An extended-stay hotel in Arlington, Virginia, is set to be converted into multi-family apartments. GoodHomes Communities acquired the Arlington Court Suites, a 187-room hotel, for $35 million. The buyer plans to redevelop it into a 180-unit apartment building.
KLNB announced the completion of the transaction. In collaboration with HREC Investment Advisors, they represented the seller, Arlington Hotel Holdings, which is operated by Sunburst Hospitality. The property is located at 1200 North Courthouse Road and spans 219,000 square feet.
Property History and Financing
The property was originally built as an apartment complex in 1963. In the 1980s, it was converted into an extended-stay hotel. With Arlington County's approval for conversion back to apartments, this sale joins the growing number of adaptive reuse projects in the region. NewPoint Real Estate Capital provided $34.6 million in financing for the property.
This deal expands GoodHomes' redevelopment strategy, which aims to convert older hotel properties into multi-family housing. The KLNB team consisted of Rawles Wilcox, Justin Shay, and Dutch Seitz. Mark Morris and Scott Stephens were involved for HREC.
Trend Towards Adaptive Reuse Projects
The repurposing of hotels into residential accommodation reflects a broader trend of adapting existing structures to new market needs. This is particularly relevant in densely populated urban areas where demand for housing is rising, and vacant or underutilised properties can be transformed into desirable assets. Such projects contribute to sustainable urban development and can optimise the use of existing infrastructure.
