T2 Capital Management is finding an opportunity to convert shuttered hotels into workforce housing. The firm has already completed the conversion of one hotel into a workforce apartment complex in Kissimmee, Florida, and it is now working on a second conversion just a mile away.

"We are mindful of the location and the demand drivers in the surrounding area," Jeff Brown, co-founder and CEO at T2 Capital Management, tells GlobeSt.com. "We have a desire at T2 to be helpful in the workforce housing space and to alleviate the shortage of price-point sensitive housing. We want to be part of the solution in that market, and that led us to do our first project in 2019."

The firm has acquired the six-story, three-building Baymont Hotel to build a 254-unit apartment complex that will lease for $930 per month. The property is located near Disney World, and T2 plans to build the property to attract park workers. CrowdStreet provided the equity for the project through a capital raise with a pool of 184 investors. "The owner of the Baymont Hotel reached out to us and asked if we would be interested in doing a similar hotel conversion project as COVID had set in," says Brown. "The location near the earlier conversion project and being nearby Disney, which is the largest non-government employer in the United States, made this a unique opportunity."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.