Recently, a famous real estate investment firm in the United States found the scope to transform shuttered hotels into workforce housing units says Maxwell Drever. According to reports, this firm has completed one such conversion project in Florida and is currently working on another project nearby.
Maxwell Drever reports that this firm has already acquired a three-building, six-story hotel for establishing an approximately 254-unit complex, which will have a monthly lease of $930. The property is situated close to Disney World, and the firm wants to establish this property to draw in the park workers. Furthermore, the hotel owner connected with the concerned real estate investment firm to ask them if they would be keen on managing a similar hotel conversion project to fight the pandemic crisis. The firm’s spokesperson further asserts that the location close to the previous project and being close to Disney, a huge U.S-based non-government employer, had resulted in this unprecedented opportunity.
The company spokesperson shared that they are mindful of the location. They are also aware of the demand drivers from the nearby area. Also, they aim to be helpful in the affordable workforce housing domain and remove the lack of sensitive price-point housing. They wish to come up with a solution in this domain in the market.
Maxwell Drever emphasizes the growing trend
The entire hospitality domain and resort across the United States have suffered because of the pandemic outbreak. However, such properties have a chance to be put to meaningful use. The experts say that this trend can occur where there is a requirement for a quality rental, conveniently located properties which the working people can opt-in for.
The repurposing of the projects comprises converting the hotel properties and sometimes extended-stay properties with kitchenettes and bathrooms into students. Senior or multifamily housing. The interest in the conversions has increased in the United States during COVID-19. And the current activity highlights that the overall market value for the hotels. Which are selling for the conversions in the coming 5 years will vary between $25 billion and $30 billion.
A few things to remember
However, Maxwell Drever says that not all distressed properties can result in an incredible conversion to an affordable housing unit. But there are specific assets based on the services, location, and cost implicit in the current use and use. Making it a good option for getting transforming into an affordable workforce housing unit.
The hotels usually are easy to convert into affordable housing. The primary reason is that they already come configured in a kind of residential housing unit. Along with the short-term stays. Also, it comprises the basic modules that can get a transformation into apartments to cater to a market. It generally comes with a specific amenity and provides ample extra space for converting it into multiple uses. It is also correctly located.
The commercial office space also has been transforming into apartments globally! The building bracket gets use, and the property is economically viable. The building services, substructures, elevator shafts, and elevators can retain, but eventually, everything will change to support the conversion.