A no-frills Issaquah Motel 6 is set to trade nightly stays for long-term leases, after a Kirkland-based developer snapped up the property and laid out plans to convert all 103 rooms into studio apartments aimed at local workers. The deal closed this month, with the buyer saying the overhaul will inject badly needed, renovated rental stock into the tight Eastside market. Construction is expected to kick off in summer 2026, with units reworked to include kitchens and updated common areas.
Property records show the 27,460-square-foot motel at 1885 15th Place NW sold for $9.7 million to Issaquah 103 LLC, with the transaction recorded in mid-January, according to Seattle Daily Journal of Commerce. The sale moves a 1978-built, 103-room Motel 6 into the buyer’s portfolio and clears the way for a full conversion that is intended to add long-term rentals to the Eastside housing supply.
Sage Investment Group, the Kirkland firm behind Issaquah 103 LLC, focuses on turning underused hotels into apartments and says its conversions typically come with full kitchens, upgraded finishes and shared amenities that help keep rents below comparable new construction, according to Sage Investment Group. The company notes that it usually completes these projects in roughly 6 to 18 months and targets sites near major employment centers in order to deliver “naturally affordable” housing at scale.
Project Plans And Timeline
As reported by Connect CRE, Sage plans to convert all 103 hotel rooms into studio rental apartments, with each unit fully renovated to include kitchen space. The project also calls for a refresh of the amenity areas, including onsite laundry, a club room, an outdoor patio and a leasing office. Construction is slated to begin in summer 2026. Connect CRE notes that the property sits about a half-mile from Costco’s headquarters, a nearby employment hub the outlet reports has roughly 2,100 workers, a detail that factors into the developer’s site selection strategy.
Why It Matters For Issaquah
City officials and residents have repeatedly highlighted the need for more affordable and workforce housing as Eastside job centers continue to grow, and recent local planning talks have focused on adding homes for teachers, first responders and other workers, according to The Issaquah Reporter. The project also plugs into a wider regional push, including corporate and philanthropic efforts on the Eastside, to unlock additional housing near major employers, as outlined by The Seattle Times.
Sage maintains that hotel-to-apartment conversions are a faster and lower-cost way to create “naturally affordable” rentals compared with building from scratch, and the Issaquah project is a textbook example of that approach as the firm broadens its footprint around the Puget Sound region, according to Sage Investment Group. Local officials and housing advocates are likely to watch the conversion closely to see how quickly new long-term units come online and whether they remain within reach for nearby workers.
