Construction Begins on $22.5 Million Atlantic Lofts as Atlantic City Housing Boom Builds

ATLANTIC CITY — It has been a big week for new housing construction in Atlantic City.

Just days after K. Hovnanian Homes broke ground on 38 new waterfront townhomes in the Inlet, construction is now underway on a $22.5 million project that will transform a long-vacant historic building into 56 new apartments.

Philadelphia-based Odin Properties has begun preliminary construction on Atlantic Lofts, an extensive rehabilitation of the eight-story Schwehm Building at 1 S. New York Ave.

The project will convert the century-old building into 56 loft-style apartments, ranging from approximately 350 to 900 square feet, while adding 2,741 square feet of ground-floor retail space.

An official groundbreaking ceremony is planned for September, but work at the site has already begun.

Taken together with the K. Hovnanian project that broke ground Wednesday, the two developments will add 94 new housing units to Atlantic City — and provide tangible evidence of a residential construction push that city officials have been predicting for months.

Two Groundbreakings, Two Different Neighborhoods

On Wednesday, K. Hovnanian Homes officially broke ground on the Terraces at Absecon Inlet, a 38-townhome development at Pacific and New Hampshire avenues, steps from the beach and Boardwalk.

The development marks the national homebuilder's return to Atlantic City after several years away.

The four-story townhomes will feature approximately 1,848 square feet of living space with three bedrooms, three-and-a-half bathrooms, two-car tandem garages, open-concept living areas and upper-level balconies.

The first phase will include five buildings, a furnished model home and several homes expected to be available for quick move-in. The first homes are expected to be delivered as early as summer 2027.

K. Hovnanian Division President Nikki Mallozzi said at Wednesday's groundbreaking that the company sees momentum building in Atlantic City.

“After many years away from Atlantic City it feels great to say we're back,” Mallozzi said.

She pointed to new residential development and continued investment as signs of “new energy” in the city.

Now, only days later, another long-discussed residential project is moving forward.

Historic Schwehm Building to Become Atlantic Lofts

The Atlantic Lofts project takes a very different approach to adding housing.

Rather than building from the ground up, Odin Properties is taking a long-vacant piece of Atlantic City's architectural history and putting it back into use.

The Renaissance Revival-style Schwehm Building dates to the 1920s and has sat vacant for years at the corner of Atlantic and New York avenues.

Plans to convert the building into apartments have been in development for several years. The Casino Reinvestment Development Authority approved the 56-unit conversion in 2022.

The project is supported by up to $8 million in New Jersey Economic Development Authority State Historic Tax Credits. The NJEDA previously put the overall investment at $22.5 million.

In addition to the apartments and retail space, plans include a fitness center, bicycle storage and a resident package room.

“By restoring a prominent, long-vacant corner property like the Schwehm Building, we are preserving Atlantic City's rich architectural history while delivering top-tier housing options as we join other developers in creating a new neighborhood in the Orange Loop area,” Odin Properties founder and CEO Philip Balderston said.

“This revitalization of a more than century-old building continues our mission to create design-forward high-quality housing at an attainable price,” Balderston said.

From Plans to Construction

Perhaps the most significant aspect of this week's developments is that both projects have moved beyond renderings, approvals and announcements.

Construction is actually beginning.

Atlantic City has seen numerous residential projects proposed in recent years, but the K. Hovnanian and Odin developments represent two very different private developers simultaneously moving forward with substantial housing investments.

They are also targeting different parts of the city and different types of residents.

K. Hovnanian is building new, for-sale waterfront townhomes in the Inlet.

Odin is creating smaller rental apartments through the adaptive reuse of a historic building near the Orange Loop.

Atlantic City Mayor Marty Small pointed to the broader development pipeline during Wednesday's K. Hovnanian groundbreaking.

“This is just the first shoe to drop, and there are many more groundbreakings to come,” Small said.

It took only a matter of days for another project to reinforce that point.

Odin Has More Housing Planned

Atlantic Lofts isn't Odin's only major Atlantic City project.

The company is also restoring the long-vacant former YMCA at 60 S. Carolina Ave., which it acquired from the CRDA.

According to Friday's announcement, the first phase of the $18 million redevelopment calls for 34 apartments, along with a fitness center and resident lounge.

That project is supported by more than $10 million in NJEDA State Historic Tax Credits.

Combined, the Schwehm Building and former YMCA projects represent 90 new apartments planned by Odin.

The company says it also owns 217 existing residential units in Atlantic City.

Odin has not yet announced rental rates or a completion date for Atlantic Lofts. Additional construction milestones and leasing information are expected as work progresses.

Atlantic City's Residential Landscape Is Changing

For decades, the biggest development stories in Atlantic City tended to involve casinos, hotels and attractions intended primarily for visitors.

Increasingly, the development conversation is also about where people will live.

The Terraces at Absecon Inlet will bring newly constructed waterfront homes to one end of the city. Atlantic Lofts will turn a vacant historic building into apartments and retail near the Orange Loop.

And more residential projects remain in the pipeline.

The contrast between the two projects may actually be the clearest indication of what's changing: one is new construction, the other historic rehabilitation; one offers larger for-sale townhomes, the other smaller rental apartments.

But both represent substantial investments in Atlantic City's year-round residential market.

Just two days apart, 38 townhomes broke ground in the Inlet and work began on 56 apartments near the Orange Loop — 94 new homes moving from plans to reality.

That makes the residential construction surge city officials have been talking about increasingly difficult to miss.