Thursday, March 15, 2018

Passco Companies Acquires 424-Unit Multifamily Community in Atlanta Submarket for $68.85 Million

Merritt at Sugarloaf Apartments, Duluth, GA

Duluth, GA (March 12, 2018) – Passco Companies, a privately-held California-based real estate company that specializes in the investment, acquisition, development and management of commercial properties throughout the U.S., has acquired Merritt at Sugarloaf, a 424-unit multifamily asset in Duluth, Georgia, for $68.85 million.
Duluth and surrounding Gwinnett County continue to be standouts among Atlanta submarkets for both regional employment growth and population gains, according to Colin Gillis, Vice President of Acquisitions, Southeast at Passco. 
 “This acquisition is perfectly-aligned with our strategy to identify multifamily communities in submarkets poised for strong, sustained growth across the country,” says Gillis. “This asset is ideally-situated in a location that offers its residents premier access to employers in the immediate area and throughout the Atlanta MSA.

" Gwinnett County has experienced rapid and broad-based job creation throughout the long-running economic growth cycle, with particular emphasis in technology, biosciences and financial services fields. This job growth has brought with it the highest population gains of all counties in the greater Atlanta area every year since 2010.”

Colin Gillis
Both the exceptional job and population growth are expected to continue, with Gwinnett forecasted to add over 150,000 jobs over the next 15 years, or a 40 percent increase. The county is projected to overtake Fulton as the most populous in the MSA, Gillis continues.
“While the significant migration to Duluth and Gwinnett County has led to construction of single-family housing, new multifamily starts are very well-regulated by the County, in comparison to Atlanta’s urban core, and areas inside and just outside the I-285 Perimeter,” Gillis explains. 
“Existing product like Merritt at Sugarloaf is in high demand, making the community a solid long-term investment. Further, Merritt presents a strong value-add opportunity, with 117 of the 424 units presenting a built-in $70 premium with light-to-moderate upgrades.”
Paul Berry and Shea Campbell of CBRE represented the seller, an affiliate of Roseview Group, a pension fund advisor based in Boston, Massachusetts.
The property, which was built in 1999, is located near the Interstate 85/State Route 316 interchange at 2951 Satellite Boulevard Northwest in Duluth, Georgia. The community is currently 95 percent occupied.
Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.

For more information, please contact:
Elisabeth Manville · Senior Account Executive 
O 949 955 7940 · C 949 584 4046
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