Dealmaker: Passco Cos. Acquires Multifamily, Retail Assets for $67M
Passco Cos., Irvine, Calif., acquired Pearce at Pavilion, a 250-unit Class A multifamily community in Riverview, Fla., for $49.7 million.
A joint partnership between Adler Group and Mattoni Group, both headquartered in Miami, sold the property, located 15 minutes southeast of downtown Tampa.
The acquisition represents Passco’s third multifamily purchase in Florida in the last month and brings the firm’s holdings to more than 2,000 units in the region, said Passco Cos. Vice President of Acquisitions for the Southeast Colin Gillis.
“Nowhere are we seeing such progressive economic growth than we are here,” Gillis said. “The region has one of the most dynamic economic profiles in the U.S.”
Gillis noted more than 55,000 jobs have been added to the area in the past two years and the metro’s population is anticipated to grow nearly 8 percent by year-end 2018. “This rapid job creation and migration of workers will result in continued demand for multifamily housing throughout the area,” he said. “The Tampa Bay MSA currently has a multifamily vacancy rate below 5 percent.”
JBM Institutional Multifamily Advisors, Tampa, represented Adler Group and Mattoni Group. KeyBank Real Estate Capital Vice President and Multifamily Mortgage Banker Chris Black arranged acquisition financing through Fannie Mae.
Passco also acquired Temescal Village, a 104,000-square-foot neighborhood shopping center in Corona, Calif., for $16.95 million.
A retail brokerage team led by Cushman & Wakefield Managing Directors Dixie Walker and Charley Simpson represented the private investor seller in the transaction.
“Temescal Village is a prime retail asset with strong value-add potential,” said Passco Cos. Vice President of Retail Acquisitions Todd Siegel. He noted the Corona retail market had a vacancy rate of 4.4 percent at year-end 2016. “This is one of the lowest vacancy rates we’ve seen throughout the region,” he said.
Siegel said Passco plans to modernize the 1983-vintage property with redesigned landscaping and an updated façade as well as new social gathering, outdoor dining and seating areas throughout the center. “Shoppers today are demanding environments where they can gather and socialize with friends and family, he said. “We plan to integrate these social components into the center by incorporating more outdoor seating and gathering spaces for shoppers.”
The retail center is currently 93.5 percent leased to a 19 tenants including CVS Pharmacy, Citibank, H&R Block and Riverside County.
