KLNB and HREC Secure $35 Million Multifamily Conversion Sale of DC-Area Hotel

TYSONS, VA – KLNB, the Mid-Atlantic’s largest privately held commercial real estate brokerage firm, in collaboration with HREC Investment Advisors, has successfully brokered the $35 million sale of Arlington Court Suites, a 187-unit hotel located at 1200 N Courthouse Rd. in Arlington, Virginia. The property is slated for a conversion into a 180-unit multifamily rental asset. 

The KLNB Multifamily Capital Markets team of Principal Rawles Wilcox, Senior Vice President Justin Shay, and Vice President Dutch Seitz and HREC Investment Advisors team of Senior Vice President Mark Morris and Senior Principal & COO Scott Stephens represented the seller, Arlington Hotel Holdings, Inc. The transaction for the 219,000-square-foot property closed on June 18, 2026, and was acquired by GoodHomes Communities.

Constructed in 1963, the building was originally an apartment complex before transitioning into an extended-stay hotel during the 1980s. Its existing layout features an optimal mix of studios, one-bedroom, two-bedroom, and three-bedroom floorplans. Ownership has already secured approval from Arlington County to transition the building into apartments.

To maximize value for the seller, KLNB and HREC executed a coordinated marketing strategy designed to explore every potential avenue for the asset. While the HREC team focused on traditional hospitality and existing hotel operators, KLNB targeted regional apartment developers capable of executing a large-scale conversion. This joint approach promoted the property to extended-stay hotel owners, timeshare companies, traditional apartment owners, 55+ communities, and assisted living operators. 

"By combining KLNB’s deep-rooted knowledge of the Arlington apartment market with HREC's hospitality expertise, we provided a comprehensive approach that put our client’s strategic goals first," said KLNB’s Justin Shay. "Our team utilized our relationships with active regional developers to highlight the undeniable conversion potential of the asset.” 

“This deal was a terrific example of two teams aligning to drive maximum market exposure and secure the absolute best terms for the seller,” said HREC’s Mark Morris. “We had strong interest from both traditional hotel operators and apartment developers, ultimately generating more than 20 competitive offers." This represents HREC’s second successful transaction with GoodHomes.