1116 Grinnell Street

Description

Extraordinary and rare Investment opportunity in the robust Key West lodging market, The Grand Guesthouse is nestled in a quiet residential neighborhood 7 short blocks from Duval St in the very heart of Old Town. Walk, bike, or scooter your way around the Historic District and enjoy the excellent restaurants, bars, shopping, and beaches. Bike to the HarborWalk to catch your sunset sail or fishing charter, or dive and snorkel the reef, or kayak the back country - the opportunities are endless and convenient from this property, ideally located close to all the action.Listed at an 8.07% cap rate, the transient-licensed 10 guest rooms and suites have been completely renovated. In addition, exceptional upside exists with immediate value add opportunities including (1) a spacious 2 bd/ 1 bath apt currently used by the owners that has a non-transient license, allowing for vacation rentals and significant increased income, (2) the 8.07% cap rate is based on 2022 financials with an occupancy rate of only 73% compared to 86% citywide, and (3) a historic B&B liquor license is available from the State at minimal costs allowing for the sale of alcohol via in-room mini-bars, or other tiki bar type setup. This license in addition to the restaurant license already in hand for current owners.The original house was built in the 1880's as a rooming house for workers at the cigar factory at the end of the block. The property was converted into and used as a single-family home from the 1940's to the 1960's when it was converted back to a rooming house. In 1998, the property was transformed from its humble beginnings into The Grand Guesthouse. Today, each of the 10 guest rooms and suites feature en suite bathrooms, private entrances, A/C with ceiling fans, cable television, USB charging stations, a small refrigerator, and tropical decor. Lush tropical landscaping and outdoor seating areas wait for guests to enjoy breakfast and the courtyard. www.thegrandguesthouse.com.