MKX Lakeside is situated at the center of Kissimmee, FL, offering convenient access to highways, shopping, dining, and major theme parks like Disney World and Universal Studios. The property boasts 150 units, including 136 studio units and fourteen one-bedroom or suites, all of which have been recently renovated. The county has approved re-zoning of this once-hotel to multi-family residences. Orlando is among the top five cities in America with the highest growth rate of multi-family rentals. The renovation budget allows for the installation of kitchenettes in each unit, an upgrade to the pool, renovation of the lobby to a functioning gym and co-working space, and the addition of outdoor civic spaces for the future MKX Lakeside tenants. Upon stabilization, the property is anticipated to have a value north of $31.8M, based on the high demand for studio units in the Kissimmee/Orlando area and comparable assets.
Absorption: Nearly 13,000 units have been absorbed in Orlando over the past year, comprising 2.3% of all multifamily absorption in the U.S., or equating to one out of every 50 units nationwide.
Rent Increase: Asking rents are up 23.6% year over year ($1380 for a 260 sf unit across the street)— more than double the National Index, and further growth in rents between 6% and 8% is projected by the end of 2024.
Low Vacancies: Fueled in large part by in-migration to the area, the market's vacancy rate hovered in the 7% to 9% range for the trailing 12-month period pre-pandemic before reaching a peak of 10% midway through 2020. Demand has since returned, dropping the vacancy rate to 4.9%.
Need for Market Rate Rent: The average median household income in Orlando is approximately 7% lower than the U.S. average, and yet rent growth in Orlando is outpacing the U.S. at large by a factor of more than two to one.
4985 W Irlo Bronson Memorial Hwy, Kissimmee, FL 34746, USA
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