Liberty Plans Economy Hotel-Apartment Projects Totaling $138M

Value Place is DeBoer's newest hotel and apartment hybrid already surfacing in Wichita and Oklahoma City. About 48 other Value Places are under construction in various national markets. The product is geared for business owners, contractors and others who need temporary lodging for job assignments and to travelers who need short-term housing at weekly rates, DeBoer says.

In Central Florida, Liberty Investment Properties president Mike Mikkelson plans to start construction in July on its first 121-unit, 43,430-sf property on State Road 50 near US 27 and the Florida Turnpike in Clermont. The second 105-unit, 37,744-sf property will break ground in the fall at the intersection of US 441 and Clarcona-Ocoee Road in north Orlando. The third 121-unit, 43,430-sf Value Place also has a fall groundbreaking on State Road 423 (John Young Parkway), south of State Road 528 (Bee Line Expressway) in south Orlando.

DeBoer tells GlobeSt.com the three metro area properties, totaling 124,604 sf, will have a projected development cost of $16 million or an average $5.3 million per property and $46,110 per unit. On a per-sf basis, the estimated construction cost is about $128.

"Franchisees such as hotel owners, real estate and apartment developers and others can benefit from the brand's investment potential and operating efficiencies," DeBoer says. "Value Place offers lower start-up and operating costs which yield greater potential revenue per sf compared to traditional rental properties."

For Liberty Investment Properties, the franchise is ideal, Mikkelson says. "This may be a new industry for us, but it's not a new experience," he adds. "The transition to Value Place was easy because its operations are very similar to a self-storage facility."

Mikkelson founded Liberty in the early 1990s, primarily to develop and manage self-storage properties. He later signed with Shurgard Storage Centers as a joint venture partner. During this partnership, Liberty posted annual sales volume of $30 million. Now working independently, Liberty added a new division to its investment group: affordable, extended-stay lodging. Value Place is Liberty's first hospitality investment.