PEG Companies Secures Building Permits for Hotel-to-Apartment Conversion in Jacksonville, Florida

JACKSONVILLE, FL – PEG Companies [“PEG”], a vertically integrated commercial real estate investment firm, has secured building permits for a hotel-to-apartment conversion project that, upon completion, will become Avia Lofts on Liberty Ridge. 

Located at 8365 Dix Ellis Trail, the 112-unit property previously served as a Sonesta Suites extended-stay hotel. PEG acquired the building as part of a nine-property portfolio in April 2022 and continued operating it as a hotel for nine months before commencing work to initiate the property’s conversion into a multifamily community. Renovations include new flooring and paint, expansion of the amenity package, installation of a fire suppression system, and landscaping improvements. Additionally, 56 of the units will include premium upgrades including new quartz countertops, painted cabinets, new stainless steel appliances, and in-unit washers and dryers.

“PEG is proud to be able to breathe new life into this asset and to help improve the surrounding Baymeadows community,” said Tyler Phelps, Director, Development at PEG. “Our goal with this project is to make a meaningful impact by providing a quality housing option at an attainable cost for residents.”

PEG joins many others in the Baymeadows area currently working to revitalize the neighborhood, as two more hotels—located less than 0.5 mile away—undergo similar conversions into multifamily communities. With direct access to I-95, the central location boasts a 15-minute drive to downtown, a 30-minute drive to the airport, and less than a 30-minute drive to the beach.

Leveraging PEG’s vertical integration, the firm deployed their own in-house contractor PEG Construction to complete the renovations. PEG Construction is well-experienced with conversion projects having successfully completed several others across the country.

“These hotel-to-apartment conversions can be tricky to navigate sometimes,” explained PEG Development Manager McKell Dalton. “That said, being a full-service firm gives us several advantages. For instance, working with our in-house contractor allows us to save money, maximize communication and efficiency, and pivot quickly when necessary because we’re all on the same team and working toward the same goal.”

PEG Construction will continue executing on renovations through the end of the year. PEG Property Group, PEG’s multifamily property management arm, will then begin the lease-up process at Avia Lofts on Liberty Ridge in Q1 2024.

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