Dealmaker: Passco Cos. Buys N.C. Apartments for $57M

Passco Cos., Irvine, Calif. acquired 312-unit Class A multifamily community Asheville Exchange in Asheville, N.C., for $56.6 million.

Cushman & Wakefield Multifamily Advisory Group Vice Chair Marc Robinson, Executive Managing Director Jordan McCarley and Senior Associate Brooks Colquitt represented Passco and seller Hathaway Development, Atlanta, in the transaction.

KeyBank Real Estate Capital Senior Vice President Chris Black and Vice President Caleb Marten arranged Passco’s acquisition financing.

Passco Southeast Vice President of Acquisitions Colin Gillis said the privately held firm liked the city’s strong and sustained population growth across age demographics and high quality of life. The transaction represented Passco’s first multifamily acquisition in Asheville and its first North Carolina purchase in nearly five years.

“[Asheville’s] recent population surge has been driven primarily by the in-migration of both retirees and millennials, with more than 30,000 people moving to the area within the past five years,” Gillis said.

Asheville’s reputation as a progressive city similar to Austin, Texas, Portland, Ore. and Boulder, Colo. should continue to bring young professionals to the area and drive job growth, which has seen nearly a 20 percent increase in the last six years, Gillis noted.

“The Asheville market has been on our radar for some time due to its unique attributes, high occupancy rates and above-average population growth trends with a shortage of luxury rental options,” Gillis said. “The shortage of luxury multifamily housing in the market has allowed for properties like Asheville Exchange to experience near-record setting absorption rates and positions the property for continued growth.”

Located off Interstate 26 and Brevard Road, Asheville Exchange includes one-, two- and three-bedroom units with energy-efficient appliances, granite kitchen countertops and wine racks.

Asheville Exchange delivered at 105 Exchange Circle in Asheville last December.