A private equity firm based out of Washinton state plans a significant overhaul to convert a Dallas hotel into apartments.
The Homewood Suites by Hilton at 2747 N. Stemmons Freeway is set to be converted into apartment units as part of a $1.56 million project. Sage Investment Group is leading the change, with Houston-based Element Architects overseeing the design.
A filing with the Texas Department of Licensing and Regulation shows that the 11,000-plus square foot building will begin its conversion into a multifamily complex beginning early next year. The project is slated for completion by July 2025.
Sage focuses on purchasing hotels in high-growth markets and converting them to apartments.
According to the firm, the United States needs more than seven million more homes to help address the country’s housing crisis, an 8% jump from 2019. In Texas, nine out of 10 people say housing affordability remains a problem, according to a University of Houston Hobby School of Public Affairs and Texas Southern University Texas Trends 2024 survey.
“It takes us between six and twelve months to renovate the properties we acquire before leasing. When we open for business, residents can find fully-appointed units with brand-new finishes, full kitchens, and amenities like internet, cable, dog parks, and sometimes even indoor pickleball to enhance their living experience. Our units are typically the lowest cost in the market, even though they live like brand new construction,” reads a description of the firm’s strategy.
Sage Investments, founded in 2020, has $229 million in assets under management and has worked on more than 2,000 units. The firm typically selects hotels with 100 to 200 units that are close to employment centers and transit corridors. Sage owns two dozen properties across the United States but expects to acquire an additional 1,000 units before year’s end, expanding its footprint to three additional states.
The Homewood Suites hotel, built in 1997, has 137 guest rooms, four meeting rooms, and over 2,300 square feet of event space. Dallas is forecast to have more than 3,100 apartments converted from old office space this year alone.