Hotel to multifamily?

[Alex Bro]

Possible deal I am looking to make happen with a rundown hotel. The issue is I don't see it viable as a hotel anymore, but the deal may still work if I can convert it to multifamily. Does anyone have experience doing so here in the San Antonio area?

[Percy N.]

We converted 88 units of an extended stay-style hotel into corporate housing in another market (maybe will do a blog post on it if we get time).

The key is making sure there is demand for these types of units. We had 66 studios and 22 studios with a loft.

In our case, each of the hotel units had a kitchen so we were able to use that layout without major modifications.

Purchase and construction of all the exteriors and interiors was about $6mm and we sold for $12mm.