West Coast investor spending $156 million to convert Dallas hotel to apartments

A Washington state-based private equity firm plans to spend more than $150 million to turn a Dallas hotel into workforce apartments.
Sage Investment Group plans to renovate the Homewood Suites by Hilton at 2747 N. Stemmons Freeway. Work is expected to begin in January and be completed in August. Estimated construction costs are more than $156 million, according to a filing with the Texas Department of Licensing and Regulation.
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No architectural work will be done in the units at this time, and all of the construction will take place at the property’s club house, according to the filing. Details in TDLR filings are preliminary and subject to change without notice. It’s unclear what additional work may be done at the property.
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Sage Investment Group respond to requests for comment.
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The firm works to address the country’s affordable housing shortage by converting 100 to 200-room hotels into apartments. Sage Investments owns 24 properties across five states. The firm’s goal was to add 1,000 additional units, expanding its presence to eight states by the end of 2024.
It typically takes the company six to 12 months to renovate properties they acquire before leasing begins.
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Built in 1997, the Homewood Suites hotel has 137 guest rooms, four meeting rooms and 2,364 square feet of total event space, according to Hilton’s website.
Adaptive reuse projects have been on the rise nationwide and in Dallas-Fort Worth. Dallas is one of the country’s top markets for office-to-apartment conversions.
More than 3,100 Dallas-area apartments were expected to be carved out of old office space this year.
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California-based Imninet Capital earlier this year announced plans to turn the former 395-room Sonesta Suites hotel into apartment homes.