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Blue Ocean pitches $5.25M Richardson hotel conversion

Developer focuses on converting extended-stay hotels into apartments

Blue Ocean's Evan Gallant; 2301 North Central Expressway (Blue Ocean, Google Maps, Getty)
Blue Ocean's Evan Gallant; 2301 North Central Expressway (Blue Ocean, Google Maps, Getty)

A Maryland developer plans to bring more housing to Richardson by transforming an extended-stay hotel into an apartment complex.

Blue Ocean Investments plans to spend $5.25 million and has requested approval to redevelop the 131-room Hyatt House at 2301 North Central Expressway into a rental property, the Dallas Morning News reported. The 25-year-old property consists of four two-story buildings on the western side of Central Expressway at Fall Creek Drive.

The firm oversees almost 10,000 multifamily units and has been in the residential real estate business for almost two decades, Evan Gallant with Blue Ocean said. Blue Ocean has focused on converting extended-stay hotels into multifamily properties over the past two years with projects in North Carolina, Virginia, Texas, Maryland and Pennsylvania, Gallant said.

Conversion of the property, just a few miles north of the Dallas city limits, would take about a year to complete. The hotel currently has studios and one-bedroom units, and it’s not clear if Blue Ocean plans to alter the rooms as part of the conversion. Once complete, the property will operate under the developer’s Trellis Apartments brand.

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New exterior paint and landscaping, plus updates to the swimming pool and installation of a perimeter fence are in the renovation plans, Gallant said in a letter to Richardson planning officials.

“Elevating these conversions to a higher finish level produces the best possible outcome for these properties, ties in well to the surrounding established neighborhoods and provides the optimal path and useful life for the property as well,” he said in the letter.

Blue Ocean is also working on a similar conversion project in Far North Dallas.

In addition, Utah-based developer Peg Companies plans to convert the 114-room Sonesta ES Suites hotel in Far North Dallas into a 114-unit rental community.

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— Victoria Pruitt

Tags
ConversionResidential DevelopmentRichardson