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Tag: Hotel Conversion

  • Everett’s Econo Lodge Is Becoming 124 Studio Apartments: The Complete Guide to Sage Investment’s Silver Lake Conversion

    Everett’s Econo Lodge Is Becoming 124 Studio Apartments: The Complete Guide to Sage Investment’s Silver Lake Conversion

    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

  • Everett’s Econo Lodge Is Becoming 124 Studio Apartments — What Sage Investment’s $16.5M Conversion Means for Silver Lake

    Everett’s Econo Lodge Is Becoming 124 Studio Apartments — What Sage Investment’s $16.5M Conversion Means for Silver Lake

    What is the Econo Lodge Everett conversion? Sage Investment Group purchased the former Econo Lodge near Silver Lake at 9602 19th Street SE in Everett, WA for $9.5 million in 2025 and is investing $7 million to convert it from a 124-room motel into 124 studio apartments. Phase 1 leasing is expected to begin in August 2026, targeting “Missing Middle” renters — moderate-income earners who need housing near jobs and transit but don’t qualify for subsidized programs.

    Driving south on Highway 99 through Silver Lake, it blends into the visual noise: a two-story motel sign, a parking lot, the familiar beige of a budget chain that hasn’t quite kept up with the neighborhood. But the Econo Lodge at 9602 19th Street SE is in the middle of a $16.5 million transformation — and by August 2026, the sign will be gone and 124 people will be calling it home.

    Sage Investment Group, a Seattle-area real estate company that has been quietly working the Puget Sound motel-to-apartment conversion market, bought the property for $9.5 million and is putting another $7 million into the build-out. It’s one of the most straightforward housing additions Everett has seen in recent years: the building already exists, the units are already laid out, the plumbing is already in the walls. What Sage is doing is pulling out the hotel fixtures and replacing them with kitchens, modern bathrooms, and the infrastructure people need to actually live somewhere — not just sleep there on the way somewhere else.

    Why Hotel-to-Apartment Conversions Are an Everett Housing Strategy Now

    Everett doesn’t have a housing affordability problem that can be solved with one project. It has a supply problem that’s been building for years — and conventional apartment development, with its permitting timelines, construction costs, and financing gaps, isn’t closing that gap fast enough. The city’s median home price sits above $577,000 as of early 2026, apartment inventory is tightening (vacancy rates at Waterfront Place’s Sawyer and Carling buildings are at 95% occupancy), and new single-family construction in Snohomish County closed down 34.3% year over year in early 2026.

    Hotel-to-apartment conversions sidestep the most expensive parts of that development equation. The bones of the building are already there. The city doesn’t have to wait years for a ground-up permit. The developer isn’t fighting soil conditions, utility connections, or a blank-page design process. They’re retrofitting something that already works as a structure and making it work as a home instead.

    Sage has been running this playbook across the region. In January 2026, the company picked up another closed motel in the Seattle metro for a similar conversion. The Econo Lodge deal is their Everett execution of a strategy they know. The $9.5M purchase price and $7M in renovations — $16.5M total — delivers 124 units at roughly $133,000 per door, a fraction of what ground-up multifamily development typically costs in the region.

    What the 9602 19th Street Location Means for Residents

    The Silver Lake location isn’t downtown Everett, but it’s not a dead zone either. The property sits near the intersection of 19th Street SE and Highway 99, which puts it within range of Everett’s major employment corridors. Boeing’s Paine Field campus is about five miles north. The Silver Lake area has its own grocery infrastructure, access to Community Transit routes, and proximity to the Snohomish River trail system.

    For the renter Sage is targeting — the “Missing Middle” occupant — location like this matters. These aren’t people choosing between the waterfront and a suburb. They’re workers who need a real address, a kitchen to cook in, and a reasonable commute. The Highway 99 corridor has transit access that connects to broader Snohomish County routes. As the Everett Transit consolidation into Community Transit moves forward (a process that could be formally voted on later in 2026), frequency and coverage on routes serving this corridor is expected to improve.

    Construction was set to begin in November 2025, with Phase 1 leasing opening in August 2026. Specific unit pricing wasn’t announced at the time of the project’s public filing, with Sage indicating rates would be available closer to the opening date. Units will include full bathrooms and kitchens — a significant upgrade from the motel-room baseline — and the company has positioned the project as market-rate housing for people earning moderate incomes who aren’t eligible for subsidized programs.

