Residents of the Lofts at 509 Vine apartments in Old City are to be replaced with business travelers and tourists, as the property becomes the latest in Philadelphia to fall under the control of a new breed of tech-enabled start-ups that are converting residential real estate into visitor accommodations. Renters at the 44-unit building have been told by the property’s management that their leases will not be renewed when they expire so their units can be booked by short-term visitors through hospitality brand Stay Alfred Inc. of Spokane Valley, Washington.
“Unfortunately, I regret to inform you that the ownership has decided to change the use of the building to short-term rental units for travelers and corporate suites effective Sept. 1, 2019,” reads a letter sent to one resident by property manager Stonehenge Advisors Inc. A tally by the Philadelphia Inquirer in March found that more than 1,300 units in existing residential buildings and projects under construction had been designated for hotel-length stays.
In many deals involving the hospitality start-ups, the companies agree to buy or lease entire buildings that are being newly built or renovated with short-term stays in mind. In other cases, the companies take over a block of units in a building that otherwise keeps its full-time renters.
Source: Philadelphia Inquirer; 8/22/2019
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