With a three-year-old lawsuit still hanging over him, Orlando developer Tim Majors this week listed his corporate headquarters office and namesake nightclub in Ivanhoe Village for sale for $13 million.
The listing includes the 3-story building at 2000 N. Orange Ave. that also hosts the M Bar car-themed event center on the ground floor and rooftop lounge. Adjacent buildings at 2008 and 2010 N. Orange Ave. are also included in the bulk sale. Majors Investments, which specialized in development of medical office complexes, occupied the second floor.
NAI Realvest broker Paul Partyka has the exclusive listing and is also accepting offers for each building separately. Combined, they have about 48,000 square feet, which comes to $270 per square foot, but Partyka said the long-term play would be for an infill redevelopment the 1.12 acres, since the zoning allows for a maximum height of 100 feet.
“To me, the buyer is a potential company that has a relationship complementary to the medical industry or wants to work with AdventHealth or Orlando Health,” he said. “It could even be an ideal space for someone in the medical marijuana industry as a corporate office.”
Majors paid $3.55 million between 2015 and 2018 assembling the land and converting the former surgery center into his offices and bars. He expanded the facility by taking over the space at 2008 N. Orange Ave. and had planned a complementary M Restaurant in the former antique store at 2010 N. Orange Ave., but the project never moved beyond the internal demolition stage.
The Australian-born attorney, developer and classic car collector had found a niche in Orlando’s office market and exploited it with the rapid acquisition, renovation and sale of his “Medical Village”-branded properties. His company converted more than a dozen distressed properties into class A, multi-tenant medical offices, many of which were sold to institutional investors and health care real estate investment trusts (REITs) for anywhere from $5 million to over $20 million.
Partyka said Majors was motivated to sell because business had dropped off at the bar and event space due to the pandemic, and because he had relocated to “the coast” and no longer wished to commute to the Orlando office.
But Majors’ growing legal problems are likely a motivating factor on his decision to divest.
He is being sued by California-based Griffin Capital, which operates a REIT that paid $16.3 million in 2015 for the Medical Village of Mount Dora. The buyer has accused Majors and his then-business partner of manufacturing fake leases from tenants who never existed and staging offices to appear as if they were occupied.
As that case winds its way through the courts — there still is no set trial date — it has taken a toll on Majors’ once thriving real estate business. And he has faced lawsuits this year from a vendor who alleges that he was never paid for more than $40,000 of work at Medical Village of Eustis and from a former joint venture business partner on the Longwood Medical Village project.
S&S Investments, based in Lexington, Massachusetts, put up $1.05 million in a deal with Majors Investments to buy and flip an office park in Longwood. Majors agreed to repay the investment, plus 8% annual interest and a share of the profits upon the sale of the property, according to court documents. He personally guaranteed the payment, using his own classic car collection as collateral for the loan. The documents list 26 classic cars with a combined total of more than $3 million; among them a 1976 Ferrari, a 1975 Lamborghini, two Bentleys, three Corvettes and a 1964 Alfa Romeo Spider.
In the complaint, which was filed Oct. 6, the plaintiff said Majors agreed to repay the cash investment plus interest if the property didn’t sell by July 25, 2020. That deadline has passed, and Majors has not paid. S & S Investments has liens on the 25 vintage cars on display at M Bar and Majors’ personal vehicle, a 2007 Bentley.
Partyka said he isn’t up to speed on his client’s legal issues. “I just deal with the real estate.” He told GrowthSpotter he feels confident the property will get close to ask, since it has already appraised at $13 million. “If this was a good market, pre-pandemic, we might get $17 million,” he said.
The most recent comparable sales would be the 68 S. Ivanhoe Ave. deal, where Florida League of Cities paid $7.5 million for a vacant 1.5-acre site. Ustler Development and Wood Partners paid $5.6 million last December for the block across from AdventHealth Cancer Institute, where they are building Alta at Health Village apartments.