KLNB, working alongside HREC Investment Advisors, has arranged the $35 million sale of Arlington Court Suites, an extended-stay hotel in Arlington, Virginia, that is set to be converted back into apartments. The 187-unit hotel, located at 1200 N Courthouse Road, is planned to be repositioned as a 180-unit multifamily rental property following the transaction.
The seller, Arlington Hotel Holdings, Inc., engaged teams from both firms to handle the disposition. KLNB’s Multifamily Capital Markets group, led by Principal Rawles Wilcox with Senior Vice President Justin Shay and Vice President Dutch Seitz, partnered with HREC Investment Advisors, represented by Senior Vice President Mark Morris and Senior Principal & COO Scott Stephens, to broker the deal and represent the seller’s interests in the sale process.
The 219,000-square-foot building was acquired by GoodHomes Communities. While the asset currently operates as an extended-stay hotel, the buyer intends to return the property to its original residential use. The planned 180-unit multifamily configuration will slightly reduce the current key count but is designed to reintroduce the asset as a rental apartment community in the local housing market.
Arlington Court Suites has a long history in the area, having been constructed in 1963 as an apartment complex. The building was later converted into an extended-stay hotel during the 1980s, marking a shift in its positioning within the local real estate market. Its existing interior layout already provides a range of floor plans, including studios, one-bedroom, two-bedroom, and three-bedroom configurations, which supports its latest repositioning back to multifamily use.
Ownership has obtained approval from Arlington County to move forward with the change from hotel to apartments, providing an entitlement framework for the planned multifamily conversion. With zoning approvals in place and a sale completed to a new owner focused on residential use, the property is positioned for a transition that will shift it from hospitality operations to long-term rental housing.
The transaction underscores investor interest in reprogramming existing buildings with flexible layouts and established locations. As GoodHomes Communities moves ahead with the multifamily conversion, the former hotel is expected to re-emerge as a residential asset serving renters in Arlington once the repositioning work is carried out under the county-approved plan.
