The pandemic outbreak has indeed resulted in massive loss and chaos worldwide. But akin to every crisis, even this pandemic also brought about a bright side says Maxwell Drever. It’s true that this invisible virus has been debilitating and had killed several people across the globe. It is still changing forms and mutations and making a comeback. However, there has been a new investment scope for the real estate professionals amidst all these. When used correctly, today, there exists a chance for the real estate groups to enhance the condition of the affordable workforce housing and resolve the crisis to a huge extent. But it will certainly take some time for the condition of the housing crisis to change and resolve itself.
Maxwell Drever says that the hospitality sector had witnessed ample loss during the pandemic. And as the vaccination drive was at its full swing and the government agencies were taking measures to bring down the spread of the virus, the hospitality sector had some hope to bounce back.
According to the latest market research, most hotels will take about two to three years to bounce back. Hence, it makes perfect sense to the hotel owners to convert their properties to affordable workforce housing which enables them with the chance to monetize the property and search for other ways of survival. And this in return will provide shelter to people who need it the most.
The conversion of hotels is cheaper than a completely new construction
Owing to the hotel industry’s predicament, most developers are converting the financially distressed motels and hotels to provide shelter to multifamily households. The affordable rental development and workforce housing can prove to be cost-effective for the increased land costs, limited building and zoning codes and various other factors, especially in places like Seattle, San Francisco, and New York.
Maxwell Drever says that establishing a multifamily development in any metropolitan region can range between $150,000 and $200,000. It often gets compare to an amount of $60,000 and $70,000 every unit for the conversion. The reduced conversion cost leads to the capacity to provide affordable rents to the household residing in the units once it gets completed.
Today, several hotels are getting converted to workforce housing units. These properties are best to transform into a one-bedroom or a studio unit. And usually have facilities like a fitness center, parking, and pool. It also comprises other features and facilities required by the lower and middle-income group families to lead a stable life. While carrying on with their profession.
Such initiatives of hotel conversions into affordable workforce housing units are increasing. And to execute this process seamlessly. Most real estate groups and other developers are planning to join hands with an assessment and valuation firm. These firms come with great expertise in the projects that helps to avert multiple challenges in executing such projects. They also help determine the feasibility of converting the hotel into a housing unit. Furthermore, the firm also navigates through a challenging mix of building, zoning codes and various other requirements.