* We are now passing by Magic Castle.

What is the part of speech of 'by'?
Do I have to capitalize 'Magic'?
What is the part of speech of 'Magic'?
Is it a noun or an adjective?

1. "by" is a preposition. "by Magic Castle is a prepositional phrase behaving as an adverb modifying the verb "are passing".

2. Yes, capitalize Magic Castle if it is the name of a specific place.
If it is NOT a specific place then your would say "by the magic castle".
3. If Magic Castle is a specific place it is a proper noun. If it is not a specific place, then it would be an adjective modifying 'castle'.

To determine the part of speech of 'by' in the context of the sentence, we need to analyze its function within the sentence. In this case, 'by' is used as a preposition to indicate the location, indicating where the speaker is currently located.

Regarding the capitalization of 'Magic' in 'Magic Castle,' it depends on the specific capitalization rules. If 'Magic Castle' is the proper name of a specific place, like a venue or landmark, then it would be capitalized. However, if you are referring to a generic castle that happens to be magical, the word 'magic' would not be capitalized.

The part of speech of 'magic' in the phrase 'Magic Castle' is an adjective. 'Magic' describes the type or quality of the castle, indicating that it possesses some kind of magical or enchanting attribute. Adjectives modify nouns, so 'magic' is modifying the noun 'castle' in this context.