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Blue Spruce Apartments

Multi-Family Conversion Opportunity

A 52-unit motel-to-multifamily conversion repositioning an underperforming Hudson Valley asset into a stabilized residential community.

  • Location
    Valatie, NY
  • Acquisition Date
    2026
  • Purchase Price
    $3.59 Million
  • Total Project Cost
    $6.7 Million
  • Projected Value
    $8.2 Million
  • Projected Equity Created
    $1.5 Million

Projected Returns
2.8x Equity Multiple
100% Capital Return
48 mo. Return of Capital
Opportunity

01

A Rare 10-Acre Campus in a Housing-Starved Market

Blue Spruce sits on 9.1 acres along Route 9 in Kinderhook — a Columbia County submarket where rental inventory outside of Hudson is nearly nonexistent.

The property came with a mixed-use unit matrix of 28 hotel rooms and 24 residential apartments, a 34,325 sq ft footprint, and rents running well below what the market will bear — exactly the kind of gap Green Springs is built to close.

  • Received IDA-approved tax PILOTs, mortgage recording tax exemptions, and sales tax waivers
  • Nearly no competing rental inventory outside of Hudson
  • 52 units with significant conversion and rent growth potential
  • Existing residential base enabling phased repositioning
  • Scenic 10-acre setting with walkable services within 1 mile

    Renderings

    The Strategy

    02

    Motel-to-Multifamily Conversion Across Four Pillars

    Green Springs structured a full conversion strategy — eliminating hospitality operations entirely and repositioning all 52 units as a cohesive residential community priced for a market with almost no competing supply.

    Motel
    Conversion

    Convert 28 hotel rooms into residential apartments, standardizing the unit matrix and eliminating the operational complexity and income volatility of short-term hospitality.

    Full Unit
    Renovation

    A $2.15M renovation scope across all units — new kitchens, bathrooms, flooring, lighting, and hardware — repositioning the property to command stable long-term rents in a market with virtually no comparable supply.

    Operational
    Reset

    Common utilities and services recaptured through a Ratio Utility Billing System (RUBS), reducing ownership expense drag and improving NOI without impacting achievable rents.

    Refinance &
    Capital Return

    Following stabilization, a refinance is targeted in Year 4 to return 100% of investor capital, with a 7–10 year hold for ongoing cash flow, appreciation, and long-term wealth creation.

    Execution

    03

    $2.15M in Renovations Across Three Scopes

    A $6.7M total project budget encompasses acquisition, a full renovation program, and soft costs — with the construction scope focused on three areas of improvement executed over a 24-month construction and stabilization period.

    01

    Exterior & Site

    Repainting, new roofs, railings, and walkways. Overall exterior refresh and site improvements across the full 9.1-acre campus.

    02

    Interior Upgrades

    Motel-to-apartment unit conversions throughout the hospitality wing. Modern kitchen and bath updates, new flooring, lighting, and hardware across all 52 units.

    03

    Community Amenities

    Centralized laundry and improved common areas. Picnic areas, fire pits, and shared grills. Fenced dog park for pet-friendly living.

    Q1 2026
    Property Acquisition
    Closing completed. Construction mobilization begins across the 9.1-acre campus.
    Q2 2026 — Q4 2027
    Leasing & Stabilization
    Renovated units brought to market at $1,315/mo average as construction progresses.
    Q2 2028+
    Optimize Operations
    Long-term hold. Ongoing investor distributions. Strategic refinances every 3–5 years.
    01
    02
    03
    04
    05
    Q2 2026 — Q3 2027
    Construction Period
    Full renovation and motel-to-apartment conversion underway across all 52 units.
    Q1 2028
    Refinance Execution
    Refinance executed against stabilized value. 100% of investor capital returned.
    01
    Q1 2026
    Property Acquisition
    Closing completed. Construction mobilization begins across the 9.1-acre campus.
    02
    Q2 2026 — Q3 2027
    Construction Period
    Full renovation and motel-to-apartment conversion underway across all 52 units.
    03
    Q2 2026 — Q4 2027
    Leasing & Stabilization
    Renovated units brought to market at $1,315/mo average as construction progresses.
    04
    Q1 2028
    Refinance Execution
    Refinance executed against stabilized value. 100% of investor capital returned.
    05
    Q2 2028+
    Optimize Operations
    Long-term hold. Ongoing investor distributions. Strategic refinances every 3–5 years.
    The Results

    04

    $1.5M in Equity Created at Stabilization

    At stabilization, the property is projected to be valued at $8.2 million — representing $1.5 million in equity creation against a total project cost of $6.7 million. Rents are conservatively underwritten at $1,315/month against a market average of $1,500–$2,000+, in a submarket with almost no competing supply.

    • 100% of investor capital returned via Year 4 refinance
    • Projected 28% average annual return and 2.75x equity multiple
    • Infinite cash-on-cash position following refinance
    • 7–10 year hold with strategic refinances planned every 3–5 years

    Blue Spruce is Green Springs’ first motel-to-multifamily conversion — and a direct response to one of the most undersupplied rental markets in the region.

    Investor Impact

    05

    Capital Preserved. Upside Retained.

    Through disciplined execution and a structured refinance strategy, investors achieved full capital return while retaining equity exposure to the asset’s long-term performance.

    Preserved capital. Ongoing upside participation. Structured value creation.
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