PEABODY — Utah-based real estate developer PEG Companies has begun construction on a Residence Inn by Marriott Hotel that will occupy 2.7 acres of space on the Northshore Mall property.
Simon, the investment trust that owns the mall, successfully closed on financing to build the 142-room hotel on the parking lot between Barnes and Noble and the Rockland Trust Bank, which was most recently being used for the Logan Express shuttle service.
“We’re excited to add the Residence Inn by Marriott at Northshore Mall to further enhance the center’s positioning as the region’s premier experiential place to shop, stay, and play while serving as a destination and a gathering place for the community,” said Patrick Peterman, Senior Vice President of Mixed-Use Development at Simon.
The endeavor is part of PEG’s Residence Inn Replacement Strategy that started in Peabody with the purchase of a Gen 1 Residence Inn at 51 Newbury Street in 2019, “with the goal of transforming it into an upscale Class B workforce housing community under [PEG’s] Avia Apartments brand,” according to PEG Development Manager Anthony Maxfield.
Before closing operations at the older property and converting it into a multifamily housing complex, the company first wants to get the new Residence Inn built using the new Gen 9 prototype up and running.
The Residence Inn brand caters to extended-stay visitors and will bring amenities like a fitness center, an indoor pool, media salons, a conference room, and a hearth room to the Peabody location.
Originally, PEG was exploring the possibility of purchasing the land from Simon, but with the hotel’s walkable distance from the main mall building, a partnership between the two companies was mutually beneficial, and the two have remained closely aligned, according to Maxfield.
“This brand-new Gen 9 Residence Inn will infuse fresh energy into the market,” he said. “To our knowledge, it’s the first new hotel to open in the area since 2002, making this an exciting opportunity to revitalize the hospitality landscape.”
Maxfield also highlighted how the old Residence Inn conversion will provide the city with crucial attainable workforce housing, something he believes is “a win-win for both the Peabody community and our valued investor partners.”
