Quick Answer: Sage Investment Group is converting the former Econo Lodge at 9602 19th Street SE in Everett into 124 studio apartments, with Phase 1 leasing opening August 2026. The $16.5 million project — $9.5M acquisition plus $7M buildout — is one of the most straightforward housing additions Silver Lake has seen in recent memory: no new construction permits, no public subsidy, no wait list. Just 124 units of “Missing Middle” market-rate housing arriving in a neighborhood that needs them.
The Silver Lake Conversion: What Sage Is Building
The Econo Lodge at 9602 19th Street SE has been operating as a budget motel along the Highway 99 corridor through Silver Lake in south Everett. Sage Investment Group, a Seattle-area real estate firm that has been active in the Puget Sound motel-to-apartment conversion market, purchased the property in 2025 for $9.5 million and is investing an additional $7 million in the buildout — converting each of the 124 motel rooms into a fully equipped studio apartment with a complete bathroom and kitchen.
The project is part of Sage’s established playbook of acquiring underperforming hospitality properties and converting them to permanent residential use. The model works because the bones of a motel — individual lockable units with separate plumbing — translate directly to studio apartment units with minimal structural modification. The cost per unit is dramatically lower than ground-up construction, and the timeline is measured in months rather than years.
“Missing Middle” Housing: Who This Is For
Sage is explicitly targeting what housing economists call the “Missing Middle” — moderate-income earners who need housing near jobs and transit but earn too much to qualify for subsidized or income-restricted housing, and not enough to afford Everett’s new luxury apartment stock. In a market where Snohomish County’s median home price held at $738,000 in March 2026 even as inventory rose 51.8% year-over-year, the Missing Middle gap is acute.
The 124 studios at 19th Street SE will lease at market rates — specific pricing has not been announced ahead of the August 2026 Phase 1 opening, but motel conversion projects of this type in the Puget Sound market typically come in well below newly constructed apartment stock on a per-square-foot basis. For single-income workers, recent graduates, and individuals transitioning from shared housing or unstable situations, this type of unit is often the only viable path to a private, independently leased home near employment centers.
Why Silver Lake — and What It Signals About South Everett
Silver Lake is not Everett’s headline neighborhood. It sits south of downtown along the Highway 99 corridor, defined more by its proximity to employment — Paine Field to the north, the Everett Mall area to the south — than by any particular amenity cluster. But that employment proximity is exactly why a 124-unit housing addition matters here.
South Everett’s workforce housing gap has been documented repeatedly. The 5,200-worker aerospace labor shortage in Snohomish County is partly a housing accessibility problem: workers who could fill jobs at Paine Field and the North Line can’t find affordable housing close enough to make the commute work. The Silver Lake location — near Community Transit’s Casino Road campus, adjacent to Highway 99, with access to multiple bus routes — positions these units for workforce housing demand from the aerospace, healthcare, and logistics employers concentrated in south Everett.
Sage’s acquisition also signals that the motel-to-apartment conversion model, which has been active in Seattle and Tacoma for several years, is now reaching south Everett’s Highway 99 corridor. There are multiple underutilized hospitality properties along this stretch. If the Sage conversion performs well at lease-up, expect similar projects to follow.
The August 2026 Timeline
Phase 1 leasing opens August 2026. Sage has not announced a specific marketing timeline or pre-leasing availability, but the company’s standard practice is to list units through major apartment platforms (Apartments.com, Zillow, etc.) ahead of a Phase 1 opening. Prospective tenants interested in the Silver Lake location should watch Sage’s website and major listing platforms beginning in June or July 2026.
The conversion involves upgrading each of the 124 rooms with a full kitchen — the primary modification required to meet residential habitability standards — along with bathroom upgrades, code compliance work, and common-area improvements. Sage’s $7 million buildout budget works out to roughly $56,500 per unit, consistent with motel conversion projects of similar scale in the region.
What It Means for Everett’s Housing Supply
Snohomish County’s active home listings surged 51.8% year-over-year in March 2026 — but that inventory increase is concentrated in for-sale product at price points above $600,000. The rental supply side of the Missing Middle has not seen a comparable expansion. The 124 Sage units represent a meaningful, immediate addition to Everett’s rental inventory without requiring a rezoning, a public subsidy, or a multi-year permitting process.
Everett’s Imagine Everett comprehensive plan envisions densification along transit corridors — and the Highway 99 / Silver Lake corridor is explicitly identified as a growth area. Motel conversions are a form of adaptive reuse that delivers density without displacement: the land was already developed, the units are net-new housing on a footprint that was previously providing zero long-term residential units, and the conversion brings underutilized commercial property into productive residential use.
Frequently Asked Questions
What is the Sage Investment Econo Lodge conversion in Everett?
Sage Investment Group purchased the former Econo Lodge at 9602 19th Street SE in Silver Lake, Everett for $9.5 million and is investing $7 million to convert all 124 motel rooms into studio apartments. Phase 1 leasing opens August 2026. Total project cost is $16.5 million.
When do the Sage Silver Lake apartments open?
Phase 1 leasing is expected to begin in August 2026. Specific unit availability and pricing will be announced closer to the opening. Watch Sage’s website and major listing platforms starting June–July 2026.
How much will the Silver Lake studio apartments cost?
Sage has not announced specific rental pricing. The project targets “Missing Middle” market-rate renters — moderate-income workers who need housing near jobs but don’t qualify for subsidized housing. Motel conversion projects typically lease below newly constructed apartment stock in the same market.
Where exactly is the Econo Lodge conversion in Everett?
9602 19th Street SE, Everett, WA 98204. The property is along the Highway 99 corridor in the Silver Lake area of south Everett, near Community Transit bus routes and approximately 15–20 minutes from Paine Field by car or transit.
What is “Missing Middle” housing?
Missing Middle housing serves moderate-income earners who earn too much to qualify for subsidized housing but not enough to afford new luxury apartment stock. In Snohomish County, where the March 2026 median home price was $738,000, the Missing Middle gap is significant for single-income workers, recent graduates, and workforce housing candidates in aerospace, healthcare, and logistics sectors.
Is this subsidized affordable housing?
No. The Sage project is market-rate housing with no public subsidy or income restrictions. It targets moderate-income renters at market rates, but below the price point of newly constructed luxury apartments. Tenants do not need to meet income qualification requirements.
Related Exploring Everett coverage: Everett Econo Lodge Becoming 124 Studio Apartments | Snohomish County Housing Inventory Up 51.8% | Everett Housing Market Three Submarkets Guide
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