Dealmaker: Passco Cos. Pays $69M for Georgia Apartments

Passco Cos., Irvine, Calif., acquired Merritt at Sugarloaf, a 424-unit multifamily asset in Duluth, Ga., for $68.85 million.

Duluth and surrounding Gwinnett County are “standouts” among Atlanta submarkets for both regional employment growth and population gains, said Passco Vice President of Acquisitions Colin Gillis. “Gwinnett County has experienced rapid and broad-based job creation throughout the long-running economic growth cycle, with particular emphasis in technology, biosciences and financial services fields,” he said. 

Garden-style community Merritt at Sugarloaf includes one-, two- and three-bedroom floorplans, two swimming pools and a lake. The property, built in 1999 near the Interstate 85/State Route 316 interchange, is currently 95 percent occupied. Gillis said Merritt also offers value-add potential; 117 of its 424 units could receive a built-in $70 rent premium with light to moderate upgrades.

CBRE Vice Chairman Paul Berry and Senior Vice President Shea Campbell represented the seller, a Roseview Group affiliate. KeyBank Real Estate Capital Senior Vice President Chris Black and Vice President Caleb Marten arranged the acquisition financing.

Gillis noted Gwinnett County regulates new multifamily starts more than Atlanta’s urban core and areas near the I-285 Perimeter. “Existing product like Merritt at Sugarloaf is in high demand, making the community a solid long-term investment,” he said.