Second homes: Bet on getting an affordable beach home in Atlantic City
— -- Before World War II, Atlantic City was one of the nation's most popular oceanfront resorts, on par with Miami Beach. When its fortunes declined, the city became the first U.S. locale outside Nevada to allow casinos.
The original Atlantic City casinos were self-contained and did little to revive their surroundings. But now, development has spread across downtown with two new retail and dining complexes: the Walk near the convention center and the 300,000-square-foot Pier Shops at Caesars.
In the city's suddenly hot south end, four casino resorts are under construction, along with Bella, a new residential high-rise condo building. Other recent condo projects include a conversion of the old Ritz-Carlton hotel. Studios can be had in the low $100,000s, but most new condos start at $200,000 to $300,000.
Other recent developments include two non-gaming hotels, The Chelsea and The Water Club at the Borgata Hotel, Casino & Spa, reflecting the city's new objective to be a dining and entertainment destination. The latest major improvement was the launch in February of the Atlantic City Express Service (ACES) train, a direct connection to Newark Airport and New York City.
Atlantic City occupies the north end of Absecon Island, which also includes the villages of Margate, Ventnor and Longport. It's just a 20-minute drive from one end to the other, and most second homes offer attractions within walking distance.
Outside downtown, homes are large for a resort town. "It's the last frontier of the Northeast where you can still buy affordable vacation homes on the beach or a block away. Most second-home owners spend $300,000 to $700,000," says real estate agent Mark Arbeit of Prudential Fox & Roach.
Arbeit cites the location — an hour from Philadelphia, two from New York— as a major draw.
"New Yorkers are sick of traveling all the way to the Hamptons and spending millions for beach homes," Arbeit says. "There is world-class entertainment (here), thanks to the casinos, restaurants, spas, nightclubs. It's affordable, and almost everything on the island is close to the beach."
A look at three Absecon Island neighborhoods
•Atlantic City:For second-home owners, the place to be is the south end of the city, especially the Lower Chelsea neighborhood, says Realtor Mark Arbeit. "It's the most residential, (with) estates and large beach homes. As you go north, it becomes much denser and more of a commercial city." New condos begin at about $235,000; four-bedroom houses are around $370,000.
•Ventnor:Just south of Atlantic City, Ventnor also has a boardwalk. Here, it extends from the main casino and entertainment strip. "The island is narrower here, just three blocks from beach to bay, so everything is close to the water," Arbeit says. Older condos can be found for around $200,000, new luxury townhouse condos start at about $450,000, and single-family houses begin around $300,000. The most desirable section is St. Leonard's Tract, nine blocks of grand homes on large lots.
•Margate/Longport:While Ventnor is an extension of Atlantic City, Margate has its own town center with restaurants and shops. Prices run just a bit higher than in Ventnor, Arbeit says. On the island's southern end, Longport is residential and the most expensive. Almost all homes are on the beach or bay, and there are few condos. Single-family houses begin at $800,000, but many are in the $2 million-$3 million range.