T2 Capital Management, LLC (“T2”), an Illinois-based real estate investment company, today announced an investment in Kissimmee, Fla. Utilizing the T2 Opportunity Fund V, T2 is continuing its growth in the workforce housing space through its acquisition of the 555-room, 292,450 SF Red Lion hotel at 7300 West Irlo Bronson Highway in Kissimmee. Situated on a 15.8-acre site directly across the street from Disney World, the hotel will be converted to a 339-unit multi-family property that includes ±28,000 SF of retail space. The property will be commonly known as “Maingate Village.”
With construction scheduled to commence in February 2020, and completion expected in early 2021, the multi-family units will be delivered in phases and are expected to largely cater to Disney personnel and local service professionals. Disney is the largest single-site employer in the USA with over 74,000 employees within the Orlando Metropolitan Area.
“We’re excited to bring a much-needed housing solution to the many service professionals and their families within an area in which it is challenging to find quality, affordable housing,” said Jeff Brown, Co-Founder and CEO of T2 Capital Management. “We are particularly enthusiastic about this location, situated near one of the largest theme parks in the world, to utilize our capital and invest in workforce housing.”
Rental rates at Maingate Village will start at $725 per month and the property will offer resort-style amenities, including three swimming pools, tennis courts, and a full fitness center.
To aid in the execution of the development, T2 has partnered with Orlando-based Cornerstone Asset Services (“Cornerstone”). Cornerstone has an equity position in the project and will be managing the property on a day-to-day basis.
Maingate Village is the latest of several investments that T2 has made in Florida. Other current investments include senior housing, student housing, and residential condominium developments.