The owners, Utah-based PEG Companies, acquired, converted, and sold the property in less than two years, generating a 2.0X equity multiple for their investors.
AUSTIN, Texas / ACCESSWIRE / February 22, 2023 / PEG Companies [“PEG”], a full-service commercial real estate investment firm known for its creative approach to generating value, announced the successful sale of AVIA Sanctuary at Highland Mall, a newly converted apartment community that previously operated as the Habitat Suites extended stay hotel.
The transaction, which resulted in a 2.0X equity multiple for the PEG Extended Stay Conversion Fund, LP [“PEG ESCF”], occurred less than two years after PEG ESCF acquired the property. Due to the hotel’s apartment-like configuration, on-site amenities, and ideal neighborhood location in Austin, PEG ESCF purchased the property at a competitive price during the COVID-19 initial outbreak. Upon acquisition, PEG improved the property through modernization, renovation, and landscaping upgrades. Improvements to the property included cosmetic changes to each of the 96 units, reimagined communal spaces, a well-designed clubhouse, an inviting spacious lobby, and a freshened pool area. Additionally, PEG added a new fitness center and workspace areas, and created an inviting home-like setting for the residents.
PEG ESCF credits the property’s timely conversion and successful exit to PEG’s vertically integrated structure and full-service capabilities. Comprised of five highly synergistic companies that each manage a different phase of the commercial real estate investment process, PEG’s entire team played a role.
“As a vertically integrated organization, we are uniquely positioned to execute on these complex redevelopment projects while both minimizing costs and maximizing returns for our investors,” said Soren Halladay, Chief Investment Officer at PEG.
PEG’s entirely in-house conversion process begins with identifying the right hotel acquisition opportunities through the PEG Capital Partners division of the company. Next, PEG Development begins working closely with