Company transforming hotels and motels into affordable seniors housing
LONDON: Companies are swarming into the hotel/motel transformation business as tourism slows and the need for multigenerational affordable housing continues to rise.
Hotels and motels are now helping create more affordable housing options across the Grand Strand area.
A boutique investment firm specialized in income-producing residential and commercial real estate is leading the project efforts.
NDH Capital is transforming several hotel and motel properties into apartment complexes.
Company president Roy Assaf said that it’s part of their long-term plan to provide affordable housing options for families in the Myrtle Beach area. The company has years of experience acquiring hotels and turning them into apartments, including properties along Chester Street in Myrtle Beach and in Conway.
Assaf says NHD Capital just purchased three additional hotel/motel Grand Strand properties for a total of 254 units, one building in Carolina Forest and another two along Ocean Boulevard, to expand the housing options.
The properties will be renamed as part of the Pacer Communities branding.
Assaf said what makes these soon-to-be apartment complexes affordable is the overall cost of living for the tenants, ranging from $800-$1200 per month.
All utilities will be included and the space will come furnished.
“We really clean up the areas, the reputation of the hotels,” said Assaf. “We stabilize them with long-term tenants that we screen well. We’re renovating properties. So we’re offering the community and the city [these housing options] that go along with their plans to revitalize the area.”
“We have done a lot of this type of work across the country,” added NHD Capital managing member Shai Schlusselberg. “One of the biggest issues in the hotel business is you have to accept everybody no conditions, you don’t know who’s staying there. When you’re getting into a multi-family, you want to create a safe and clean environment. Make sure you screen the tenants, make sure everyone qualifies and abide by the rules so we can provide a healthy and safe environment.”
The Housing Authority of Myrtle Beach says Horry County itself has a shortage of affordable housing options, which trickles down to those prospective residents in the housing authority’s jurisdiction who are trying to find a home.
“It’s a desperate situation,” said Carol McCall, operations director for the Housing Authority of Myrtle Beach. “Think about somebody who’s been waiting for years to get a voucher. They’ve been working in Myrtle Beach, they’re living outside the jurisdiction because it’s the only way they could afford a place to live, they’ve been traveling long distances to get to work. They’re really hoping for a place closer to work. They finally get the voucher and there are no units available.”
McCall says NHD Capital is taking steps in the right direction towards addressing this issue.
“Most of the properties Roy is purchasing are old hotels, which means they’re usually studios or maybe one-bedrooms. It’s got to be safe and inhabitable. Not only must it have to be something affordable. It’s also something that must pass inspection and that’s something he’s been paying attention to.”
NHD Capital says right now they have close to 350 units total in the area, and they plan to acquire 1,000 more over the next two years.
The housing authority said they’ll be opening the pre-application lottery waiting list for housing choice vouchers in January.
