Arlington, Va., Hotel-to-Resi Project Sells for $35M

An extended-stay hotel in Arlington, Va., is set to be transformed back into multifamily housing.

GoodHomes Communities put down $35 million to acquire the Arlington Court Suites, a 187-key hotel that the buyer plans to convert into a 180-unit apartment building. KLNB announced the deal and, together with HREC Investment Advisors, represented the seller, Arlington Hotel Holdings, run by Sunburst Hospitality.

NewPoint Real Estate Capital provided a $34.6 million in floating-rate financing for the the acquisition and planned conversion, Commercial Observer can first report.

“This transaction underscores the increased momentum behind adaptive reuse opportunities, particularly in high-barrier-to-entry markets like Arlington,” Jacob Gabriel, director at NewPoint, said in a statement.

The 219,000-square-foot development is at 1200 North Courthouse Road. It was built in 1963 as an apartment complex but changed to an extended-stay hotel in the 1980s.

With Arlington County approving the conversion back to apartments, the sale adds to the growing number of adaptive reuse projects in the region. Similarly, the deal extends GoodHomes’ redevelopment strategy to reposition aging hospitality assets into multifamily housing.

“We continue to see compelling opportunities to convert underutilized hospitality assets into much-needed housing,” said Adam Feldman, managing partner of Goodhomes Communities.

The KLNB team included Rawles Wilcox, Justin Shay and Dutch Seitz, and HREC’s team included Mark Morris and Scott Stephens.

Keywords: 1200 North Courthouse Road, Adam Feldman, Arlington Court Suites, Dutch Seitz, Jacob Gabriel, Justin Shay, Mark Morris, Rawles Wilcox, Scott Stephens, Arlington Hotel Holdings, GoodHomes Communities, HREC Investment Advisors, KLNB, NewPoint Real Estate Capital, Sunburst Hospitality