Bryan Kang's Dos Lagos Asset Revives Houston's Hilton with a $40M Multifamily Conversion

Bryan Kang's Dos Lagos Asset is set to bring a touch of innovation and rejuvenation to a dormant Hilton Hotel in Houston. The developer has recently submitted documents outlining their visionary redevelopment plans for the now-closed Hilton Houston Galleria located at 6780 Southwest Freeway. While specifics regarding the number of units for the planned multifamily complex were not disclosed, the conversion of this 13-story, 200,000-square-foot building is estimated to cost around $40 million.

Embarking on this ambitious project, Dos Lagos Asset has enlisted the expertise of Dallas-based design firm Huitt Zollars to bring their imaginative vision to life. As construction is expected to commence in April, the revitalized complex is projected to be completed by September 2025.

From Politics to Real Estate

Embarking on a transformative path, Kang, former commissioner of the Los Angeles Department of Transportation from 2012 to 2014, has dived headfirst into the realm of real estate. His latest venture took shape in 2019 when he made a notable acquisition - a prime office building in Orange County valued at an impressive $13.4 million, as reported by Traded LA. Prior to venturing into politics and real estate, Kang left an indelible mark as the CEO of Rhapsody Clothing, a renowned wholesale merchandiser. With product offerings that reached all corners of North America, this dynamic leader also sealed retail deals with the prominent South Korean brand, Home Plus. Unfortunately, in 2019, Rhapsody Clothing closed its doors, according to substantiated business records from California. Despite our best attempts, we were unable to establish contact with Kang to gain firsthand insights into this profound shift in his career trajectory.

Meanwhile, the Hilton Houston Galleria, a structure steeped in history, continues to captivate the imagination. Originally erected in 1978 and subsequently remodeled in 2016, this iconic hotel found itself caught in dire straits due to the unprecedented impact of the pandemic. As a result, the property underwent foreclosure in 2022, rendering it vacant since then. Holding real estate-owned status, as confirmed by the Harris County Appraisal District, the Hilton Houston Galleria boasts an assessed value of $7.2 million for the year 2023.

The Rise of Hotel-to-Residential Conversions Unveils New Opportunities in Houston's Real Estate Market

Houston's commercial real estate scene is experiencing a notable shift as hotel-to-resi conversions become an increasingly lucrative venture. The aftermath of the pandemic has dealt a blow to the hospitality market in the Bayou City, as occupancy rates plummet and loan delinquencies rattle the industry. In fact, Trepp's recent report ranked Houston's hotel market as the nation's worst in the previous year[email protected].

While office-to-resi conversions often steal the limelight, it is intriguing to discover that Houston's conversion market is predominantly led by hotel-to-resi conversions. As revealed by RentCafe, a remarkable 58 percent of conversion projects in Houston fall under this category[email protected].

A collaboration between the Houston Housing Authority and Columbia Residential brings forth a promising endeavor to revitalize a dilapidated Holiday Inn located at 2100 Memorial Drive. This eyesore near Buffalo Bayou will find new life as a 197-unit affordable senior living complex, catering to the needs of the senior community in Houston@.

Another Rental Community Coming to Town

Prepare for a remarkable addition to Houston's urban scene as Shir Capital unveils its latest venture - Teak Living. Embracing the defunct Wyndham Hotel at 14703 Park Row, this visionary hotel-to-resi developer is set to redefine the concept of modern living. With an expected opening by the end of this quarter, Teak Living promises to offer a captivating rental community experience like no other.