OVERLAND PARK, KS – PEG Companies [PEG], a leading commercial real estate investment firm known for its unique approach to creating value, has acquired a second extended stay hotel in Overland Park and begun leasing the units as apartments.
Formerly known as Cloverleaf Suits, the 112-key complex is now called the AVIA Apartments at 110th Street. The property, located at 6300 W. 110th Street, will undergo renovations over the next several months as PEG’s team of property managers, PEG Property Group, continues to lease it up.
“While this property was well maintained by its previous owners, we are excited to begin its transformation into quality Class B apartments,” said Soren Halladay, Chief Investment Officer at PEG. “We’ll be replacing cabinets, countertops, flooring, light fixtures, paint, and more. We’ll also be remodeling the common areas, improving the pool, and adding new amenities like a fitness center for our residents to enjoy.”
PEG’s investment strategy to convert extended-stay hotels into Class-B multifamily housing is structured as a value-add fund that focuses on urban/suburban-urban core markets across the United States. In February, PEG acquired the Hawthorn Suites on College Boulevard and is now executing on the firm’s streamlined conversion process at that property.
“Like many communities across the country right now, Overland Park is in dire need of workforce housing, but it’s difficult to build from the ground-up these days,” explained Cameron Gunter, Founder/CEO of PEG Companies. “The high costs of land and construction materials are, in many cases, preventing the much-needed development of attainable housing. By converting existing hotels that already resemble apartments in design, we believe we have found a cost-effective way to help fill the growing demand for Class B housing.”
AVIA Apartments at 110th Street became PEG’s 16th extended stay hotel acquisition and the 5th property to join the PEG Extended-Stay Conversion Fund [PEG ESCF]. PEG will continue to add similar conversion properties to its growing portfolio through 2023.
Click here to learn more about PEG’s Extended Stay Conversion Strategy.