The Opportunity

The Red Lion investment consists of the conversion of the 500-room Red Lion Hotel located in Kissimmee, Florida into 339 affordable rental units targeting key worker demographics from neighbouring Disney World. The site was acquired through an investor partnership with a US asset management firm in December 2019 and has so far obtained the necessary zoning to convert the asset from a hotel into a residential site, usually the main planning hurdle in Florida. Rentals will be the most affordable product in the area compared to competition and will take advantage of the housing shortage in the area.

The complete asset will consist of 158 studio apartments and 143 one and two bedroom apartments, and construction commenced in January 2020. The hotel will operate during construction period to July 2020 to provide additional income whilst works commence.

The Market

Red Lion will be one of the closest apartment complexes to Disney World, within a five-minute drive. Disney World is the largest single-site employer in the US, with over 75,000 employees, and is currently undergoing a $1b expansion. The close proximity to the theme parks makes the asset particularly attractive, and extensive market analysis by Reditum and Colliers has ensured the scheme will offer the most affordable product in the area by at least 10%.

Kissimmee is currently experiencing a housing shortage, particularly for affordable housing due to an increasing population. From 2010-2018, the area has seen an impressive 46% increase in population within a 5-miles radius of the asset, proving the demand for the new supply of apartments Red Lion will provide. The location of the asset also benefits from excellent visibility as it is positioned on US Route 192, one of the main highways in Florida. 70,000 cars travel on the road each day which provides direct access to Disney World and a large number of resorts and hotels also in the vicinity.

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