A California company plans to convert a Chattanooga extended stay hotel into 120 efficiency apartments with the aim of creating what it calls "attainably priced housing."
Plans are for work to start in early 2024 at the Extended Stay America Suites at 6240 Airpark Drive, near state Highway 153 and Lee Highway, said Leslie Moody, a spokesperson for Vivo Living.
The one-bedroom units should be ready by mid-to-late 2024, she said in a phone interview Friday.
The company is seeking a rezoning of the property in January from the Chattanooga-Hamilton County Regional Planning Commission for the hotel to apartment changeover.
(READ MORE: 3 Chattanooga hotels to be converted into apartments)
Moody said Vivo Living has carried out 26 similar conversions nationwide, though the Chattanooga site is the first in Tennessee.
"This one is relatively easy," she said, noting the units already have kitchenettes. "It's an ideal situation. It not going to require any heavy lifting in terms of the conversion."
The company spokesperson said the property is in "good shape," though the proposed work will improve it.
According to the rezoning application, the 120 hotel rooms are in a three-story building that was originally built in 1996.
The site includes about 2.5 acres and technically fits within the Regional Planning Agency's Airport Use District with its fairly close proximity to Lovell Field, the application said.
Moody said she couldn't provide rental rates for the finished apartments, though those likely will come in 10% to 20% less than existing rates.
Units are market rate, but the company spends less money because it's not raising apartments from the ground up, she said.
"It's naturally occurring affordable housing," Moody said.
The company to date hasn't taken any government funding for its conversions, the spokesperson said.
"We quickly produce attainably priced housing," she said.
The planned apartment building will have a lobby/clubhouse and fitness center, and high-speed Wi-Fi, Moody said.
(READ MORE: Company plans 100 apartment units from hotel)
She said Vivo Living is "mission-driven" and was launched amid the pandemic.
"Our goal is to help solve the housing crisis," Moody said.
The company has produced 3,500 apartments so far, she said.
"It's not the only solution, but one really smart approach," Moody said. "We need a lot of different solutions at the table."
Part of the housing problem is people are spending more than 30% of their income on their residences, she said.
"That puts you in a pickle," the spokesperson said. She said the conversion to apartments helps create income stability.
Chattanooga Mayor Tim Kelly earlier unveiled plans for a $100 million affordable housing initiative over five years.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.