Dealmaker: Passco Cos. Acquires Fla. Apartments for $63M
Passco Cos., Irvine, Calif., acquired 300-unit apartment community Legacy on the Bay in Destin, Fla. for $63.45 million.
The firm acquired Legacy on the Bay from Carter-Haston Real Estate Services, Nashville, Tenn. Walker & Dunlop Managing Directors Brian Moulder and Dhaval Patel represented Carter-Haston in this transaction.
Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged Passco’s acquisition financing.
Moulder said Legacy on the Bay represented a high-yield investment opportunity due to its location less than a mile from several Gulf of Mexico beaches and two miles from the Destin Commons lifestyle center with a Whole Foods Market, Bass Pro Shops, a 14-screen AMC movie theater and live entertainment. “This will remain a strong overall investment as it matures,” he said.
The acquisition was Passco’s second multifamily asset acquisition in Destin in seven months; the firm purchased Sea Glass Apartments in December, said Passco Vice President of Acquisitions Colin Gillis. He noted the firm targeted the Crestview-Fort Walton Beach-Destin area for its strong track record and future economic expansion potential. “It continues to post the lowest unemployment rate in the state of Florida,” he said.
Moody’s Analytics placed the area in the top 10 percent nationally for projected job growth over the next five years.
“Additionally, this market continues to have extremely high physical, political and financial barriers to entry,” Gillis said. “There is only one multifamily asset in the pipeline in the entire metro despite significant in-migration and a population growth rate of more than twice the national average.”
Legacy on the Bay is near U.S. Highway 98 and U.S. Highway 331; nearby employers include Fort Walton Beach Medical Center, Northwest Florida State College and BAE Systems.
Passco plans minor renovations to refresh and modernize interiors and the addition of in-unit washer/dryers. Including this purchase, the firm owns 12 Florida apartment properties.
