Passco Cos. Buys Two Luxury Multifamily Communities Totaling 602 Units in Louisiana

 

Colin Gillis

NEW ORLEANS, LA and BATON ROUGE, LA  — Passco Companies, a privately held California-based commercial real estate company that specializes in real estate acquisition, development, and asset management throughout the U.S., has acquired two luxury multifamily communities totaling 602 units. 

Canal 1535 apartments, Downtown New Orleans, LA

 

They are Canal 1535, a 330-unit asset in Downtown New Orleans, and Sawgrass Point, a 272-unit asset in the Baton Rouge metropolitan area submarket of Gonzales, Louisiana.

 Both assets closed at contract pricing despite a volatile capital markets environment. Prices and terms were not disclosed.

Sawgrass Point apartments, Gonzales, LA

 These acquisitions bring Passco’s current holdings in the state to 1,690 units and exemplifies the firm’s strategy of identifying highly amenitized, best-in-market multifamily properties poised to benefit from strong fundamentals and growing renter demand, according to Colin Gillis, Senior Vice President of Acquisitions at Passco.

Caleb Marten 

“Based on our long-standing relationships and deep experience in multifamily throughout market cycles, our team has continued to successfully identify and secure top assets in growing business and cultural hubs throughout the country,” explains Gillis.

 

Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies for both transactions.

 Passco’s two recent acquisitions include:

 Canal 1535

 Passco Companies has acquired Canal 1535, a 330-unit luxury Class A multifamily high-rise community situated at 1535 Canal Street within the heart of historic Downtown New Orleans, marking the firm’s first asset in the city.

Mike Kemether 

“This community is a one-of-a-kind property in an irreplaceable location, situated within a market that rarely sees apartment trade activity,” says Gillis.

 “We were able to take advantage of a truly once-in-a-generation opportunity to acquire a property of this caliber for a basis far below today’s replacement cost.”

 Both Passco and the seller were represented by Mike Kemether of Cushman & Wakefield and Larry Schedler, Cheryl Short, and Christian Schedler of Larry G. Schedler & Associates, Inc.

Larry Schedler

Kemether says: “The Passco team recognized the tremendous value of this property’s best-in-class amenities package and central location, in close proximity to the plentiful employment of the New Orleans CBD and BioDistrict Medical Center.

 "Provident, the community developer, foresaw the area’s strong potential when carrying out the vision for this community, which led to a successful transition from developer to owner.”

 Schedler adds: “Canal 1535 is a premier mid-rise multifamily community in the state of Louisiana. The property is strategically positioned in the center of downtown New Orleans and within walking distance to the French Quarter – a truly irreplaceable asset on Historic Canal Street.”

The property will be managed by Greystar.

Cheryl Short

Sawgrass Point

 Passco Companies has also purchased Sawgrass Point, a 272-unit luxury, Class AA multifamily community at 2163 Veterans Boulevard in the Baton Rouge submarket of Gonzales, Louisiana.

Christian Schedler 

This acquisition brings the firm’s portfolio in the Baton Rouge metropolitan area to three multifamily properties exceeding 800 units, notes Gillis.

 “We’ve identified greater Baton Rouge as a market with solid fundamentals that is poised for significant long-term growth,” says Gillis.

 “This asset is situated within one of the best submarkets, Ascension Parish, which has the highest per capita income in Louisiana and ranks #1 in the state for population growth.

 "Further, we will continue to benefit from amassing economies of scale in the market, with all three of our Baton Rouge assets managed by Arlington Properties.”

 Chad Rigby

“This is an exceptionally crafted community that is well aligned with our strategy to acquire multifamily properties in secondary and tertiary markets that capture the lifestyle-oriented, renter-by-choice demographics,” says Gillis.

 “The developer had the foresight to incorporate several next-generation amenities, as well as build the asset to the highest National Green Building Standard.”

 Passco and the seller were represented by Chad Rigby and Saban Sellers of Stirling Investment Advisors (SIA) and Telly Fathaly of Walker & Dunlop.

 Rigby notes: “Multifamily assets remain an attractive investment, especially in high-growth submarkets like Gonzales and the surrounding Baton Rouge area.

Saban Sellers

 "We enjoyed working with Passco and our partners at Walker & Dunlop through this process and are excited to see this deal come to fruition.

 "SIA and Walker & Dunlop are proud to have played a role in such an excellent acquisition and disposition opportunity for our clients.”

 Sawgrass Point, which has maintained an occupancy of 97% and higher since lease-up, provides residents with immediate access to Interstate 10 and is located within a 20-minute drive of the major employment centers of East Baton Rouge, and an approximately 45-minute drive from New Orleans.

 Telly Fathaly

The gated community offers a car wash station, 24/7 package lockers, a resort-style pool, a large fitness center and yoga room, group fitness classes with fitness on demand.

Also: an outdoor kitchen pavilion, a spacious dog park, a dog washing salon, a playground, 24-hour emergency maintenance, pool table, elevator service, air-conditioned interior corridors.

Also: a gift-wrapping room, ice machines, an on-site coffee bar, and a business center.

Contacts:

Elisabeth Manville / Arleeny Escarcega

The Smart Agency, Inc.

(949) 438-6262

emanville@thesmartagency.com