Columbia Pacific Advisors Finances Conversion of Florida Hotel to Extended Stay Micro Unit Community
Hudson Holdings is a mixed-use developer specializing in the acquisition, development and adaptive reuse of retail, residential, hotel and office properties. In 2005, Hudson Holdings purchased the independent hotel with plans to reflag it as a Doubletree Hotel. Hudson Holdings soon decided to revitalize and enhance the long-standing property with Micro Suites to serve both short-term and extended stay guests.
According to a 2017 HUD report, the multifamily housing market conditions in the Orlando metropolitan area are tight, with demand for apartments exceeding the supply with 6,925 units absorbed and 6,575 new units added.
"A large portion of the workforce in the market are employed in the service and retail industries where salaries are typically close to minimum wage and it is difficult for people in the area to find units that accommodate their limited budgets. Our goal is to provide this vital workforce with attractive and flexible housing options," said Steven Michael, Managing Director of Hudson Holdings.
The project is underway and all 403 rooms are being modernized with carefully planned amenities and furnishings. Columbia Pacific's financing package includes a capital expenditure for this update. The plans allow for completion without disrupting current Extended Stay guests. Michael says "By updating one floor at a time, no one has to vacate. As our goal is to improve the housing options, termination was never an option."
It is anticipated the first Micro Suite will come online by the end of June and all 403 units will be updated by Fall.
Earlier this year, Columbia Pacific Advisors through its bridge lending platform funded $10.25 million in short-term debt to complete the conversion of a former RV Park into a "tiny home" resort community near Salem, OR. Billy Meyer, managing director of real estate lending for Columbia Pacific Advisors, said the experience gained through that deal helped his team to understand and get comfortable with Hudson Holdings' business plan.
"There are numerous complexities in repositioning a pre-existing hotel into an attractive Extended Stay Micro Suite and, candidly, there are not a lot of examples to lean on." Meyer said. "Our ability to delve deep into the micro-unit submarket stems from our familiarity with the concept that took off in our home market of Seattle over 10 years ago. That allowed us to see where the demand drivers were for these specific living situations and helped us to get comfortable with the project."
Meyer added that tiny homes and micro-units are part of a developing market that Columbia Pacific Advisors feels has great growth potential.
"It's a space we believe is still in the early innings and helps to address great need for affordable housing," Meyer said.
About Columbia Pacific Advisors
Columbia Pacific Advisors (http://www.columbiapacific.com) is a Seattle, WA-based investment firm with more than $2 billion in assets under management. Through its real estate bridge lending platform, Columbia Pacific Advisors provides short- to intermediate-
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