Lambada,
I'd say your assessment (note the social worker lingo) of the situation on Long Beach is "spot on". It's actually a great place to hang out during the day, enjoy the view and the ocean breeze, and perhaps an adult beverage or 2 (or more). The beach side bars all close early by Dominican standards and the place is dead before midnight. It does have a run-down look and feel to it and could use an influx of energy, but I'm not sure if one new owner could turn that trick.
If someone buys this place, I think they would be wise to try to retain the day bartendress, Jaquelina. What a sweetheart! Derrick is a charactor, and an OK guy, but a smile and a hug from Jaquelina is the main reason I always stop bye for a drink every time I'm in Puerto Plata. I'll quickly add that a smile and a hug is all I (or anyone else for that matter) get, because she is very much "taken", and Jerry is one lucky hombre.