Passco Set to Spend $1B on Apartments This Year
In the first half of 2021, the firm has spent $445 million on six properties totaling 1,781 units.
Passco Cos. is on track to accomplish its goal of buying $1 billion in apartment assets this year. In the first half of 2021, the firm has spent $445.7 million on six properties totaling 1,781 units.
The company has targeted properties with strong cash flow, the cornerstone characteristic of its investment strategy. Under this strategy, Passco acquired Mill at New Holland, a 284-unit community in Gainesville, Georgia; The PARQ at Chesterfield, a 345-unit community in Chesterfield, Missouri; The Fitzroy at Chenal, a 294-unit community in Little Rock, Arkansas; Altis Promenade, a 338-unit community in Tampa, Florida; The Collins, a 272-unit community in Covington, Louisiana. It’s most recent purchase is The Harrison at Braselton in Buford, a 248-unit property in Georgia.
In addition to significant acquisition activity, Passco also sold 102 properties in the first half of the year. The assets have generated record sales prices and returns.
Acquiring $1 billion in multifamily assets in a year will be an aggressive expansion for the firm. In 2019, Passco announced that had achieved a total of $3.5 billion in total multifamily transaction volume and developed a multifamily portfolio of $2.6 billion. The milestone, according to the firm, positioned Passco as a leading investor in the US apartment sector. Now, it is on track to do nearly a third of that volume in a single year.
Apartment investors are returning to the fold this year. This month alone, Prime Residential purchased Playa Pacifica, a 285-unit property, and The Gallery, a 169-unit property, in Hermosa Beach, California for $275 million; Shamah Properties acquired Copperwood Apartments in Princeton, New Jersey, for $70.4 million; and Avanti Residential entered the Florida market with the acquisition of a 341-unit apartment building located at 500 Ocean, in Boynton Beach for $105 million, or $308,000 per unit.