According to DelMoSports Inc., the organizers of the event, lifeguards noticed the man was in distress near the finish 'Open Water Classic' swimming portion of the event around 8:30 a.m. Sunday.
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The man was pulled from the water to the beach in Lower Township near David Douglass Sr. Memorial Park where EMS personnel administered CPR.
He was then taken by ambulance to Cape Regional Medical Center where he was pronounced dead.
"I'm heartbroken," Stephen DelMonte, CEO of DelMoSports LLC, said in a statement. "DelMoSports and USA Triathlon lost a member of its beloved community, and we extend our heartfelt condolences to his family and friends."
The company said proper safety precautions were followed "as the health and safety of athletes are both DelMoSports and USA Triathlon's foremost priority."
Officials said the man was in his 70s. He has not been identified at this time.
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A medical examiner will determine the cause of death.