Kissimmee West

Fairway America Management Group IV, LLC (“Fairway”) and Vivo Investments, LLC (“Vivo”) (collectively, the “Co-Managers”) intend to acquire a suburban midscale hotel (the “Property”) currently operating as a Wyndham Hotel in Kissimmee, Florida, and convert it to 86 apartment units (the “Project”).

The Co-Managers have acquired over 20 projects together as part of an opportunistic strategy to acquire functionally obsolete hotels at an attractive all-in cost basis in undersupplied markets, and then convert them into competitively priced studio, one- or two-bedroom apartments. Once the conversion of the Property is complete, the Co-Managers intend to refinance or sell the Property.

• Well-Located to Meet Renter Demand:  The Property is conveniently located approximately 8 miles from Disney World, the largest single-site employer in the US with over 75,000 employees.  The area has seen job growth of +6.2% in the last year following the reopening of tourist centers and attractions near Kissimmee.¹
• Shortage of Workforce Housing: A housing study in 2019 identified Kissimmee as having “the greatest lack of affordable housing in the United States, beating out bigger metro areas like Los Angeles and Las Vegas.”² Since then, Class B rents in Kissimmee have seen notable rent growth, reporting a +23.1% year-over-year increase in 2022.³
• Conversion Cost Below Similar Properties:  The Co-Managers believe that the all-in cost of conversion will be significantly less than the price that similarly renovated apartments have recently sold for. The all-in costs of the Project are estimated to be $173,953/unit, while the average market sale price is $230,000/unit.³
• Synergies With a Nearby Property Acquired by the Co-Managers:  The Property is located approximately 0.6 miles from another hotel conversion asset recently acquired by the Co-Managers (223 proposed studio units).  In contrast, the Property is proposed for 100% one-bedroom units, which the Co-Managers expect will provide prospective tenants optionality and appeal to a broader tenant demographic.  This also provides an opportunity for a potential portfolio exit.