At least one Orlando developer is looking to steal vacation home investors from Miami.
Magic Development, a condo, hotel and vacation home developer based in Orlando, is hosting events in Miami to promote its Magic Village by Pininfarina. The luxury enclave is named for the Italian design firm that makes the Ferrari.
The 450-unit development at 5500 W. Irlo Bronson Hwy in Kissimmee offers a three-bedroom, three-and-a-half bath unit measuring 2,195 square feet for $503,000; and a 2,355-square-foot, four-bedroom, four-and-a-half bathroom unit for $575,000. Amenities include a clubhouse at the center of the project with concierge service, pool and restaurant.
The Magic Development price is about one-quarter that of a luxury condo in Miami-Dade, where per-square-foot pricing is more than $800, according to Keyes Luxury South Florida 2019 third quarter report. The company will manage the community and provides a rental pool for homes that are not in use.
Already investors have swooped in, primarily from Canada, China and Latin America, buying 240 units, according to the developer.
Construction began in 2018 for the $250 million project and should be completed by late 2020.
The firm has good reason to look to Miami for out-of-state and foreign investors. “We’ve seen a lot of Realtor agents bringing their clients from Miami to Orlando to look for opportunities in the last year.” aid Moracy Painha Dores, a director for Magic Development.
Along with the price advantage, the Orlando area has another irreplaceable draw: the theme parks. More than 20 million visitors attended Walt Disney World’s Magic Kingdom in 2018, according to Theme Park Insider, while more than 10 million visited Universal Studios Orlando.
“Kissimmee is known as an area that is still growing,” said Joe Hernandez, chair of the Real Estate Practice Group at Weiss Serota Helfman Cole & Bierman.
One drawback to investing in the Orlando area is the amount of inventory, Hernandez said, “The risks are that if you don’t know that market and you have too much competition, you may not yield the income that you thought because of the competition.”
Magic Development has three other developments underway in Orlando. Dores said investors in his one completed project, Magic Village Yards, have seen at least a 6% return on investment per year with an average 62% occupancy rate. For example, Magic Village Yards charges $250 to $270 a night and has a 62% occupancy rate.
Magic Development plans to host events throughout South Florida. “We’re going to start in Miami, but we do see an opportunity in Palm Beach and Fort Lauderdale,” Dores said.