AVIA Sanctuary at Highland Mall
Newly converted AVIA Sanctuary at Highland Mall in Austin, TX (former Habitat Suites hotel)
PEG Companies [PEG], a vertically integrated commercial real estate investment firm known for its unique approach to creating value, announced the successful closing of its third fund, PEG Extended Stay Conversion Fund, LP [PEG ESCF] with $120M in LP commitments.
PEG ESCF, a value-add fund focusing solely on the acquisition of aging extended stay hotels for conversion into quality Class B attainable multifamily housing, currently boasts 17 assets in various stages of conversion, lease-up, and stabilization. The properties span 11 states with locations in desirable MSA's including Austin, TX; Dallas, TX; Atlanta, GA; Kissimmee, FL; Philadelphia, PA; Boston, MA;, Seattle, WA and more. Fund management anticipates adding at least two additional properties within the next year.
As one of the earliest groups to deploy a value-add conversion strategy of this kind, PEG has both the experience and organizational structure necessary to successfully execute on the process entirely in-house through its five operating companies: PEG Capital Partners, PEG Development, PEG Construction, PEG Hospitality Group, and PEG Property Group.
"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 Alex Murphy, Portfolio Manager for PEG ESCF. "We recognized the need for more attainable housing in suburban-urban markets across the country and began working on this strategy as early as 2018. The COVID-19 pandemic only intensified demand for this product type."
To further strengthen the strategy, PEG launched the AVIA brand designated specifically for its converted properties. PEG's internal property management team, PEG Property Group, manages the converted properties.
PEG maintains a constant pulse on every market it enters and is continuously examining opportunities to capitalize.
"We are pleased with the performance of our AVIA portfolio and look forward to delivering, if not exceeding the fund's overall projected returns," said Soren Halladay, Fund Manager for PEG Capital Partners. "It's rewarding to see our investment thesis come to fruition."
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About PEG Companies:
Founded in 2003, PEG Companies is a leading commercial real estate investment firm based in Provo, Utah. A vertically integrated organization with five highly synergistic companies that each manage a different aspect of PEG's investments, the group is known for its hands-on involvement through the entire investment process. With $2.0 billion AUM diversified across the multifamily, student housing, mixed-use, retail, industrial, and hospitality asset classes throughout 25-plus states/provinces, the firm sponsors multiple investment products on behalf of its investors. For more information on PEG, visit pegcompanies.com.
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Original Source: PEG Companies Announces the Successful Closing of PEG Extended Stay Conversion Fund, LP
