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Hotel in North Dallas to be converted into 100-plus apartments

North Dallas project is part of nationwide conversion program.

A Utah developer plans to convert a North Dallas hotel into rental apartments.

The Sonesta ES Suites hotel on Alpha Road contains 114 one- and two-bedroom units in a single building with an interior courtyard.

The almost 100,000-square-foot hotel was built in 1997. Developer PEG Cos. plans to convert the hotel into a 114-unit rental community called Avia Apartments on Alpha.

The company describes the property as “part of a large portfolio of extended-stay hotels that Peg Cos. has acquired for the conversion into quality Class B multifamily housing communities.”'

Peg Cos. also has one of its Avia conversion properties in Irving.

In May, Peg Cos. purchased nine extended stay hotels, including the property in North Dallas.

“The properties lend themselves to efficient and cost-effective conversions. Because by nature, most extended stay hotels already possess the critical features for comfortable apartment living — private entrances, full kitchens, convenient amenity packages — these types of acquisitions are ideal for our hotel-to-apartment conversion process,” Peg vice president Alex Murphy said in a statement.

The developer’s Peg Extended Stay Conversion Fund L.P has bought 15 extended stay hotels so far, including the nine hotels this year. The fund is raising $130 million for the conversion program.

The developer plans to begin construction in February on the North Dallas hotel and plans to complete the work by next summer, according to planning documents filed with the state. Architect Ware Malcomb is designing the project.

Peg Cos. has $2 billion in multifamily student housing, mixed-use, retail and hotel properties in North America.

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