A deteriorating building and a proposed city process
The Seaspray was built as a hotel between 1955 and 1960 and converted to condominiums in 1980, according to 97.3 ESPN. Engineering studies dating back to 2000 identified structural defects, including cracked concrete floor slabs and corroding steel reinforcement. A 2022 lawsuit by unit owners cited repair costs exceeding $9 million, 97.3 ESPN reported.
Ocean City officials first declared the 32-unit complex unsafe in 2023. It reopened briefly, then was closed again in 2024 after a concrete stair landing failed, according to NBC10 Philadelphia. The shutdown followed disputes among owners about whether to repair or sell the property; a court-appointed receiver was ultimately authorized to sell it, NBC10 reported.
In 2025, Ocean City Council approved a resolution concerning rehabilitation designation for the 3313-3315 Bay Avenue property. The process could allow the city and developer to establish zoning standards for the site, the Ocean City Sentinel reported.
Sale and replacement plans
The HOW Group acquired the property through the receiver’s sale for nearly $6 million, NBC10 reported. The developer plans to replace the complex with The Drift at Salt Meadows, a 43-unit condominium building with 10 three-bedroom units and 33 two-bedroom units. NBC10 reported that the developer hopes to start construction early next year.
Plans described in a developer press release carried by StreetInsider include a green roof, 87 covered parking spaces with EV charging, a rooftop lounge and putting green, and a dog-wash station.
Demolition has begun
Demolition of the former Seaspray complex has started, clearing the site for the proposed development, NBC10 reported. The article’s supplied accounts differ on the weekday of demolition activity, so the date is not specified here.
