April 19, 2023

Bisnow

To meet the staggering demand for rental housing, the U.S. needs to build 4.3 million multifamily units by 2035. Add to that the fact that the National Low Income Housing Coalition estimates that the country currently needs 6.8 million more affordable units for families in need, and it would seem as though the time to start building more multifamily homes was yesterday.

Vacant and underperforming hotels have long been touted as a possible solution to this problem. Today, as many companies have transitioned to work-from-home models, some cities are exploring the idea of converting underused office buildings into multifamily units.

However, making this switch is easier said than done.

Bisnow sat down with Stroock Real Estate Partners Peter David Ballance and Lorie Soares Lazarus to learn more about the trend of converting assets into multifamily housing, why more hotels may be making this switch and why offices can be tricky choices for these projects.

They discuss their recent experiences in conversion deals and in a question-and-answer format, they cover:

• Will we start to see more hotels converted into multifamily housing?
• Are conversions of office buildings and hotels to multifamily housing financeable?
• What are some of the unique underwriting issues for lenders?
• Where are these conversions the most feasible?
• Where do you see this trend heading in the future?

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• Corporate Real Estate
• Hospitality and Leisure
• Lending / Distressed Real Estate
• Real Estate

• Stroock at a Glance

• Los Angeles