"There's a change happening," Rutala told Lopez.

He said smaller developers who invested in Atlantic City when the market was less certain deserve considerable credit for helping create the conditions attracting larger companies.

"For the last several years, we've had a number of small developers who are really, I call them risk takers," Rutala said.

"They came into Atlantic City, and they've invested, they've gotten some support from the state on various projects and from the city. And they're building."

Rutala said those investments, including projects in the Orange Loop and other neighborhoods, helped establish the groundwork for additional development.

"And we're into Phase 2 right now, which is really institutional developers."

Norcross Purchase Could Transform Former Trump Plaza Site

The acquisition of the former Trump Plaza property has generated considerable interest because of its prominent location along the Boardwalk near Jim Whelan Boardwalk Hall.

The former casino closed in 2014, and its main hotel tower was demolished in February 2021.

The property remained largely undeveloped following the demolition.

On October 21, Atlantic City Mayor Marty Small Sr. confirmed that Norcross, his family and investment partners had acquired the site from interests associated with billionaire Carl Icahn.

No specific redevelopment plan has been announced.

Rutala described the location as one of Atlantic City's most important development opportunities.

"It's really Times Square of Atlantic City," he said.

He also pointed to the site's location within a federal Opportunity Zone, which can provide certain tax advantages for qualifying investments.

Rutala believes the involvement of prominent investors could encourage additional interest in the city.

"It's just a tremendous opportunity," he said.

The former Trump Plaza property occupies a highly visible location near the end of the Atlantic City Expressway and the center of the Boardwalk.

Mayor Small has said the site will not become another casino, but the eventual use of the property has not been disclosed.

Potential development will depend on the owners' plans, regulatory approvals, financing and market conditions.

Kushner Project Near Gardner's Basin Could Move Forward

One of the residential projects Rutala highlighted involves land near Gardner's Basin that has been associated with developer Kushner.

Rutala said the company is approaching the construction stage of a proposed development involving approximately 180 high-end townhouse units.

"They are very close," Rutala said.

"We spoke to them yesterday. They're very close to starting construction. They have a few minor permits that they need to get, and they're ready to go."

Rutala compared the concept to townhouse development in Point Pleasant, where new residential construction has helped change the character of certain waterfront areas.

The Gardner's Basin project would represent another substantial investment in Atlantic City's residential market.

However, Rutala's comments do not establish that construction has formally begun.

The exact schedule remains dependent on the developer obtaining the necessary approvals and moving ahead with its plans.

K. Hovnanian Project Approaching Vertical Construction

Rutala also discussed activity involving national homebuilder K. Hovnanian.

He said work has advanced to the point where construction could soon move beyond site preparation and foundation work.

"They have all their pilings in. They have their permits," Rutala said.

He predicted that vertical construction could begin within weeks, with marketing of the residential units potentially following in the first or second quarter of 2027.

That timeline was Rutala's assessment as of October 22, rather than a construction schedule independently confirmed by the builder.

Rutala cited K. Hovnanian as an example of the type of established national company now showing confidence in Atlantic City's housing market.

"These are major national developers who are not speculators," he said.

"These are folks that make their money building and selling their product."

Workforce Housing Planned for South New York Avenue

Not all of the projects Rutala discussed involve luxury residential development.

He also highlighted plans by Philadelphia-based Odin Properties to redevelop an existing building at 1 South New York Avenue.

Rutala said the project is expected to create approximately 56 workforce housing units.

"It's been totally demolished on the inside, and now they're starting to do the construction," he said.

He also said the developer intends to restore the former YMCA building on Pacific Avenue.

"They're committed, and they're moving forward on their construction," Rutala said.

Workforce housing has become an increasingly important issue in Atlantic City, where many residents depend on employment in casinos, hospitality, restaurants and other service industries.

The cost and availability of housing remain significant concerns for local workers.

