Adaptive Reuse

DSG has received numerous national and regional honors for its adaptive reuse projects. The DSG team possesses a thorough understanding of the multifaceted processes involved in creating a successful adaptive reuse project. Our expertise includes: evaluation of market opportunity (highest and best use); comprehensive understanding of key due diligence required to mitigate construction risks;  “best practices” of design to balance existing and new construction; cost effective construction means and methods that meet requirements of governmental and historic regulations; financing options and processes; tax credit options and processes; and governmental affairs (local, state, and national). We enjoy an excellent relationship and reputation with National Park’s Service and one of our projects was featured in a seminal report written by the GAO. Because of our track record and proven abilities, we have won nationwide RFP searches.  Where others see a functionally obsolete building that is underperforming or even an abandoned or blighted building, we see an opportunity to create a value.

  • Candler Hotel Atlanta (under construction) As developer, DSG is converting the iconic Candler Building from an office building into a 265-guestroom Curio Collection by Hilton luxury hotel.
  • Le Meridien Houston adaptive reuse of the blighted, 21 story Melrose Building, converting into a 255 room Le Meridien Hotel.
  • The Chisca Apartments acquired a blighted, abandoned hotel in the heart of downtown Memphis, converted into 161 upscale apartments.
  • Le Meridien Tampa DSG won a nationwide, competitive RFP to convert the Old Federal Courthouse in dowtown Tampa into a 130 room Starwood Le Meridien hotel.
  • Le Meridien Philadelphia originally built as a YMCA in 1916 and converted into an office building in the 1970s. Building was vacant and lender owned due to its functional obsolescence as an office building. DSG acquired the building in 2007 and converted it into an award winning 4 star Le Meridien Hotel. 


Ground Up

DSG has completed over 50 ground up construction projects. When assessing sites that might be suitable for ground up development opportunities, DSG focuses on finding locations where barriers to entry are high such as urban areas, sites near corporate or university campuses or near tightly controlled planned communities. With creativity and persistence, DSG has developed outstanding projects in multiple markets with high-barriers to entry. Successful execution of  a few examples includes: 
    • Embassy Suites Hotel in Nashville, acquired two small parcels; combined them and rezoned them so that a 211 room Embassy Suites could be built adjacent to Vanderbilt University campus.
    • Hyatt House in Nashville (under development), created a site by rezoning a functionally obsolete office building in a premier location adjacent to the campus of Vanderbilt University in the highly sought after midtown Nashville market.
    • Four Points by Sheraton Cumberland House Hotel in Knoxville, assembled 7 small parcels and rezoned to create a hotel site adjacent to the campus of the University of Tennessee and near downtown Knoxville.
    • Hampton Inn and Homewood Suites in Memphis;  created a site for two hotels across the street from Fed Ex world headquarters. The properties share a traffic signal with the entrance of FedEx world headquarters. 


Major Redevelopment

Some of the best investment opportunities are created from assets that are undervalued or under performing. When assessing redevelopment or repositioning opportunities, DSG analyzes the current environment and underlying structure of the relevant industry to craft a strategic business plan for a specific property. Options range from upgrading, rebranding and repositioning in its market to demolition and redevelopment under certain conditions.

DSG is often called on to develop and execute Product Improvement Plans (PIPs) for hospitality properties and, at times, to apply those same skills to multifamily, office and health-care facilities. Repositioning success stories include:
  • One Commerce Square office tower in Memphis, where DSG led the acquisition, renovation and revitalization from low-occupancy, lender-held to vibrant, LEED-certified landmark with 80+ percent occupancy
  • Marriott Courtyard hotel in Killeen, where DSG acquired the lender-held asset on favorable terms and is applying its expertise to reposition the hotel all-in at 60% of the cost of new construction


Risk-Alleviating Turn-Key Third-Party Services 

DSG provides turn-key development services to institutional investors, such as REITs, real estate funds, pension funds and public companies. In appropriately structured transitions, we use our own capital sources and develop the asset with an agreement to deliver at a guaranteed price and on a date certain. We eliminate construction risk and any potential drag on earnings. This benefits the institutional investor tremendously.

Opportunities are sourced across the real estate industry through DSG relationships, which are based on confidence and performance. Recent turn-key third-party successes include:
  • Le Meridien Hotel in Philadelphia, redeveloped within an historic 100-year-old structure a quarter mile of the $631 million convention center expansion and sold upon completion by previous agreement to HEI Hotels & Resorts of Norwalk, Conn.

It’s Complicated

Where others see obstacles and pitfalls, we see opportunities. Our principals have demonstrated abilities and persistence in working through complicated transactions such as those involving new market tax credits, historic tax credits and bonds, as well as conventional forms of financing. Our financial, project management and construction management skills have enabled us to finance, develop and deliver financially successful projects on every project that we undertake.

Our authoritative knowledge, our proprietary methods and our determination to deliver uncommon results differentiate DSG from others.