OCEAN CITY — When a second-homeowner in Ventnor was on an extended vacation in Aruba with his family, a serious structural issue was identified at his shore house as part of a routine property check conducted by a local firm, David Nicholas Building & Property Maintenance.
The ground floor of the property had dropped nearly 18 inches. The firm saw that the property was immediately secured. Demolition and repairs were coordinated locally, and the work was completed while the owners remained away.
They returned to a fully repaired property, a stabilized foundation and a safe, functional first floor — without their vacation being disrupted.
This case example underscores the need second-homeowners in coastal towns have for year-round proactive property management.
Notably, many second homes sit empty in the off- season while owners are in warmer climates or busy with work, school and family commitments at their primary residences.
“The fear isn’t just that something breaks, it’s having to drop everything, travel just to inspect a problem, and then attempt to coordinate a major repair from afar,” said Ocean City resident Matthew Malinowski, co-CEO of David Nicholas Building & Property Maintenance.
Worse yet, he said, is discovering damage like a burst pipe only upon returning in the spring, realizing the home needs significant work and that part of the season will be lost to renovations rather than enjoyment.
“These situations can be prevented with proactive management. We keep a local eye on our clients’ luxury properties, providing customers with the peace of mind that their homes are being cared for year-round,” he added.
In October, Malinowski and business partner Tony Frick acquired Margate-based David Nicholas Building & Property Maintenance, a property management firm that had been providing building maintenance services in New Jersey shore towns for the past 25 years.
Founder David Nicholas continues to lead the company as president, as the management team expands the company’s scope of services and geographic reach.
“When you’re not living at the shore full time, peace of mind matters. We saw a chance to build a service model around that,” Malinowski explained.
David Nicholas serves second-homeowners from Ventnor south to Cape May. Services include property preparation and seasonal set up, routine and preventive maintenance, 24/7 emergency response and repairs, and contract management for renovation and redesign projects.
“Ongoing changes in the real estate market at the shore are fueling the need for year-round property management to help people with second homes protect their financial assets and fully enjoy their properties during the summer season,” Malinowksi said. “All along the shore, four forces are converging: increased second-home ownership, rising home prices, the building of larger and more complex homes, and the largest generational wealth transfer in history. Collectively, these trends have created an increased need for property management and maintenance of second homes.”
Here’s a quick look at the market trends:
Second-home ownership has risen sharply. In fact, 60 percent of residential properties in local shore towns are second homes. According to Pacaso, a global leader in luxury second-home co-ownership, Cape May County has 50 percent more second homes than primary residences, which Malinowski views as “a striking indicator of how heavily the region is driven by seasonal ownership.”
Statistics show that home values have increased dramatically, constituting a larger portion of owners’ financial net worth. In 2024, the average second-home sale price in Cape May County was nearly $1.1 million. (In Stone Harbor and Avalon, the typical home value is $2.4 million and $2.6 million, respectively, according to Zillow.)
In 2023, Pacaso found Cape May County to be the most expensive second-home real estate market in the nation, and prices have increased since then.
“The shore hasn’t just gotten more expensive — it’s gotten more complex, at the exact moment ownership is shifting to a new generation,” Malinowski said.
Shore homes today are not the beach bungalows of years gone by.
“Homes are custom-designed. They’re larger and more complex, requiring more professional management,” Malinowski said.
As for the ownership shift, “Gen Xers and Millennials are set to inherit $2.4 trillion of U.S. real estate over the next 10 years,” Malinowski said. “As ownership transfers to the next generation, many families are inheriting highly valuable and operationally complex properties — often while living farther away and juggling careers, raising children and dealing with competing obligations. Without centralized oversight, maintenance issues and day-to-day logistics can quickly turn a cherished family home into a burden, and in some cases, force a sale.”
Frick and Malinowski continue to follow the original David Nicholas business model. David Nicholas charges second-homeowners $1,600 annually for year-round property care. That fee gives clients access to David Nicholas’ building and property maintenance platform and comes with weekly house checks and daily freeze checks when temperatures fall consistently below 25 degrees.
Additional services include home repairs, full-scale renovation projects and maintenance of utilities such as HVAC, electrical systems and plumbing.
Advanced home care covers pest control, painting, power washing, and pool and hot tub maintenance. The company also offers custom coastal home care options such as the installation of generators and bird deterrent systems, storm preparation and boat care.
Preventive maintenance is an essential component of the company’s business model.
“We can identify issues before they become emergencies, enabling homeowners to avoid disruption that can derail an entire season. Preventative work ranges from relocating exterior components inside buildings to reduce salt-air corrosion and fire risk to early identification of frozen or burst pipes that can prevent catastrophic water damage,” Malinowski said. “We maintain in-house field teams who can address issues immediately when something does arise.”
Malinowski points out that many second homeowners are unaware of the benefits of year-round property management.
“Typically, they have financial advisers to manage their investments, yet they lack professional management of their shore properties. That’s somewhat surprising given soaring home values,” Malinowski said.
According to Malinowski, David Nicholas serves as a trusted adviser when homeowners are planning major projects, whether it’s a new addition or modernizing an outdoor living space.
“We consider ourselves to be the Goldman Sachs of property management,” Malinowski said. “We advise on what truly adds value. In one case, a homeowner had a cedar shake roof that wasn’t designed for coastal conditions. Our team recommended a more economical asphalt roof that offered comparable longevity and curb appeal, allowing the homeowner to redirect savings toward improvements more likely to increase overall property value.”
He said local contractors are available to complete renovations and redesign projects.
“A client may want to remodel a kitchen, add a deck upstairs or build an addition during the off-season. Because of long-standing local vendor relationships, our team is often able to coordinate quality trades in accelerated timelines,” Malinowski said. “It’s been meaningful to build a business that enhances the local real estate market and the economy, in general, by providing jobs to local home repair and renovation professionals.”
Currently, David Nicholas has $4 million in annual revenue through its client list of 130 homes. Over the next five years, Frick and Malinowski plan to build their client list to 1,000 homes and generate $40 million in revenue.
Malinowski and Frick both possess strong business acumen. Prior to becoming co-CEO of David Nicholas, Frick, previously an attorney with a Philadelphia law firm, turned around corporate wellness company HUSK. Malinowski has a deep financial background, previously working as an investor at Radnor-based private equity firm NewSpring Capital and investment bank Moelis and Co. Both Frick and Malinowski have operated their own rental properties at the Jersey shore.
Frick and Malinowski had the backing of Philadelphia investor Ira Lubert to purchase David Nicholas. Lubert has played a role in redevelopments in Philadelphia’s Fishtown neighborhood and the Bellevue in Center City.
“Since purchasing David Nicholas, we’ve made investments in the company’s infrastructure, people and technology to meet the growing demand for property care for second homes,” Malinowski said.
He pointed out that while second homes at the shore are financial assets, they’re also emotional assets.
“People build family memories here,” Malinowski said. “The beach is where your grandchild may take his or her first steps. Maybe it’s where your son took his first fishing trip. It’s where you build sandcastles with the grandkids. All of this means it’s essential that homeowners protect their shore properties. When it comes to emotional assets of beach homes, you can’t put a price tag on that.”
By ALICE URBANSKI/For the Star and Wave
