Projects

Tri Cities Development 4

Overview

The Paragon Corporate Villas development consists of 135 corporate-stay lodging units for executives who desire more than a hotel room for extended stay during business travel. The units will be designed and constructed by Parastone, LLC and then leased to Paragon Corporate Housing. The development will provide an advantage to all business travelers in a common setting designed for their specific use, with the added benefit of booking options at the nearby hotel facilities mentioned above. In addition, this project will have complete onsite management, maintenance, supervision and amenities associated with corporate executive travel, creating the ultimate extended stay option in the region.




Background

Founded in 1996 by John Crook, Paragon Corporate Housing is headquartered in Richland, WA. Paragon has grown over the past fifteen years to be the premier regional corporate housing provider in Eastern Washington. Paragon employs 35 employees and manages over 300 fully furnished corporate apartments in Washington and Idaho, including The Guest House on the campus of Pacific Northwest National Laboratory in Richland. In 2011, the company began serving the Salt Lake City market. The company also provides ancillary services through its subsidiaries—Paragon Equity Management, Paragon Home Furnishings and Paragon Storage Solutions. The company anticipates its combined 2011 annual revenues to exceed seven million dollars.


The Corporate Housing Industry

Corporate Housing is a relative newcomer to the lodging industry with the first companies having been formed in the early 1970s. The corporate housing business model increased the rent potential of apartment buildings by achieving rental rate premiums on furniture and accessories. The industry began a trend of explosive growth in the early 1990s resulting in the establishment of providers in countries throughout the world. According to the Highland Group 2010 Corporate Housing Industry Report, the US corporate housing market is estimated at a total of 61,280 units on an average day in 2009.

The Corporate Housing Providers Association has over 800 member companies ranging from very small local operators to companies with an international presence. While business practices vary, at the heart of corporate housing is the practice of leasing apartments, furnishing those apartments fully, providing utilities and housekeeping services along with related guest service functions which enable relocation and temporary assignment personnel to live in a home-like environment that is a unique and preferable alternative to hotels. Offering more square footage and convenience than a typical hotel, Corporate Housing also offers great value at rates that are consistently lower than those of hotels.

Paragon has followed this model and is a sizeable consumer and lessor of leased apartments. With the development of the Corporate Villas at Horn Rapids, Paragon seeks to enter a relationship with TCID where Paragon can enjoy the benefits of ownership participation in a project that is specifically tailored to the needs of corporate housing guests. Paragon Corporate Housing will operate the Villas much like it does its current apartment-based corporate housing suites. As such, Paragon Corporate Housing will follow the normal corporate housing model of providing furniture, house wares, inclusive utilities, housekeeping and guest services to residents.

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