Two motels on Kissimmee’s Vine Street corridor sold last week to the same investor for a combined $12 million and may be targeted for residential conversion.
The Golden Orchid Inn at 1620 W. Vine Street sold for $2.4 million cash. The 56-key budget motel sits on a .8-acre lot and has 56 keys. It was built in 1973.
Randy Taylor, vice president of DSH Hotel Advisors, marketed the property for sale and said it generated interest as a potential rehabilitation, adaptive reuse or retail location.
“We had 15 offers on the property,” Taylor said. “We had such a wide variety of buyers because of the location and the key count.”
Nearby, the 174-key Weinan Hotel at 4104 W. Vine St. sold for $9.57 million. It was built in 1982 and sits on about 3.5 acres at the southwest corner of Hoagland Boulevard and Vine, just north of Kissimmee Gateway Airport.
The buyers of both properties are a consortium of international investors managed by Four Square Realty Investments, which is based in Fort Myers. An affiliate of Edgewood Capital Advisors loaned the buyer group $6.72 million for the Weinan Hotel. The Golden Orchard Inn transaction was a cash sale brokered by DSH Hotel Advisors.
The new owners have not filed any plans or permits with the city of Kissimmee, but city officials said they did hold a pre-application meeting with the previous owner of the Golden Orchard several months ago to discuss a potential conversion project.
“Given the current layout of the hotel and our current standards, we suggested a teardown and rebuild,” Development Services Director Craig Holland told GrowthSpotter.
Distressed motels on U.S. 192 are hot commodities now for the residential conversion market, especially in Osceola County, which has a shortage of affordable housing. Last year Osceola County Commissioners enacted an ordinance setting strict development guidelines for motel conversions. More often, investors are looking inside the Kissimmee city limits or in jurisdictions, like the City of Orlando, which has been more supportive of the concept.
California-based Vivo Living purchased two hotels in the Kissimmee city limits. The former Ramada Inn is being converted now, while the developer filed a Site Specific Redevelopment Plan and design package for the former Baymont by Wyndham at 4156 W. Vine St. earlier this month.