AUSTIN, TX – PEG Companies [PEG], a leading commercial real estate investment firm known for its unique approach to making value, has bought its 14th extended stay hotel for conversion into quality Class B apartments. The Habitat Suites Austin joins PEG Companies’ growing portfolio of hotel-converted-to-apartments across the country.
Ideally located at 500 E Highland Mall Boulevard, the property is currently undergoing renovations and remains on track for an early summer delivery. PEG is in the process of adding a fitness center, workspace areas, cosmetic improvements, and other updates necessary to convert the property into a market-leading multifamily community while leasing out one building of furnished units on their current state.
The acquisition of Habitat Suites is the latest of many extended-stay acquisitions for PEG. The firm is currently raising a $150 million fund, the PEG Extended Stay Conversion Fund, L.P., dedicated specifically to their strategy of converting discounted extended-stay hotels into quality Class B workforce housing in strong markets across the United States. This Austin location has become the third acquisition within the new fund, following in the footsteps of an earlier fund which has 11 extended stay hotel acquisitions.
As the hospitality industry experienced the heavy burden of COVID-19 impacts last year, real estate groups across the country recognized the value in PEG’s extended-stay conversion strategy and started to follow suit. When questioned about how this increased focus from other groups may be impacting PEG’s strategy, Cameron Gunter, Chief Executive Officer of PEG clarified:
“We are seeing more groups out there bidding for the older extended-stay hotels. What we are finding is that being new to the game, these other groups are not thinking through the implications of certain buys. We have been at this since 2018, and we are very selective in which hotels we buy. We are confident that by remaining disciplined in our approach, we will build a strong portfolio of Class B multifamily housing units across the country and continue to stand out as the leader in this space.”
When vetting potential acquisitions, PEG has several criteria on its list including urban and suburban-urban sub-market locations with strong rental occupancies, ongoing projected growth metrics in the area, and recent sales of comparable Class B multifamily units. The population within a three-mile radius of Habitat Suites and the adjacent Highland Mall is projected to grow 10.33 percent within the next five years. In addition, the greater Austin community continues to make progress on redeveloping the mall into 1.3M square feet of Austin Community College campus space; 800,000 square feet of office space; 150,000 square feet of retail space; new outdoor trails; several new parks; and 1,200 Class A apartments.
PEG investment executives say that, once converted into a multifamily community, the new use will help satisfy the growing demand for attainable housing in the Austin area.
“Like so many communities across the country, Austin is in dire need of reasonably priced housing for the working class,” clarified Soren Halladay, Chief Investment Officer at PEG. “We are excited to give this property a bit of tender like and care in order to transform it better than before and, in the process, offer people an inviting, stylish place to call ‘home.'”

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MARIETTA, GA – TerraCap Management LLC, a privately held investment firm based out of Naples, Florida, announced the sale of The Knolls and The Crossings. The two multifamily properties consist of a total of 692 units and are both located in the northwestern Atlanta suburb of Marietta.
The Knolls and The Crossings were bought in September 2017 as part of a four-property, 1,100-unit multifamily portfolio buy. The two other properties in the portfolio, the Arbors and The Crossings at Holcomb Bridge, saw dispositions in December 2019 and September 2020 respectively.
Steve Hagenbuckle, Founder and Managing Partner of TerraCap, said, “Our Atlantic southeast asset management team led by Matt Stewart and Robert Witt executed our business plans for these assets with precision, and the outcomes highlight their capabilities and enthusiasm for delivering results to our investors. Our property management team First Communities and our sales team led by David Gutting of NGKF played critical roles for us from acquisition to disposition and added value to the outcomes.”
After acquiring The Knolls and The Crossings in 2017, TerraCap implemented a strategy of capital investment into the properties coupled with the general organic rent growth that the surrounding area was achieving. TerraCap executed significant capital upgrades to the interiors, exteriors, and common grounds for both properties. “We saw strong potential with these assets when we bought them,” said Steve Excellent, Partner and National Director of Acquisitions for TerraCap. “Our team efficiently improved the properties and generated unit premiums,” Excellent added. “We feel the location and quality of the properties themselves will provide continued upside for the buyer. We wish them the best.”
David Gutting of NGKF represented TerraCap on the sale. First Communities Management represented TerraCap on property management.

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CYPRESS, TX – The Bascom Group has continued their acquisition spree in Texas acquiring a 350-unit luxury multifamily property located in the highly desirable master-plotted community of Towne Lake in the city of Cypress, Texas. Cantera marks Bascom’s 36th multifamily property closed in Texas.
Brian Eisendrath, Annie Rice, and Samantha Jay with CBRE Capital Markets sourced the Freddie Mac senior loan debt financing. David Mitchell with Newmark was the broker. James D’Argenio and Chang Liu sourced and managed the acquisition for Bascom.
The property, constructed in 2006, contains a unit mix comprised of 15% one-bedroom, 76% two-bedroom units and 9% three-bedroom units averaging 1,015 square feet. The land size is approximately 13 acres and includes a total of 605 parking spaces. Community amenities include a leasing office, two-tale clubhouse, networking center, fitness center, and two swimming pools.
Cantera is in the Towne Lake master-plotted community developed by Caldwell Companies. Towne Lake is the 4th largest recreational lakeview community in the greater Houston Area, featuring a 300-acre lake with over 14 miles of shoreline and a 6-mile continuous boat ride. Towne Lake offers a variety of community recreational attractions, retail and dining options. The community is also the home of Lone Star College. In 2020, the Houston Business Journal named Towne Lake a Landmark in Houston and the Houston Chronicle named Towne Lake the “Best Community” in Houston.
James D’Argenio, Senior Principal for Bascom, adds, “We underwrote over six billion in multifamily deals last year in Texas, so we’re really pleased to get this closed. This acquisition aligns with our investment thesis in Texas of acquiring newer-vintage assets with achievable renovation premiums located in submarkets with minimal new-supply exposure.” Tony Ferrell, Senior Vice President of Operations, comments “We are excited to buy this well-run asset in excellent condition and in a submarket with desirable entertainment attractions, premier public schools, and brilliant access to the greater Houston area.”

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