Investor Converts Dallas Hotel Rooms to Apartments

The PEG Cos Extended Stay Conversion Fund LP has raised $130 million for a conversion program. So far they’ve purchased 15 extended-stay hotels. The latest is the Sonesta Es Suites Hotel in Dallas. It has 114 one and two bedroom units in a single courtyard building. PEG Cos plans to convert those rooms into a rental community, called Avia Apartments. The company describes the property as part of a large portfolio of extended-stay hotels that Peg Cos has acquired for conversion into high quality Class B multifamily developments.

Peg’s Alex Murphy has more, “The properties lend themselves to efficient and cost-effective conversions. Because most extended-stay hotels inherently already have the key features for comfortable apartment living—private entrances, full kitchens, convenient amenities packages—these types of acquisitions are ideal for our hotel-to-apartment conversion process.”

The developer plans to begin construction of the North Dallas hotel in February and complete work by next summer.