A developer will soon convert a Peachtree Corners hotel into an apartment complex, following more than an hour of back-and-forth dialogue between city officials and upset residents.
City Council granted a special-use permit that will allow Blaze Partners and Argosy Real Estate Partners to do the work at the Homewood Suites by Hilton hotel at the corner of Technology and Peachtree parkways.
This is the first permit given under an ordinance enacted in late May that allows developers to convert declining hotels into small apartments. The city passed the ordinance in case hotels lose their national brand due to lost revenue from the pandemic and decline in quality or shut down.
Blaze and Argosy plan to transform 92 existing hotel rooms into small apartments with repainted walls and new floors, cabinets and appliances. Rent will range from $1,100-$1,600 per month for one- and two-bedroom units, sized between 455-807 square feet, said Jason Abel, vice president of Argosy.
Credit: City of Peachtree Corners
Credit: City of Peachtree Corners
The apartment complex, known as The Spoke, will target young entrepreneurs and entry-level employees who work at Technology Park, Abel said.
Sharen Hagans, a resident who spoke during a public hearing, said that she worried the apartments would lead to an increase in crime. She said she had doubts that young professionals would flock to the apartments.
“This price point invites a lot of undesirable people into the city,” Hagans said.
William Moneit, another resident who spoke during the hearing, said he moved to Peachtree Corners in 1993 for its family-friendly environment. He said young people don’t want to live outside the Perimeter, given the absence of late-night bars and clubs.
Several city officials voiced concerns over the property being sold off and declining in quality after the conversion takes place, leading to the vote passing 5-2 with a hefty set of upgrades to be made to the property.
“I’m struggling with this,” said Mayor Pro Tem Weare Gratwick, who voted against the conversion. “It’s choosing between the lesser of two evils.”
Councilmember Alex Wright, who also voted against it, worried about what would happen if the complex didn’t attract its target audience. Councilmember Jeanne Aulbach said she’d prefer nice apartments in the city over a rundown hotel.
The hotel currently uses about 50% of its rooms for extended-stay guests, said Jeremiah Cofer, general manager of the Homewood Suites location. Rooms go for $129 per night with a special rate of $99 per night after 60 days, he said.
The proposed rental rates would be cheaper per month than what long-term guests pay at the hotel, Cofer said. He said some of the guests showed an interest in applying for a unit after the conversion takes place.
Residents in the updated units would have access to a central laundromat. Anyone who wishes to live in one of the units would have to pass background and credit checks, and the apartment complex would participate in the county’s crime-free multifamily program.
Representatives from Blaze Partners and Argosy declined to share further comment after the meeting. The two companies have teamed up to convert extended-stay hotels into apartments in the past, including a project earlier this year in Charlotte, North Carolina.
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