206 Flats, formerly The Carlyle Hotel, represents the successful repositioning of a historically significant 1890s building previously operated under nonprofit ownership. At acquisition, the property was generating negative NOI due to inefficient nonprofit style operations and an oversized staffing structure. The investment strategy focused on restoring operational efficiency, transitioning the asset to market rate housing, and activating underutilized commercial space to unlock embedded value. The property included a full ground floor commercial kitchen, which was retained through a leaseback to the nonprofit, preserving mission use while generating stable income. Two vacant retail spaces and unused office areas were repositioned and re tenanted through targeted improvements and space planning, creating new revenue streams. Following rebranding to 206 Flats, approximately 500,000 was invested in common areas and units to enhance the resident experience while maintaining historic character. The asset is now stabilized as market rate housing with strong demand and diversified income. Current NOI of approximately 350,000 reflects a significant improvement in performance and asset value, positioning 206 Flats as a differentiated, high performing component of the portfolio.