Could a former bank building become Ocean City's new police headquarters?

Twin brothers Raj and Yogi Khatiwala have spent the last two years renovating the iconic former Crown Bank building into a modern office and retail complex.

At the same time, they have retained much of the 100-year-old building’s historic and architectural features, including the bank vault on the first floor.

“They don’t build things like this anymore,” Raj Khatiwala said of its old-time construction.

Now, the Khatiwalas are discussing the possibility of selling the building at 801 Asbury Ave. to Ocean City. The city, in turn, is interested in possibly turning the building into the new police headquarters.

The brothers purchased the former Crown Bank building and the adjacent parking lots in 2023 for nearly $6.7 million to save the then-financially troubled property from a bankruptcy auction.

Mayor Jay Gillian announced last week that the city may buy the building for a new police headquarters after analyzing its structural integrity. No price has been divulged yet.

Raj Khatiwala said the city approached him about the possibility of acquiring the building. He is willing to listen to the city’s offer, he added.

“They’re interested. They reached out. We’re definitely in discussions,” he said in an interview.

    Raj Khatiwala heads Eclat Investments along with his twin brother, Yogi. (Photo courtesy of Eclat Investments)
  

Raj and Yogi Khatiwala are the founders of the real estate investment company Eclat Investments. The Crown Bank building’s purchase added to their list of hotels, motels, retail shops and other properties acquired in Ocean City in recent years.

Their Ocean City business holdings include The Scarborough Inn, The Beach House, The Forum, Tahiti Inn, The Atlantic, The Surf Club and The Cove. They also own the Shoppes on Asbury, Stainton’s A Gallery of Shops in the downtown and Stainton’s Gallery by the Sea on the Boardwalk, among other retail sites, according to Eclat’s website.

Raj Khatiwala said Eclat has invested a significant amount of money in the former Crown Bank building to renovate the interior and exterior and freshen up what had been a tired-looking structure.

“We spent significant capital in the last two years to turn an obsolete structure into a vibrant, fully renovated office building,” he said.

For the next phase of the building’s renovation, they plan to erect scaffolding within the next 30 days to begin the restoration of the building’s brick exterior to its original appearance.

“While extensive restoration work has already been completed on the limestone exterior, as part of our comprehensive plan, we will continue to restore the remaining components of the architectural design,” Raj Khatiwala said.

    Eclat Investments has been renovating the interior office space of the former Crown Bank building. (Photo courtesy of Eclat Investments)
  

The six-story former Crown Bank building dates to 1925 and is a landmark structure in the heart of Ocean City’s downtown retail district. It consists of five floors and a mezzanine area.

The ground floor functions as a retail complex known as The Shoppes at Asbury, while the upper floors are office space. Eclat has its corporate office on the building’s sixth floor.

The city already leases the fourth and fifth floors and part of the second floor of the building to accommodate some of the administrative operations of the police department.

“At this time, the city is pursuing due diligence to check the structural integrity of the building at 801 Asbury for use as the public safety building. Police are currently housed there in rented space, and they say the building meets their needs,” Gillian said in statement last week while announcing the city’s interest in possibly buying the property.

Khatiwala also said the police department has reacted favorably to having office space in the building.

“They love it. They tested out the building already,” he said of the leased space.

    The antiquated public safety building is a former school dating to the late 1800s.
  

The fate of Ocean City’s existing public safety building, which is a former school dating to the late 1800s, has generated much discussion for years among the mayor and members of City Council.

Gillian had once flirted with the idea of developing an entirely new public safety building combining the operations of the police and fire departments. He backed off after Council balked at the estimated $42 million price for a new building.

The latest plan was to expand and modernize the public safety building, at an estimated cost of $30 million, to continue using it as the police department’s headquarters.

But the city is also exploring the possibility of buying the former Crown Bank building to see if it would be a more cost-effective option than renovating the existing public safety building at Eighth Street and Central Avenue.

In addition to the possibility of renovating the public safety building, city officials have also talked from time to time about possibly demolishing the site and using it for much-needed public parking for the downtown business district.

Separately, the city is constructing a new $6.1 million police substation at Eighth Street and the Boardwalk. The substation will give the police department a bigger presence on the Boardwalk when the project is completed this fall.

Last year, the city spent $3.3 million to buy two parking lots from the Khatiwala brothers that were part of the former Crown Bank building property. The city has been acquiring property on the block of Eighth Street and Central Avenue, just behind City Hall, to create more parking for the downtown.

    The city has already acquired two parking lots behind the former Crown Bank building.
  

If the city buys the former Crown Bank building, the deal would also include another parking lot directly behind it that has nearly 50 spaces, Raj Khatiwala said.

“The fact is, they can move right into this beautiful building. It’s ready to go. It’s fully renovated,” he said.

Khatiwala also said that the building’s prime location on Asbury Avenue would give the city the ability to control a greater swath of the downtown area. He also believes that the city’s expanded presence downtown would provide an economic boost for the surrounding retail shops and restaurants during the slower, off-season months.

“This, being a fully occupied office building with full-time tenants, adds to the restaurants and everything else on Asbury Avenue,” he said. “Everything is right here. I think it will support the downtown in the off-season.”

As discussions continue over a possible sale, Khatiwala acknowledged the possibility that both sides may not reach a deal.

“It’s still up for discussion. We haven’t finalized anything,” he said.

He also noted that Eclat Investments renovated the building with the idea that it would serve as the company’s corporate headquarters – and wouldn’t mind keeping it.

“Overall, it’s a tremendous building. If the city buys it or not, we love it,” he said.

    The soaring first level of the former Crown Bank building serves as an upscale setting for The Shoppes at Asbury retail complex. (Photo courtesy of Eclat Investments)