    The “Missing Middle” Problem Sage Is Trying to Solve

    The “Missing Middle” isn’t a buzzword — it’s a real gap in Everett’s housing market that has been widening for years. It describes people who earn too much to qualify for income-restricted affordable housing but too little to comfortably absorb Everett’s going market rents. In early 2026, average apartment rents across Everett sat around $1,849 per month according to market data — down about 2% year over year, but still requiring an annual income of roughly $74,000 to be considered affordable at the standard 30% of income threshold.

    Snohomish County’s office vacancy came in at 10.7% in Q1 2026, meaning there’s commercial demand generating employment — but the workers filling those jobs need somewhere to live. The $23 million in housing and behavioral health funding Snohomish County approved in April 2026 helps on the deeply subsidized end of the spectrum. What the Econo Lodge conversion helps with is the layer above that: people who are employed, stable, and just need a reasonably priced unit near their job.

    Studio apartments specifically serve a population that includes recent graduates, single workers early in their careers, seniors downsizing from larger spaces, and people relocating to take jobs in Everett’s growing industrial and aerospace sectors. With Boeing’s North Line ramping toward Rate 47 production this summer, there’s a real workforce influx expected — and those workers need places to land.

    How This Fits Into Everett’s Broader Housing Production Picture

    The Econo Lodge conversion doesn’t exist in isolation. It’s part of a wider shift in how Everett — and Snohomish County broadly — is adding housing supply. The city’s Critical Areas Ordinance update (passed April 2026) adjusted development rules near wetlands and stream buffers, affecting what’s buildable on undeveloped parcels. The county’s $23M housing award is funding three Everett projects, primarily deeply affordable units with behavioral health components. Eclipse Mill Park’s two-phase riverfront development in Lowell is adding open space that will raise property values — and pressure — in the Riverside corridor.

    The conversion model isn’t a magic solution, but it addresses a real problem with real speed. The motel footprint at 9602 19th Street SE — 39,658 square feet according to public records — produces 124 homes without breaking ground on new earth, without a years-long entitlement process, and without the financing complexity that stops ground-up multifamily deals from penciling in the current rate environment.

    Everett’s Cascade View neighborhood nearby has been quietly stable — owner-occupied, modest, not subject to the volatility of downtown or the waterfront. The addition of 124 rental units on the Highway 99 corridor adds density in a place that can absorb it without displacing an existing residential community.

    What Comes Next for the Project

    With construction underway since late 2025 and Phase 1 leasing targeting August 2026, the Econo Lodge conversion is on a short runway. Sage has not announced specific rent levels, but the “Missing Middle” positioning and market-rate framing suggests units will be priced at or below the prevailing Everett studio average — likely in the $1,200–$1,600 range, though that figure is our inference from regional comparables and not a confirmed Sage quote.

    The project won’t solve Everett’s housing shortage. But it adds 124 units to the supply side of a market that needs every unit it can get, delivers them faster than ground-up construction, and does it in a segment of the market — moderate-income workers, studios — that traditional apartment developers have historically underserved.

    For anyone interested in the project’s progress, the property is publicly visible at 9602 19th Street SE, and Sage’s timeline puts leasing launch at August 2026. We’ll update this when unit pricing and availability are announced.

    Frequently Asked Questions

    Where is the former Econo Lodge being converted into apartments?

    The property is located at 9602 19th Street SE in Everett, WA, near Silver Lake and the Highway 99 corridor in South Everett.

    How many apartments will the converted Econo Lodge have?

    124 studio apartment units, matching the former motel’s room count. Each unit will have a full kitchen and bathroom.

    Who is developing the Everett Econo Lodge apartment conversion?

    Sage Investment Group, a Seattle-area real estate company known for motel-to-apartment conversions across the Puget Sound region. They purchased the property for $9.5 million and are investing $7 million in renovations.

    When will the Everett Econo Lodge apartments open?

    Phase 1 leasing is expected to begin in August 2026. Construction began in late 2025.

    How much will rent be at the converted Everett Econo Lodge?

    Sage has not announced specific rent levels as of April 2026, stating pricing will be available closer to the opening date. The project is positioned as market-rate housing targeting “Missing Middle” renters — moderate-income workers who don’t qualify for subsidized housing programs.

    What is “Missing Middle” housing in Everett?

    “Missing Middle” refers to housing for people who earn too much to qualify for income-restricted affordable units but too little to comfortably afford market-rate rents. In Everett, with average rents around $1,849/month, that typically means workers earning $50,000–$80,000 annually.