Rutala's comments suggest that some developers are pursuing projects intended to serve a broader range of residents, although rental rates, eligibility requirements and affordability restrictions for the proposed units were not detailed during the interview.

Waterfront Development Behind Golden Nugget

Another project discussed by Rutala involves developer Wasseem Boraie and waterfront property behind Golden Nugget.

Rutala said the project has been under consideration for years but has recently advanced through the permitting process.

"He just got permits to build behind the Golden Nugget on the waterfront," Rutala said.

"He’s been working on this for years. It's fully permitted now."

Rutala said the project includes both mid-rise residential construction and townhouses.

He also indicated that wetlands-related concerns had been addressed and that the development had received a permit under New Jersey's Coastal Area Facility Review Act, commonly known as CAFRA.

Those permit claims warrant confirmation through state and local records, and Rutala did not provide a construction start date.

If the project advances, it would add to the growing concentration of residential development proposed for Atlantic City's waterfront and Marina District.

Larger Investors Taking Notice

Rutala said the city's redevelopment activity is no longer limited to individual residential projects.

He pointed to the Ilitch family's ownership interests in Ocean Casino Resort and its broader business holdings, which include Little Caesars and professional sports franchises in Detroit.

Rutala said the family's involvement could lead to additional investment in Atlantic City.

He also discussed continuing investment by developer Bart Blatstein, whose projects include the Island Waterpark at Showboat.

Other potential transactions and development opportunities were mentioned during the interview, including the Wyndham property.

Those discussions remain separate from confirmed construction projects, and not every investment possibility Rutala described has reached a final agreement.

Still, he believes the broader pattern is significant.

Rutala said Atlantic City's growing appeal to larger developers reflects improvements in the city's development environment and a belief that the market can support additional investment.

Property Assembly Remains an Important Challenge

One of the obstacles historically facing Atlantic City redevelopment has been the difficulty of assembling multiple parcels into sites large enough for substantial projects.

Rutala said city officials and the Casino Reinvestment Development Authority have worked to streamline that process.

He described a system in which publicly owned parcels needed for larger redevelopment projects can be surveyed, appraised and considered for sale at appraised value.

"And it works," Rutala said.

"You know, it allows people to assemble property. Assembling property has always been a big issue in Atlantic City."

Rutala argued that greater coordination among developers, city government and state agencies has made the resort more attractive to investors.

Any individual property transfer, however, remains subject to the applicable legal requirements and approval procedures.

Convention Center Improvements Could Support Growth

Rutala also believes Atlantic City's future depends on expanding its convention and meeting business.

He said the resort needs a headquarters hotel with approximately 500 rooms to compete more effectively for larger national conventions.

He also called for improvements to the Atlantic City Convention Center and greater use of Boardwalk Hall.

"The convention center is not meant to be a moneymaker," Rutala said.

"But it brings a lot of money into the city and into the region."

Rutala argued that convention visitors support jobs at hotels, restaurants, casinos and other businesses, particularly during periods when traditional leisure tourism is slower.

He said Atlantic City has the opportunity to expand that business but must maintain facilities capable of attracting major events.

The headquarters hotel remains a proposal, and Rutala did not announce a financing package or construction timetable.

Optimism Meets the Reality of Development

Rutala's outlook is decidedly optimistic, but the projects he discussed are at different stages.

Some involve confirmed property transactions. Others are in permitting, site preparation, interior construction or preliminary planning.

And major developments can face delays involving financing, construction costs, regulatory approvals and changing market conditions.

For Atlantic City, the ultimate measure of progress will be how many announced projects become completed buildings, occupied homes and operating businesses.

Rutala believes the city is better positioned to reach that point than it has been in years.

He credits the smaller developers who entered the market first, along with public agencies and city officials who have worked to encourage investment.

Now, he says, larger companies are beginning to follow.

"So a lot of the pieces are in place now," Rutala said.

For a resort that has spent years trying to diversify its economy beyond casino gambling, that could represent an important turning point — provided the proposed investments move from plans to construction.