Friday, July 29, 2016

Passco Cos. Acquires 236-Unit Class AA Multifamily Asset in Louisville, KY MSA for $50.4 Million

The Veranda Apartments at Norton Commons, Prospect, KY

Colin Gillis
LOUISVILLE, KY – Passco Companies, LLC has acquired The Veranda, a 236-unit multifamily community in the highly sought-after Norton Commons master-planned community in Prospect, Kentucky, a growing submarket of the Louisville MSA, for $50.4 million.

 “The Veranda at Norton Commons is the only ultra-luxury rental option within one of the best-executed master planned communities in the Southeast,” explains Colin Gillis, Vice President, Acquisitions - Southeast at Passco Companies. 

“Norton Commons is the embodiment of a high-quality lifestyle destination, with unrivaled walkability to employment, boutique retail, dining, entertainment and recreation.” 

The Louisville MSA is experiencing rapid economic growth, resulting in strong demand for multifamily product throughout the region, according to Gillis.

“The demographic profile at The Veranda is one of the most impressive we have ever seen,” he says.  “The region continues to demonstrate strong employment growth, high average income levels, and a highly educated workforce.  Market fundamentals are extremely strong, and will drive continued demand for the asset over time.”

            Gillis notes that job gains in the Louisville MSA far exceed multifamily deliveries. Approximately 8,500 new jobs have been added year-over-year, while only approximately 1,000 new multifamily units are being constructed each year. Further, the unemployment rate in Louisville is 4.6 percent, which is well below the national average of 5.5 percent. 

Mike Kemether
  “The median household income within a one-mile radius of the area is $115,000, a number that is consistent with the income levels seen at the property,” says Gillis. 

“In addition, rising construction costs, expensive nuances that accompany developing within Norton Commons, and land prices exceeding $1 million per acre will make the addition of new rental units extremely difficult. 

“This provides Passco with a competitive advantage over any new future development in Louisville for many years to come.”

Mike Kemether in Cushman & Wakefield’s Atlanta office adds, “The Veranda at Norton Commons is a unique project, strategically positioned as the only apartment component within the Norton Commons master planned community.”

For a complete copy of the company’s news release, please contact:

Devin Ugland / Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940
@CushWake on Twitter.

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