Wednesday, August 24, 2005

Pricing the Downtown Makeover

The two properties shown below have recently been acquired by a developer that proposes a mixed use condo and retail project for the 720 S Orange site and a residential project for the 635 S Orange property.

720 S Orange

635 S Orange

With the announcement that another property has been sold on S Orange Ave, we thought a comparison of recent sales was warranted - along with the proposed Orange Dolphin parking lot deal.

  • The proposed Orange Dolphin deal, 1530 Dolphin, was $4.4M for 21,263 sq ft, or $207 per sq ft.
  • The property at 1533 Dolphin (3,995 sq ft) sold in May of 2005 for $640,000 or $160 per sq ft.
  • The property at 401 Pineapple (8610 sq ft) sold in Jan. 2005 for $1.6M or $186 per sq ft. This is contiguous to the 1530 Dolphin property.

Two blocks to the south on Orange, two other properties recently changed ownership:

  • 720 S Orange (54,994sq ft) sold in August of 2005 for $4.8M or $87 per sq ft.
  • 635 S Orange (37,139 sq ft) sold in February of 2005 for $2.75M or $74 per sq ft.

With this kind of price range within a two block area it would seem that if the city continues to pursue land acquisition strategies, part of the process should be to get competent advice (and good appraisals) before signing a contract.

We also wonder if another buyer will surface for the Orange Dolphin property. We were told that several developers were lined up: "We are in competition with, I would say, three or four large scale, pretty deep pocketed development interests for this land and for the other things we’re trying to accomplish downtown." And "All I can tell you is, I believe very firmly that if we don’t lock down this property, it won’t be there in a week."

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