About this Property in Abilene, TX- Motel Conversion

Hospitality to Workforce Housing Conversion Bridge Loan

Overview

Enact Partners provided bridge financing, including construction funding, for the conversion of a vacant hotel property into workforce housing in Abilene, Texas. The objective was to reposition an underutilized asset into much-needed multifamily housing while executing a full rehabilitation and upgrade plan.

The project received approval for conversion, allowing the sponsor to move forward with construction and improvements. As the renovation progressed and market demand supported a higher-quality finished product, the business plan was adjusted to elevate interior finishes and overall positioning.

Loan Structure

• Initial Loan Amount: $2,635,000
• Upsized Loan Amount: $3,750,000
• Loan Increase: $1,115,000
• Increase Supported By: Updated scope and supporting valuation
• Loan Type: Bridge Loan with Construction Funding
• Term: 24-month bridge loan

After substantial completion, the loan was increased to support upgraded finishes and enhancements aligned with demonstrated market demand. The structure provided flexibility as the sponsor executed on the evolving business plan.

Abilene Market Dynamics

Secondary markets with consistent employment bases often show strong demand for quality workforce housing. In Abilene, short-term rental demand tied to workforce and transitional housing needs has remained steady, with limited vacancy and consistent absorption.

The conversion addressed this demand by delivering refreshed, functional housing designed to meet the needs of local renters.

Sponsorship

The sponsor has executed similar hospitality-to-multifamily conversions in multiple comparable markets, with a focus on workforce housing in areas where short-term rentals (not vacation rentals) see strong demand and limited vacancy. Their experience in repositioning underutilized assets and managing renovation timelines supported execution throughout the project.

Exit Strategy and Expected Outcome

The business plan includes stabilization followed by refinance or sale. The loan upsize allowed the sponsor to deliver a higher-quality finished product, aligning final execution with market demand and supporting improved long-term value.