I love a good puzzle...
Kathi, you're right that the Magnolia Motel on E. Magnolia was razed a few years ago. If you are familiar with the Arlington Hotel (tall green building that still dominates that area of Wildwood), the Magnolia was directly across the street. In its final years, it was known as the Deco Motel.
The rooms above the old Magnolia Restaurant (on Pacific) from Dave's photos operated at one time as the Sparatan Apts. This name is taken from an old postcard, so I assume that the name is right. Although, as you point out, it may have been misspelled, and was supposed to be 'Spartan.' If it was correct, I guess Sparatan was the name of the family that owned it...?
It is also very possible that those units operated under the name 'Magnolia Apts.' at one point.
Additionally, there is an L-shaped, three (maybe four?) story structure directly behind the Magnolia House complex that looks like it might have functioned as a motel/apt. house in a previous life. I'm not positive that it did, but if so, I wonder if it was connected to the restaurant/apts. directly in front of it.
Furthermore, I'm not sure whether this building has survived the restaurant building or not. Assuming that the units have more recently been used as condos, I would guess that it has.
... Have I just made this more confusing?