Marc Galt of Sensei Development in late December picked up at auction the 26,000-square-foot former Hotel Weyanoke for $913,000.
The 32-unit complex, which is across the street from Longwood University, is about 85 percent occupied and has a restaurant space leased to 202 Bar and Grill, Galt said.
“It’s got positive cash flow, absolutely,” Galt said. “It has five vacant units, but I think that’s more due to the owner focusing on selling the building rather than a lack of demand.”
The hotel, built in 1925, is being used as student housing.
Galt said that he was considering a tax credit conversion project but that he is inclined to keep it as is while taking care of some differed maintenance. Those costs will run between $100,000 and $150,000, he said.
Galt said he bid against Richmond contractors and developers S&S Construction.
“It turns out they had done a lot of due diligence on the building, more than I had,” he said. “So I talked to them after the auction, and we’re going to partner on the deal.”
Galt said S&S, led by Ross Fickenscher and Garrett Shifflett, would be doing the work on the building.
Galt is the developer of the $29 million Shockoe Valley Heights apartment complex at Main and 20th streets. Galt and Monument Companies teamed up on that project and are working on another 57-unit apartment complex at 200 N. 20th St.