Developers will give unusual life to old $8M Charlotte hotel site. Here’s the plan
The coronavirus brought most travel to a halt, devastating the local hotel industry. But for Blaze Partners and Argosy Real Estate Partners, it also was an opportunity to create a new purpose for a shuttered building.
The two out-of-state firms partnered to purchase an extended stay hotel in University City, across from the McCullough light rail station, in an $8 million acquisition that closed last week. They started work Monday on transforming the hotel into apartments.
The former Homewood Suites by Hilton contains studio, one- and two-bedroom units, according to a release from the companies.
Chris Riley, managing partner at Charleston-based Blaze Partners, said it’s the first of several deals of its kind that his firm is working on throughout the Southeast. The state of the hospitality industry during the COVID-19 crisis was one of the main reasons they decided to buy the Charlotte hotel.
And the building itself was easy to convert to apartment units, he said.
Riley said that structurally, the buildings are very similar to traditional multifamily, although the units are slightly smaller at an average of 500 square feet. And because it was an extended stay hotel, the units already have kitchens in place.
The renovations involve cosmetic upgrades and improving the interior of the units as well as common areas like the gym, pool and leasing office.
A growing trend
As cities across the country struggle with a shortage of affordable housing, a small but growing number of developers are turning to old hotels and motels as a potential solution, especially amid COVID-19.
Vivo Living, a California-based investment firm, has acquired five hotels to convert to multifamily across the country, including one in Winston-Salem.
In Charlotte, nonprofit Roof Above announced late last year it had purchased an 88-room hotel on Clanton Road near Interstate 77 to use as winter shelter. This year, they will convert the units into studio apartments for people who are chronically homeless.
The apartments at the former University City hotel will not be subsidized, but Riley said when they open, they will cost under $1,000. That’s about $250 less than the average rent in the University area, he said.
“We think we have an opportunity to offer a relatively inexpensive price point,” he said.
This story was originally published March 10, 2021 at 12:33 PM.
