Green Light for 32-Story Tower Near Lake Eola Marks Orlando’s Biggest Downtown Approval This Year

Orlando City Council voted late Wednesday to approve a $340 million mixed-use tower on the corner of East Colonial Drive and North Rosalind Avenue, a major step forward for a project that will reshape the northern edge of the Central Business District. The planned 32-story tower, proposed by Dovetail Development Group, will stand across from Lake Eola Park and include nearly 420 apartments, 90,000 square feet of Class A office space, retail, and a rooftop skyline deck.

Approval comes as Central Florida’s real estate market grapples with record-low vacancy rates and surging demand for both leasing and home ownership. Developers and city planners alike say new inventory is essential to keeping pace with rapid population growth and keeping a lid on prices — an increasingly urgent task as Orlando’s median listing price hit $449,000 in June, according to data from Orlando Regional REALTOR® Association.

Lake Eola’s Changing Face

The site, currently a collection of low-rise offices and a long-vacant restaurant shell, sits just two blocks from the Dr. Phillips Center for the Performing Arts and within half a mile of Lynx Central Station. The new tower joins a roster of transformative developments, including the 29-story “Eola Vision” tower underway at 200 E. Central Blvd, and the planned expansion of Creative Village to the west. City planning officials cited proximity to SunRail and pedestrian corridors around Lake Eola Heights and Thornton Park as key reasons for the rezoning and height allowances.

"It’s the kind of urban density we need in the core," said an official in a public planning document. The tower will include a 600-space parking garage with charging stations for EVs, a bike hub, and streetscape improvements tying back to the city’s Vision 2050 comprehensive plan, which prioritizes walkable neighborhoods and multimodal transit.

Demand, Pricing, and Next Steps

Orlando’s downtown residential vacancy hit just 4.9% in May, the lowest since pre-pandemic years, according to CoStar analytics. Commercial brokers say demand for modern office space, especially with built-in residential and retail uses, remains robust even as national trends fluctuate. Dovetail’s managing directors confirmed they expect to break ground by December and deliver the first apartments by late 2028. Rents for studios are projected to start around $1,980 a month, with penthouses topping $4,500.

Residents and businesses nearby will see demolition begin in August, with a full year of construction-related lane closures planned along Colonial Drive and Magnolia Avenue. City leaders urge downtown drivers and commuters from the Milk District to check for traffic advisories this fall, and advise nearby businesses along Rosalind to monitor updates from the Downtown Development Board. Leasing for residential units is expected to open in mid-2028.