Detectives with the city's Special Investigation Section said they made a residential search in the 800 block of Pennsylvania Avenue on Wednesday.
Michael Thomas, 56, was arrested after detectives located 690 bags of heroin and paraphernalia used in the distribution of narcotics, police said.
The investigation was led by Detective Alberto Valles. He was being held at the Atlantic County Justice Facility.
Anyone with information about the distribution of narcotics is urged to contact the Atlantic City Police Department Special Investigations Section at 609-347-5858 or text anonymously to tip411 (847411). Begin the text with ACPD.
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