You can soon extend your stay at a southeast Denver hotel permanently.
A South Florida investor and local developer are teaming up to convert an extended-stay hotel at 3699 S. Monaco St. in Denver into apartments. The hotel closed in tandem with the real estate last week.
Aryn Spahr and Adam Berger purchased the two three-story, 30,000-square-foot buildings for $13.5 million, or $219 a foot. The property has a pool and 137 parking spots.
“Our site plan is already approved,” Spahr said. “We have some work we have to do out on the street for right-of-way. It’s mainly cosmetic renovations (after) then.”
The seller, an affiliate of New York-based Three Wall Capital, purchased the property for $10.5 million in March 2019. It most recently had been operating as a Suburban Studios, a Choice Hotels chain. Before, it was a TownePlace Suites by Marriott.
BusinessDen first reported on the possible conversion last year.
The plan is to preserve the hotel’s 112 units mix — 86 studios, four one-bedrooms and 22 two-bedrooms — and spruce them up with new floors, paints, blinds, bathroom fixtures, appliances and lighting. All units have kitchens with full-size appliances, including refrigerators, oven/ranges, sinks and dishwashers.
It’ll cost $37,000 to do the construction and demolition work needed, permit records indicate. The total project cost is much higher, but Spahr declined to share those figures.
“We’re going to completely renovate the ground-floor lobby … fitness facility, club room, conference room and lounge area,” he said, adding that he expects the apartments to be open by spring.
Spahr, a University of Colorado Boulder graduate, has “family all over the Front Range” but mainly makes investments elsewhere via his firm SL Capital. These hotel-to-apartment conversions are a “significant” portion of his business, he said, having done several in the Southeast. It’s his first deal in the Mile High City.
He’s teaming up with local developer Adam Berger on the project, who has his own shop, Adam Berger Development. Berger did not respond to a request for comment, but his website said the firm specializes in modular development and shows a portfolio of work all over town, from Sun Valley to Elyria-Swansea.
The former hotel at 3699 S. Monaco is adjacent to a shuttered Regal movie theater. Earlier this year, a local developer proposed demolishing the theater and building apartments.
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