Dealmaker: Passco Cos. Acquires D.C.-Area Multifamily Asset for $113M

Passco Cos., Irvine, Calif., acquired The Parker, a 360-unit multifamily community in Alexandria, Va., for $112.75 million.

Eastdil Secured Managing Director David Nachison represented the seller, a joint partnership between AEW Capital Management and MRP Realty. He also represented Passco Cos. in the transaction.

KeyBank Real Estate Capital Senior Vice President and Multifamily Mortgage Banker Chris Black and Vice President Caleb Marten arranged Passco’s acquisition financing through Fannie Mae, Washington, D.C.

“Fairfax County and the city of Alexandria both provide ideal multifamily market fundamentals,” said Passco Senior Vice President of Acquisitions Gary Goodman. “The region features a combination of strong job growth, low vacancy rate, high-wage earning population and a minimal supply of competing multifamily assets.”

Forbes magazine recently ranked Fairfax County the third-wealthiest county in the nation.

Goodman noted Alexandria’s 3.5 percent unemployment rate and several new offices under construction for expanding companies, “which will increase demand for multifamily product,” he said.

The Parker is near the Huntington Metro public transit station. The nearby U.S. Patent & Trademark Office and the National Science Foundation together employ more than 15,000 people.

Goodman said The Parker–which delivered in 2016–was 92 percent occupied at closing.

The acquisition represents Passco’s second Washington D.C.-area acquisition. Last year it acquired The Shelby, a 240-unit Class A community. Goodman said the Washington D.C. area aligns with Passco’s strategy to acquire quality assets in strong growth markets. “We continue to find significant value here and plan to acquire more properties throughout the region in the coming months,” he said.