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.