PEG Companies Commences New Hotel-to-Apartment Conversion Project in Dallas

DALLAS, Tx – PEG Companies (“PEG”), a commercial real estate investment firm, known for its unique approach to creating value, has begun renovations in converting an aging 114-unit extended stay hotel into a vibrant new apartment community.

Located at 7880 Alpha Road, the former Sonesta Suites extended stay hotel will become Avia Apartments on Alpha upon its projected Q1 2024 completion. Improvements to the property include the addition of a business center and secure amazon locker hub, upgrades to the fitness center including a separate yoga room, new guest laundry rooms on each floor, and other cosmetic renovations. Apartment homes will include one- and two-bedroom units with a variety of amenity options including upgraded stainless-steel appliances and new light fixtures throughout, in-unit washers/dryers, and more.

Avia Apartments on Alpha joins a large portfolio of Avia-branded properties that PEG has converted or plans to convert through the PEG Extended Stay Conversion Fund [PEG ESCF]. Over the last few years PEG has attracted national and international attention for its unique ability to execute its hotel-to-apartment conversion strategy with precision entirely in-house through its vertically integrated team.

“The process begins with PEG Capital Partners. We underwrite, put the deal together, and then at that point, we bring in PEG Development who manages the entitlement process and construction process along with PEG Construction,” explained Soren Halladay, Chief Investment Officer at PEG Companies. “Meanwhile, PEG Hospitality Group will often operate the property as a hotel until we’re ready to actually convert it. Once entitlements are in place, PEG Construction performs the actual renovation work, and upon completion, PEG Property Group begins leasing up the new apartments as our property manager/operator.”

“Avia Apartments on Alpha is centrally located to several great amenities and is a short drive to the Dallas Fort Worth International Airport and several campuses including The University of Texas at Dallas,” said PEG Development Manager McKell Dalton. “With its convenient location and excellent conversion potential, we are excited to revitalize the building and, in turn, make a positive impact in the surrounding neighborhood.”

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