PEG Extended Stay Conversion Fund closes with $120m investor commitments
PEG Companies, a vertically integrated commercial real estate investment firm, has closed its third fund, PEG Extended Stay Conversion Fund (PEG ESCF), with $120 million of investor commitments.
PEG ESCF is a value-add fund focusing solely on the acquisition of aging extended-stay hotels for conversion into quality class B attainable multifamily housing. The fund currently holds 17 assets in various stages of conversion, lease-up and stabilization, spanning 11 states with locations in desirable MSAs. The fund is expected to add at least two more properties within the next year.
“As a vertically integrated organization, we are uniquely positioned to execute on these complex redevelopment projects while both minimizing costs and maximizing returns for our investors,” said Alex Murphy, portfolio manager for PEG ESCF. “We recognized the need for more attainable housing in suburban-urban markets across the country and began working on this strategy as early as 2018. T