8212 Midnight Pass Rd
Sarasota, FL 34242
Siesta Key Bungalows · Hospitality Property For Sale · 6,365 SF

Siesta Key Bungalows is a 1950’s, vacation rental community in the Siesta Key submarket of Sarasota, Florida and was recently awarded TripAdvisor’s "Excellence Award" and "White Glove Award" from Superior Small Lodging. Located minutes away from major demand drivers and points of interest. Siesta Key Bungalows consists of four buildings, totaling ten units. This offering presents investors the opportunity to own a recently renovated property in a class A market with significant upside and located in a strong vacation rental demand submarket. Each building is constructed of concrete block construction with three flat roofs and one pitched shingle roof. Units consist of one-bedroom/one-bathroom units averaging 549 square feet. Tenants are afforded some of the best amenities for like-kind rentals as the property includes a swimming pool, on-site laundry, bike and kayak rentals as well as lagoon access. Recent capital improvements include majority tile floors, new kitchen cabinets, appliances and hurricane proof windows in select units. Siesta Key Bungalows allows an investor to purchase a tremendously located property with an in-place 7.08% cap rate and upside potential in lease rates. Assuming the purchase is financed with current available rates and terms, an investor can expect a cash-on-cash return of 7.81% on current income with the ability to increase the cash-on-cash return to over 20% and increase it each year thereafter as markets continue to move up. This return is achieved by increasing occupancy and revenue by utilizing automatic room pricing software, online marketing and booking platforms as well as implementing strategic interior improvements. On a ten-year hold, an investor can expect an average annual return (IRR) of over 28%. Additionally, the property has been approved as a condotel which brings yet another potential exit strategy into the equation for a new owner. Siesta Key Bungalows is conveniently located on Midnight Pass Road, a major north-south thoroughfare providing access to all of the main attractions America’s finest beaches have to offer. Situated on a lagoon and just minutes from major visitor attractions, the property offers guests a central location with convenient access to many activities. Major points of interest in close proximity to Siesta Key Bungalows include Siesta Beach (3.4 miles), Crescent Beach (1.4 Miles), Turtle Beach (1 Mile) and Siesta Key Village (4.3 miles). Located 7.5 miles from Siesta Key Bungalows, is Interstate 75, giving access to Sarasota, Bradenton and Saint Petersburg to the North, as well as Port Charlotte, Cape Coral and Fort Myers to the South. Featuring 99% quartz, Siesta Key is well known for its sand. Siesta Key won an award from the International Sand Contest in 1987 for having the best overall sand in the world. In 2004, the Travel Channel’s Best Beaches in America featured Siesta Key as the Best Sand Beach on the planet. In 2017, Dr. Beach rated Siesta Beach as No. 1 Beach in the U.S. among 650 U.S. beaches surveyed based on 50 different criteria.