Kissimmee’s Real Estate Boom: Major Redevelopment Plans Set to Transform Former Kmart Site

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Kissimmee’s commercial real estate market is heating up like never before  and a long-vacant property could soon become the city’s newest showpiece.

Three major developers - Skyview Companies, Wendover Housing Partners, and Capstrata/Hedrick Brothers,  have submitted proposals to transform the former Kmart and Big Lots site on W. Vine Street into a vibrant, walkable, mixed-use destination. The 22-acre property could soon be home to a thriving neighborhood with shops, restaurants, residential communities, and even waterfront amenities.


The Vision: From Asphalt to a Walkable Waterfront Community

Each proposal centers around the idea of blending residential living with retail, dining, and green spaces, but the scale and style vary.

Skyview Companies

Skyview’s $325 million plan reimagines the site with:

  • 900+ residential units

  • 84,000 sq. ft. of commercial space

  • A waterfront plaza designed to be the heart of the community

  • Tree-lined streets, bike lanes, and wide sidewalks for walkability

  • Phased development, including a flagship waterfront restaurant and 31 townhomes overlooking the lake

  • 10% of units reserved as affordable housing

Wendover Housing Partners

Known for its expertise in mixed-income communities, Wendover’s $140 million concept features:

  • 328 rental units

  • 66,000 sq. ft. of retail and commercial space

  • Transit-friendly design

  • A strong focus on affordability and community integration

Capstrata/Hedrick Brothers

While their full plans remain under wraps, Capstrata promises a bold, market-responsive vision with a strong focus on Kissimmee’s long-term community needs.


A City on the Rise

This redevelopment is just the latest in a wave of investment in downtown Kissimmee, with new hotels, residential projects, and commercial developments reshaping the city’s skyline.

Recent highlights include:

  • Mosaic Apartments at Lakefront Park

  • The Allen Apartments on the Beaumont site

  • Planned boutique hotel & condo-loft project at Toho Square

  • A luxury 200-room hotel and convention center coming to the Civic Center site

Kissimmee Development Services Director Craig Holland says the city’s transformation is finally catching the attention of developers and hoteliers alike,  after years of limited interest.


What This Means for Kissimmee’s Real Estate Market

For homebuyers, investors, and business owners, Kissimmee is quickly becoming one of Central Florida’s most dynamic markets. The former Kmart site is poised to become a high-demand address, surrounded by shopping, dining, and entertainment, with the added bonus of waterfront living.

As these projects move forward, property values and demand in the downtown Kissimmee area are expected to rise, making now an excellent time to explore opportunities.


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