Magale Strand Condominiums 2313 Strand St

Fact sheet for the sale of the first floor and more recent history: The three story “Iron-front” historic Magale Building at 2313 Strand was constructed in 1870 as the marker mentions. Strand Street went through an amazing renaissance beginning in the early 1970s. During the early stages of Galveston’s redevelopment of the historic downtown, George Mitchell, Bill Fullen, Doug McLeod, Jack King, and others were early investors in a number of old buildings which were all in advanced stages of deterioration. Doug and Jack King renovated their buildings in the 23rd hundred block in 1976 – with office/retail space (Magale) and a candy factory respectively (La King’s Candy Factory). McLeod and Louis Pauls were thus owners at that time – each with an undivided ½ interest in the Magale Building. In 1982, a third person expressed interest in co-owning the Magale Building with McLeod and Pauls. It was decided at that time to divide the building into condominiums: McLeod would own in fee simple the first floor (with one entire commercial area or four commercial condominiums if preferred); Wm Payne would own the second floor (with four residential apartments which could become condos); and Pauls would own the third floor, which would remain an entire residential floor. McLeod, at age 83 in 2024, decided it was time to sell his first floor in its entirety – a truly trophy property in the mainstream of the historic Strand district.

Owner – Joan W. McLeod. Real estate firm representing owner is McLeod Properties, Joanie McLeod, attorney/agent - contact (713) 498-5424.
E. Douglas McLeod, developer/attorney for McLeod interests in the building.

Price - $1,100,000 for the first floor purchase

Recommended rental - $5,000-$7000 per month to tenant(s) for total of 1st floor. Owner of 1st floor for nearly 50 years (McLeod) recommends renting out the entire floor to one tenant if possible; however, rentals could be increased beyond $5k if the owner is willing to manage and rent to four different tenants.

Area of first floor – approximately 4,200 sq. fit

Use of first floor – retail or office space recommended. Through the years, tenants have included a real estate firm, a law firm, a state legislator’s office,
a maritime company, and various retail and specialty stores.

Insurance costs – insurance premiums are divided by 1/3 per floor (by the owners of the three floors)
(flood is $15,606 total annually. Each owner pays $5,202.00. Windstorm is $24,539.00 total annually. Each owner pays $8,179.66. Property, general liability, and umbrella is $25,753.78. Each owner pays $8,584.59. These premiums are paid in July and August. Each owner therefore pays a total of $ 21,966.25 for his share of the total insurance package.

Ad valorem (property) taxes – for the first floor owner in 2024 were a total of $ 6,772.70. Divided by four condo sections on the 1st floor, taxes were billed as:
1-A, $1,583.07 1-B, $1,708.19 1-C, $1,859.96 and 1-D, $1,621.48

Currently – utility bills, first floor – Owner pays circa $ 100.00 monthly for minimal water and refuse billings. Tenants currently pay only a total of $338.86 for their three meters on the 1st floor. This low cost for electricity has likely resulted from the incredibly thick inner walls (multiple brick) of the historic building.

Maintenance costs – vary according to floor and/or shared costs with 2nd and 3rd flor owners. The first floor had minimal repairs needed in 2024.

Warranties – the Magale Building is a recorded Texas historic landmark but is 154 years old. The building is to be sold “as is” with no warranties, as is the case with all but a very few historic buildings when offered for sale. That said, this building has withstood hurricanes and disasters for a century and a half and is yet standing, useful, and valuable. The McLeod Family is proud of having restored the building 50 years ago and operated it successfully for that time.