Former hospital property sells for $2.05 million

Ormond Beach Observer
Business

The $2.05 million sale of the former Florida Hospital site at 264 S. Atlantic Ave. closed earlier this month, becoming one of the latest parcels on Ormond's beachside that could soon see new development.

The property was purchased by Ormond Holdings LLC, a company based out of South Carolina, which also bought the vacant oceanfront parcel at 251 S. Atlantic Ave. for $5.3 million in January. A site plan submitted to the city in March shows the developer seeks to build a five-story, 95,700 square foot hotel with 137 rooms in the oceanfront parcel. The developer also seeks to use a portion of the former hospital site across the street for hotel parking.

What will be built on the remainder of the 106,123 square feet of land? A mix of retail and residential.

Overall, it is a good sign for the beachside, according to local real estate agents.

Real estate agent John Haley, of Coldwell Banker Premier properties, said that the addition of retail shops and residential is a great idea.

"It means tax revenue for the city," Haley said. "It means people spending more money in that area and to revitalize that area. Not only is it going to benefit leisure travelers, but locals as well, because now they'll have more to do, particularly in that area."

It's always nice to see something new and improved, said John Adams president of Adams, Cameron and Co. The hospital site has been vacant since it was demolished in 2019, and a vacant site "doesn't do a whole lot" for the beachside, he explained.

"I think the idea of having some new development along there is very positive," Adams said.

With the low inventory of commercial land, he expects that instead of new buildings, what the beachside may continue to see is improved spaces and more parking.

Other recently sold properties include the Quality Inn and Suites located at 295 S. Atlantic Ave., which sold for $3.5 million and will become a Comfort Inn, as well as the Chateu Mar Beach Resort at 507 S. Atlantic Ave., which sold for $3.1 million. Both properties were sold in 2020.

While business travel is currently lagging a bit behind leisure travel in the city, Haley said the increase in visitors to this area will benefit the hospitality industry via a higher average daily rate, revenue per room and optionality.

In nearby Daytona Beach, new developments to the Hilton Daytona Beach Oceanfront Resort could also come soon. Haley is the listing agent for the commercial lease of the hotel, and said a national entertainment venue has expressed interest in 11,000 square feet of the spaces available for lease within the property.

"They (Starwood Capital Group, the owners of the property) want to make a better guest experience — really not interested in the revenue that would be generated by the spaces that are for lease," Haley said. "But when the guests have more to do right there and not leave the hotel, everyone benefits."