Passco, Blue Roc Premier Strike Florida Multifamily Deals

SARASOTA, FL—Just before the Memorial Day holiday, several significant multifamily purchases were announced in Florida. Irvine, CA-based Passco Companies has acquired a Sarasota rental community for $77.5 million, while Blue Roc Premier of Tampa has purchased six properties throughout the Sunshine State.

Passco purchased the 360-unit Springs at Bee Ridge at 5900 Wilkinson Road, which it will rebrand as Longitude 82o. The acquisition brings Passco’s multifamily portfolio in the state of Florida to nine properties totaling more than 2,700 units.

“We were attracted to Sarasota due to its incredibly strong economic growth and growing demand for quality multifamily housing in the region,” says Colin Gillis, VP of acquisitions, Southeast at Passco. “The pent-up demand for luxury product in this submarket was demonstrated by the rapid lease-up at the 360-unit apartment community, which was fully-leased within one year.”

Gillis notes that the property’s high occupancy rate and the fact that there are virtually no comparable properties in the area, with most nearby communities having been constructed in the early 1990s, positions the property for strong future rent growth.

“Passco recognized that the demand for high-quality multifamily housing will continue to grow as Sarasota shows strong demographics, including annual average household incomes over $100,000 onsite at the property,” Gillis says. “The Bradenton-Sarasota-North Port MSA has also added over 25,000 jobs over the past two years and boasts one of the lowest unemployment rates in the entire state of Florida.”

Gillis adds that the deal marks the second asset Passco has acquired from Continental Properties—the other being the Longitude 81o in Estero, in the Fort Myers market area.

Community amenities include a resort-style salt water swimming pool with an expansive sun deck and poolside kitchen with grills and a fire pit, 24-hour state-of-the art fitness center, a resident clubhouse and lounge, a conference room, coffee bar and catering kitchen, two leash-free dog parks, pet grooming station, car wash area and controlled-access gated entry.

The property features a diverse unit mix, which includes studios and one-, two- and three-bedroom units.

Jamie May of JBM Institutional Multifamily Advisors represented the seller and the buyer in this transaction. Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco.

In another Florida multifamily transaction, Meridian Capital Group reports it arranged $66 million in acquisition financing for Blue Roc Premier’s purchase of six multifamily properties in Florida.

The portfolio consists of six properties located in Atlantic Beach, Jacksonville, Orange Park, Ormond Beach, DeLand, and Brandon, FL, totaling 1,010 units with an average occupancy rate of 97%. While a portion of the units at each community had been renovated prior to the acquisition, the sponsor plans to invest in excess of $10 million into the portfolio for renovations and upgrades.

“Even though these six assets were spread across the state of Florida in many different markets, each of the assets are located in a submarket that our client currently owns and manages other apartment communities in. That deep knowledge of direct comps and market specifics helped the lender quickly gain comfort and confidence in the business plan and upside expectations,” Grossman says.

Although all closings occurred on one day due to the purchase agreement requiring a simultaneous closing for the portfolio, each property was financed separately to allow maximum flexibility for the sponsor. The seven-year Freddie Mac loans, provided by Capital One Multifamily Finance, all feature floating rates and two years of interest-only payments. This transaction was negotiated by Meridian senior managing director Seth Grossman and VP Sarah Kuebler, who are both based in the company’s Solana Beach, CA office.