Doral Hotel-to-Multifamily Conversion

Asset Overview

This 112-unit property in Doral presents a compelling hotel-to-multifamily conversion opportunity adjacent to Miami International Airport and the region's primary corporate employment corridor. The asset totals 69,836 square feet with an average unit size of 624 square feet — efficient floorplans well-suited for workforce housing demand.

The property currently operates as a hotel. The sale includes the real estate only; the hotel business is not included in the transaction. This structure allows investors to execute a conversion strategy without assuming legacy operational liabilities.

Live Local Act Advantages

The asset qualifies under Florida's Live Local Act, providing significant tax advantages and expedited permitting pathways for workforce housing development. This legislative framework enables developers to bypass certain local zoning restrictions while receiving property tax abatements tied to affordable unit designations.

Financial Projections

At current market rents, the property demonstrates monthly rent roll potential of $241,248 and annual rent roll potential of $2,894,976. Stabilized NOI reaches $2,087,304, representing an 8.03% capitalization rate on the purchase price.

Return profiles range from 11–19% unlevered five-year IRR to 18–25% levered five-year IRR assuming 65% loan-to-value financing.

Value Creation Strategy

With approximately $10,000 per unit in interior upgrades and roughly $500,000 in property-wide enhancements — including clubhouse renovation, railing replacement, signage and branding updates, and smart home packages in renovated units — NOI can grow 37% from $2.37M to $3.25M over a five-year hold period.

The conversion model reduces development risk relative to ground-up construction while capturing residential rent premiums in a supply-constrained submarket. Existing infrastructure, vertical structure, and site improvements are already in place.

Market Context

Doral's employment density and proximity to MIA create natural rental demand from airport workers, airline crews, corporate tenants, and families priced out of core Miami submarkets. The area has transformed into a major business hub with multinational corporate headquarters and a growing residential population seeking affordable alternatives to Brickell and downtown Miami.

Investment Thesis

Hotel conversions have emerged as one of the most compelling value-add strategies in supply-constrained Florida markets — acquiring functional buildings at below-replacement cost and repositioning for residential demand. This asset combines favorable basis, tax-advantaged structure, and clear execution pathway in a high-demand submarket.