ARLINGTON, VA — Arlington's housing supply is expected to grow after the $35 million sale of Arlington Court Suites, an extended-stay hotel that will be converted into apartments.
The 187-unit hotel at 1200 North
Courthouse Road was sold to GoodHomes Communities in a transaction that closed June 18, according to commercial real estate brokerage KLNB and HREC Investment Advisors, which represented the seller, Arlington Hotel Holdings Inc.
The 219,000-square-foot property is expected to be converted into a 180-unit multifamily rental community. According to the brokerages, Arlington County has already approved the property's conversion from hotel use to apartments.
Constructed in 1963, the building originally served as an apartment complex before being converted into an extended-stay hotel during the 1980s. The property includes a mix of studio, one-, two- and three-bedroom floor plans that the brokerages said are well suited for residential use.
KLNB's multifamily capital markets team, led by Principal Rawles Wilcox, Senior Vice President Justin Shay and Vice President Dutch Seitz, partnered with HREC Investment Advisors' Mark Morris and Scott Stephens to market the property.
According to the firms, the marketing effort targeted a wide range of potential buyers, including hotel operators, apartment developers, timeshare companies, senior housing operators and assisted living providers.
"By combining KLNB's deep rooted knowledge of the Arlington apartment market with HREC's hospitality expertise, we provided a comprehensive approach that put our client's strategic goals first," Shay said in a statement. "Our team utilized our relationships with active regional developers to highlight the undeniable conversion potential of the asset."
HREC Senior Vice President Mark Morris said the joint marketing effort generated more than 20 offers from both hotel operators and apartment developers.
"This deal was a terrific example of two teams aligning to drive maximum market exposure and secure the absolute best terms for the seller," Morris said in a statement.
The acquisition marks GoodHomes Communities' purchase of another hotel property for residential conversion and adds another multifamily redevelopment project to Arlington's housing inventory.
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