A hotel in Courthouse has been sold for conversion into multifamily units, the latest in a series of adaptive reuse projects around the county.
Arlington Court Suites, a Clarion Collection hotel, will be closing at 1200 N. Courthouse Road following a $35 million sale to GoodHomes Communities, the real estate brokerage firm KLNB announced yesterday (Monday). The conversion project, which will turn 187 hotel rooms into 180 multifamily units, was approved by the Arlington County Board back in October 2020.
The hotel, which was originally constructed as an apartment building in 1963, was still open as of yesterday. A KLNB spokesperson was unable to provide details on when it will close or when construction will begin.
KLNB and HREC Investment Advisors brokered the sale.
“This deal was a terrific example of two teams aligning to drive maximum market exposure and secure the absolute best terms for the seller,” HREC Senior Vice President Mark Morris said in a press release. “We had strong interest from both traditional hotel operators and apartment developers, ultimately generating more than 20 competitive offers.”
A subject of scrutiny during the project’s approval process was the ratio of parking spots to dwellings.
Transportation Commission members unanimously objected to the first iteration of the plan, which knocked the original 203 spots to 171. The revised plan included 150 spaces, many of them located on a surface parking lot, with the rest in a garage under the building.
Several residential conversion projects have received county approval in recent years, although most of them involve office buildings rather than hotels. In May, JBG Smith received approval to convert a pair of 11-story buildings in Crystal City into a combined 315 residential units.
“By combining KLNB’s deep rooted knowledge of the Arlington apartment market with HREC’s hospitality expertise, we provided a comprehensive approach that put our client’s strategic goals first,” said KLNB Senior Vice President Justin Shay. “Our team utilized our relationships with active regional developers to highlight the undeniable conversion potential of the asset.”
