Ahwatukee's shuttered Grace Inn will become luxury apartments

The former Grace Inn — once a popular hotel at Elliot Road and 51st Street in Ahwatukee — will be converted into a high-end apartment complex.

Why it matters: Phoenix is in the middle of an extreme housing shortage , and there are few multifamily options in the Ahwatukee area, per the developer Caliber.

The big picture: The 160-room former Grace Inn, which became a Four Points Sheraton a decade ago, will be repurposed into 104 luxury apartment units.

• Caliber also plans to build 88 townhouse-style rentals on a lot adjacent to the former hotel.

The intrigue: The developer originally purchased the hotel with the intention of keeping it as a hotel, but when the pandemic curbed business travel, Caliber decided to pivot, the company's acquisitions and real estate services director, Chris DuCharme, told Axios.

• "There's obviously many offices being converted to multifamily. Hotel to multifamily is certainly an easier conversion, which is why this kind of piqued our interest," he said.

Zoom in: The tower apartments will include 23 studios, 80 one-bedroom units and one two-bedroom unit. The first floor will feature amenities designed for "work-from-home residents," according to the company.

• The townhouse units will average about 1,200 square feet and some will have direct garage access.

What we're watching: The once-attached convention center has already been demolished and renovation will begin in force this fall with the hope of completing the conversion late next year, DuCharme said.

• Caliber hopes to begin construction on the townhouse portion of the project next year, he said.