Ocean City still interested in Asbury landmark, has been inspecting it
By DAVID NAHAN
Sentinel staff
OCEAN CITY — Developer Eustace Mita entered into an agreement of sale Nov. 14 to buy the former Crown Bank building at the corner of Eighth Street and Asbury Avenue for $6.5 million, but it has not been finalized.
In August, the city of Ocean City announced its interest in the building with its related parking lots on Central Avenue, which are diagonal from the Ocean City Police Department and Municipal Court building the city needs to replace.
In documents filed Nov. 15 with the U.S. Bankruptcy Court District of New Jersey, the trustee for the building asked the court for permission to sell the building and lots to Ocean City Asbury, LLC, a newly formed limited liablity corporation (LLC) owned by Mita.
Bankruptcy Court Judge Andrew B. Altenburg has not yet signed off on the sale. According to court documents if any objections to the sale are filed, such as by creditors or other interested parties, there will be a hearing Dec. 13 before the judge in the Bankruptcy Court in Camden.
The city remains interested in acquiring the property.
“The city is wrapping up its inspections and investigation with respect to the bank building and the associated parking lots in advance of making an offer to purchase, which would be its preferred method of acquiring these properties,” according to Ocean City public information officer Doug Bergen. He sent that reply to the Sentinel Tuesday after the newspaper requested a comment on Mita’s proposed purchase of the property.
According to the court documents, Mita is the owner of, among other things, Achristavest, “a premier builder of fine waterfront homes and distinctive waterfront living and ICONA, owner of upscale beach resorts on the New Jersey shore.”
Mita became well known in Ocean City when he stepped in to financially rescue Wonderland Pier, the boardwalk amusement park that has been in the Gillian family for three generations. Wonderland Pier had been in financial trouble, which was aggravated by the COVID-19 pandemic, and the bank that held some $8 million in loans was foreclosing on the property at the end of 2020.
Mita stepped in and Jay Gillian has been able to keep Wonderland Pier open. They announced they were working together in March 2021.
Mita became a topic during the last mayoral campaign when it was suggested he wanted to build a high-rise hotel at the site of Wonderland Pier.
Attorney Brian Thomas of Linwood is the trustee for the bankruptcy of 801 Asbury Associates and James McCallion, the owner of the property.
According to the court documents, Mita’s sale closing would be Dec. 29, or another date agreed upon by the trustee and purchaser. Keller Williams Jersey Shore Realty is the broker and is to receive a 5 percent commission — or $325,000 — for the sale.
Under the purchase agreement, “The trustee shall reject any existing leases for the properties and provide notice to any tenant to vacate prior to settlement.”
The Ocean City Sentinel is a tenant of the building, having moved to the former Crown Bank building after Hurricane Sandy in October 2012 when flooding on the island damaged the newspaper’s longtime home at 112 East Eighth St.
The newspaper had already given notice to the trustee at the end of October that it was vacating its offices on the third floor of 801 Asbury Ave. because of the pending sale, according to Editor and Publisher David Nahan. The newspaper offices are moving to a new location at 218 West Ave. as of Dec. 1.
The century-old building once flourishing with tenants now has only a handful, including the Ocean City Sentinel.
The building has six floors but is seven stories high because of the vaulted ceilings on the first floor, which is home to the Second Chance thrift store. The building, the tallest in the downtown, also has numerous cell phone arrays on the rooftop.
The city’s interest
Even though a notice of private sale was filed Nov. 15 for the property at 801 Asbury Ave. and at 176 Route 50, Estell Manor, the city has been evaluating the property after announcing its interest late in the summer.
In August, the Gillian administration announced it was considering buying the building even though it had not decided on a use for it.
At an August City Council meeting, Business Administrator George Savastano said the city had been in contact with the trustee and was working to get access to evaluate the condition of the building. (The elevator was out of service for more than a year. It was just restored to operation last week.)
“The administration considers this property to be extremely worthy of acquisition given its prime location within our downtown,” Savastano told members of council.
At the time, Savastano said there were informal discussions with City Council about the potential purchase and that the city would be evaluating the condition of the property, including the structure, building envelope, mechanical and electrical systems and HVAC systems to determine whether there are any environmental concerns.
Since then, the city contracted with professionals to evaluate the building and they have been in and out over the past few months.
In August, Gillian wrote, “The owner of the iconic six-story structure is under bankruptcy, and the sales listing of the historic building and adjacent parking lots provides a unique opportunity worth taking a look at. We hope to have professionals evaluate the condition of the building shortly. There are many public needs the purchase of this property could potentially satisfy.”