Officials say the flames at the Bayview Inn and Suites broke out at 1 a.m. Monday.
The motel was shut down back in August, after police raided the building, arrested several people on various charges, and also found a live, 2 1/2 to 3 foot alligator in the facility's swimming pool.
The property was later condemned, and the alligator transferred to the Cape May County Zoo.
When firefighters arrived at the shuttered motel early Monday, they found evidence that squatters had been living there.
Investigators are calling the fire "suspicious."
They are still working to pinpoint the cause of the blaze.
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