Chicago-based hotel investment and management company Arbor Lodging has launched ARLO Residential, which seeks to develop and transform real estate around the country to address the housing affordability crisis, with an initial focus on converting properties ranging from hotels and office buildings into affordable living options.
“Being active real estate developers and operators for over 16 years, we believe ARLO Residential is the perfect segue into a new avenue that will help benefit a multitude of markets and residents of those respective cities,” said CEO Vamsi Bonthala. “We have a unique familiarity in this market, particularly hotel products, and we hope using our current network to find significant deals with lenders and investors will give us the opportunity we need to make a positive impact on our communities throughout the country and worldwide. Further, our initial focus on the revitalization of existing buildings allows us to create viable housing communities in highly livable locations with a reduced environmental impact.”
Hotels and office buildings have taken a major hit due to the repercussions and ramifications of the ongoing pandemic, according to the company. Addressing the underutilization of these properties and working alongside community leaders and neighborhood partners in key multi-family markets, the new brand will adapt and reuse properties to help build up communities with an undersupply of housing due to lack of supply and rental housing becoming more expensive, the company reports.
To officially kick off this new venture, ARLO Residential has entered the Denver market. Earlier this year, in a joint venture with Bridge Investment Group, a real estate private equity fund manager, an ARLO Residential affiliate acquired the former Radisson Hotel Denver-Aurora. Upon completion of renovation work next year, the company will convert the 440-room hotel into an apartment community that will be known as ARLO at Nine Mile Station and consist of 331 apartments with a mix of two-bedroom, one-bedroom and studio units and amenities that include co-working space, pool, fitness center, community center, package delivery room, parking garage and more in planning.