Developer to convert Naples hotel into workforce housing | Business Observer
A development company specializing in converting hotel properties into multi-family resorts has purchased a Super 8 by Wyndham Hotel in Naples.
K2 Developers paid $9.6 million for the 104-room hotel on Tollgate Boulevard off Collier Boulevard near the Interstate 75 ramp.
The company, with offices in Coral Gables and Boulder, Colorado, did not respond to multiple requests for comment, but publicly acknowledged that it was turning the hotel into much-needed workforce housing in the region.
Although the company does not speak, its website details its approach to business and its mission. K2 says it is looking for properties in areas with large resort communities in need of affordable housing for the “local workforce, who struggle to find budget housing”.
The company is rushing into these markets and buying properties to turn them into “amenity-rich, transit-oriented, multi-family communities at a discounted rental rate compared to market-priced housing.”
There is no doubt that Napoli needs affordable alternatives for workers.
Finding affordable housing in the city, or in most municipalities along the Gulf Coast, is becoming increasingly difficult given the high rate of population growth. This growth, more than 800 people per day according to the state, has helped to drive up rents as demand far exceeds supply. And with interest rates rising and home sales slowing, some fear rents, relative to two years ago, will remain high for some time.
Naples tenants are seeing the worst of this trend.
According to an August report titled The Most Expensive Areas to Rent in 2022, the Naples-Marco Island area saw rents jump 28% last year, the largest change in average rent prices in the world. country.
One solution that some developers, like K2, have found is the repurposing of existing properties, especially hotels.
In Pinellas Park, a Miami company named Eagle Property is developing an apartment complex out of two hotels in a high-traffic area of Pinellas County between St. Petersburg and Clearwater. The hotels were the 95-room TownePlace Suites by Marriott and the 88-room Residence Inn. The two properties span 11.9 acres and upon completion will have 183 studio, one and two bedroom apartments ranging in size from 500 square feet to 850 square feet. Rents will start at $1,250. That’s 42% less than the city’s median rent of $2,171.