Irish investor snaps up lots in Parramore

The buyer isn't discussing plans, but officials say he wants to mix retail, office or residential space.

Mark SchluebSentinel Staff Writer December 1, 2005 Orlando Sentinel

An Irish hotelier and real-estate investor has been quietly buying land in Parramore, another indication that the troubled neighborhood is becoming the next frontier in downtown development.Sean McElvaney of County Kildare, Ireland, bought 20 mostly residential lots scattered throughout Parramore three weeks ago for a combined $3.2 million, records show. That follows six months of purchases totaling $1.7 million in 2003 and 2004 that left McElvaney the owner of nearly an entire block.McElvaney isn't talking about his plans, but city officials say he envisions a mix of retail and office or residential space. And like others, he may be banking on the possibility that Parramore's land values and development opportunities will climb, just as they have on the other side of Interstate 4 in downtown Orlando's central business district."It's location, location, location. We are downtown," Parramore landowner David Van Gelder said. "Everybody knows it is going to be worth a lot of money."The 1-square-mile community is Orlando's poorest, mired in crime, poverty and low rates of homeownership. Parramore has long resisted City Hall's efforts at rejuvenation, but Mayor Buddy Dyer has repeatedly said the success of his administration should be measured by the success of Parramore.Though many see Parramore's redevelopment as inevitable, it has lagged behind the booming pace just to the east. At the same time, some residents worry about the neighborhood's eventual gentrification -- and whether there will still be a place for them as land values rise.McElvaney, who owns commercial buildings in Jacksonville and Atlanta and a hotel west of Dublin, Ireland, bought the residential property, including some with run-down houses, from two corporations controlled by Parramore landlord K.D. Lewis.Because they are mostly scattered, the residential lots don't lend themselves to new development of significant size. McElvaney's attorney, Terry Delahunty of Orlando, said his client is taking a "long-term view" of his land holdings and has no plans to eject tenants."Sean is very concerned about the availability of affordable housing," Delahunty said. "Anything he does there will take that into consideration."McElvaney's commercial purchases cover most of the block bounded by Central Boulevard, Pine Street, Terry Avenue and Parramore Avenue. That land is presumably large enough to accommodate a mixed-use building, though high-rise development such as that found in downtown's core wouldn't be allowed under the zoning that covers most of Parramore."He's talked about a mixed-use development there, but there is nothing firm in the works that I'm aware of," Downtown Development Board Director Frank Billingsley said.The future of that project may also come down to location. The land is just across Central Boulevard from the Coalition for the Homeless shelter."That is a major stumbling block toward redevelopment," Billingsley said.City officials for years have pushed the coalition to move its campus out of Parramore, saying the homeless people who congregate there discourage developers from investing in the neighborhood. In 1999, the City Council adopted a policy that prohibits new social-service agencies from moving to Parramore and bars existing ones from expanding.Homeless-coalition leaders say they are willing to move, but only to a site close to the area's homeless population and the charitable services they use. The search for a new location has often left the homeless coalition at odds with City Hall and the community. Most recently, black politicians blasted an idea to move it near Jones High School.This week, five members of a real-estate advisory group who have expertise in homeless issues have come to Orlando to study the coalition's needs and identify potential sites. The Counselors of Real Estate is expected to issue a recommendation to the city and the coalition in a few weeks.Van Gelder, the Parramore landowner, said development won't take off in Parramore unless problems with the homeless and crime are solved."Until they get rid of the coalition and enforce the law and get rid of the crackheads and drug dealers and prostitutes, nothing is going to happen," he said.McElvaney met with Dyer months ago and is expected to discuss his plans Friday with city Commissioner Daisy Lynum, who represents Parramore. But he hasn't submitted any development plans.Hughes Supply, a Fortune 500 building-supply company with headquarters in Parramore since the 1920s, has also made big land purchases in the neighborhood recently. A block southeast of the homeless shelter, a Hughes holding company bought two adjacent parcels for a combined $2.5 million in May and July. The company spent an additional $3.21 million in July to buy two large tracts on Mercy Drive.City officials said the company has discussed expanding its operations in Parramore. A Hughes representative did not return a call seeking comment Wednesday.