A luxury condo project in the Chelsea section of Atlantic City is in foreclosure proceedings, according to property documents filed with the Atlantic County clerk.
“The Breakers” project on the beach block at 4100 Atlantic Ave was touted just three years ago by city and state officials as a sign Atlantic City’s economic development was rebounding. The project, just five blocks from the new South Jersey Industries headquarters and Stockton University campus, was mentioned in the city’s multi-billion-dollar debt offering this year as an important non-casino development. There were 12 oceanfront “townhouse” properties for sale, with more planned. The condos, which boasted two fireplaces, four bedrooms and four-and-a-half bathrooms with an optional pool, were offered with a 15-year tax abatement.
Just two showhomes were built, however, and in August, Old Bridge, NJ-based Amboy Bank, sued to reclaim the property from its owner. Some time over the summer, someone seemed to move some furniture into one of the show homes on the property and kids play equipment appeared in the yard. Calls to the lawyer for the bank and bank officials were not immediately returned.
Filings show that the mortgage on the property had been modified and extended five times, most recently in 2012 to $9.5 million, almost double the original $4 million loan extended in 2005. The property, between Richmond and Annapolis Avenues, was originally acquired for $8 million from the Children’s Hospital of Philadelphia.
The owner of the property is an entity called 4100 Atlantic Avenue Associates, which became an urban renewal entity for tax purposes in 2014, state filings show. Atlantic City council amended a redevelopment agreement with the owners earlier this year, extending the period of time they had to complete the project. It is not clear what the property’s future will be. Calls and emails to the development company and a lawyer for the owners – named as John Delmonaco, Warren Diamond and Joseph Zarrelli in a state filing – were not returned.