Elysian Real Estate Takes on Multifamily-to-Hotel Conversion

Elysian Real Estate Group has acquired Austin’s first mass timber residential building for an ambitious $6 million apartment-to-hotel conversion.

The Austin-based commercial real estate firm plans to convert the Juno East Austin apartment building into a hotel brand called Boheme, the Austin Business Journal reported. The seller is San Francisco-based developer Juno.

The 24-unit property, at 400 Comal Street, has studio and one-bedroom apartments ranging from 460 to 690 square feet. However, Elysian’s founder, Walker Molinare, believes the building’s compact size and proximity to East Sixth Street offer more potential and viability as a hotel.

The hotel will feature 20 rooms — 14 studios and six suites — along with a ground-floor bar and a rooftop lounge, pending city approval. The firm has enlisted Baldridge Architects to oversee the redesign, while Nova Hospitality will handle food and beverage services.

The hotel could open as soon as next summer, contingent on the expiration of existing apartment leases.

Molinare points to tremendous demand for boutique hotels in recent years, particularly on the city’s east side, where very few projects are underway. Elysian intends to operate the hotel under its own management while rolling out features like customizable guest experiences and automated check-in systems.

Elysian wants to turn Boheme into a national chain of 12 hotels.

Juno opened the mass-timber apartment building earlier this year. The startup has a slightly different take on modular building. The firm uses custom software to break down its apartment developments into 33 components — pre-cut pieces that can be transported to the development site and assembled like giant Legos.

The Austin project was its first, outside of a prototype built in a warehouse. It was designed to be efficient and sustainable and cut out amenities like a swimming pool and in-unit laundry.

— Andrew Terrell