Submitted by TF Management Group LLC
TF Management Group, LLC, announced that it will promote deeper investment in hotel to multifamily conversions as part of its funds allocation strategy that started in 2020 and continues in 2021.
Demand for hotels has nearly collapsed during the pandemic. Oxford Economics cited an estimated $519 billion in lost revenue for the travel industry as a whole. Meanwhile, the demand for affordable housing is at an all-time high. With vacated hotels standing on valuable property, more municipalities are encouraging redevelopment projects.
Investors are poised to benefit from these fast, relatively inexpensive conversions which are typically much cheaper than new construction projects. The pandemic simply accelerated the trend toward targeting weak or foreclosed hotels for conversion projects.
TF Management Group LLC launched a specialty growth fund, Tempo Growth Fund LLC, to take advantage of this and other “value-add” real estate strategies. This fund has started to raise capital in 2020 and is planning to close by January 2022, investing in multiple hotel/office to multifamily conversion opportunities. Here are a few examples of such projects:
- Two Residence Inn conversions to housing in Winston-Salem, N.C. and South Bend, Ind.
- Two Ramada Inn conversion in Mesa, Ariz. and New Braunfels, Texas
- Best Western hotel conversion in Longmont, Colo.
- Conversion of an office building to multifamily housing in downtown St. Louis, across from the Cardinals ballpark