Property Listing
In the heart of downtown Orlando, a nearly vacant lot located at 319 N. Magnolia Ave has hit the market with an impressive price tag of $10 million. This prime piece of real estate is owned by Magnolia Palmetto Holdings LLC, a company affiliated with Tampa-based Aureate Development. The listing marks a significant opportunity for potential developers aiming to capitalize on the bustling growth of Orlando’s downtown area.
Previous Purchase and Current State
Aureate Development originally acquired this approximate half-acre property in 2018 for $2.4 million. Currently occupying the lot is a single-story, vacant office building. However, redevelopment plans will necessitate the demolition of this existing structure, making way for new and modern construction.
Development Approvals
Importantly, the property has already received city approval for the development of a 26-story mixed-use tower. This ambitious project is set to feature:
- Up to 232 apartment units
- 6,000 square feet of retail space
- 15,875 square feet of office space
- A 280-spot parking garage
The project also benefits from a density bonus, enhancing its potential appeal and feasibility.
Developer’s Decision
Aureate Development has made the strategic decision to sell the property in order to concentrate on other ventures. Matt Hall, a broker with Tampa-based Bounat National, is spearheading the marketing of the property. Hall is confident that, with the right finishes and amenities, this site has the potential to become a landmark development within downtown Orlando.
Market Conditions
The development market for multifamily housing in downtown Orlando has faced some challenges, as noted by developer Craig Ustler. However, he suggests the market may see increased activity by 2025 due to a recent drop in interest rates. Prospective developers should be aware that projects of this magnitude typically require a period of 12-18 months of due diligence and predevelopment work, followed by approximately 24 months of construction.
Local Real Estate Context
Downtown Orlando has experienced significant growth, with 488 new apartments completed in the past year and an additional 350 units currently under construction. The average rent in downtown Orlando is $1,933 per month, reflecting a 0.5% year-over-year increase. This vibrant real estate market underpins the potential value of the listed property.
Other Nearby Listings
The area around North Magnolia Avenue is seeing a flurry of activity, with several other vacant lots also available for purchase. Notable listings include a plot near the courthouse priced at $12.3 million, and another at North Orange Avenue and Marks Street, listed in the $10 million range. These listings underscore the dynamic and competitive nature of downtown Orlando’s real estate market.
The sale of the 319 N. Magnolia Ave lot presents a unique opportunity for ambitious developers to make a significant impact on Orlando’s skyline and contribute to the ongoing growth and revitalization of its downtown core.
