First units of city-owned hotel conversion available to rent

Kick up your feet and stay awhile.

A former hotel near Los Altos Park has been converted into long-term rentals as part of a city program aiming to increase the housing stock in the city. Hotel or motel conversions, city officials say, are faster and cheaper than new buildings.

The SureStay by Best Western hotel at 10330 Hotel NE was bought in April 2023 for $5.9 million.

One year and $6 million later, half of the units are ready to rent. It’s the first hotel-motel conversion as part of the city’s Housing Forward initiative.

The apartments, which includes a mix of studios and one-bedroom units, are open for anyone to apply, regardless of income. Rents are between $700 and $900, and for 15% of the units, subsidies are available.

There are 49 units ready. An additional 41 are still being renovated, along with improvements to the existing pool.

To lease a unit without subsidies and not be rent-burdened — traditionally defined as spending 30% or more of your gross income on housing — a single tenant would have to make between $28,000 and $36,000 per year.

The rent was geared toward people making 80% of area median income, Department of Health, Housing and Homelessness spokesperson Katie Simon said in a news release.

Tenants have to pass a background and credit check.

The city will get a percentage of the rent from its contract with Monarch Properties.

Jerry Burkholder, with Monarch Properties, said there can be challenges managing conversion projects, especially if the project isn’t up to snuff.

“What I’ve seen in the past is as quick a job as could be done, maybe not necessarily making a nice apartment,” Burkholder said. “We had a bit nicer of a property than some of the other ones I’ve seen, so that definitely helped. The city, as the owner, is really the key.”

Burkholder said the property management company has made suggestions, including the addition of a fence and several one-bedroom apartments, as well as studios.

“We’re just ready to lease,” Burkholder said.

City Councilor Renée Grout said she was initially hesitant about a hotel conversion in her district. She said she had seen “poorly done” conversions in the past that became a blight in the neighborhood.

“My constituents had a lot of fear about the city’s efforts to encourage motel conversion,” Grout said. “But through the process of talking to planners and seeing how conversions can benefit a neighborhood when they’re done right, they’ve come around — I’ve come around as well.”

She said conversions could help with vacant buildings around the city and, in her district in particular, provide housing to nearby employees at Kirtland Air Force Base, where housing is limited.

“I want high quality, affordable options for our airmen,” Grout said.

Last week, the city announced it had bought an Uptown hotel to provide temporary housing for young adults without shelter.