Wednesday, August 20, 2014

Passco Companies Forms Joint Venture with InSite Investment Realty to Acquire 270-Unit Multifamily Community in Tempe, AZ for $25 Million


Ovation at Tempe, AZ Apartments
TEMPE, AZ – Passco InSite, LLC,  a joint venture between Passco Companies, LLC and InSite Investment Realty, has acquired the 270-unit Class B garden-style multifamily community Ovation at Tempe for $25.85 million.

According to Bill Passo, CEO and Founder of Passco Companies, this new joint venture is an extension of a 20-year relationship with long-standing track record, market expertise and multifamily investment experience.

According to Passo, investors will have the opportunity to invest in the Ovation at Tempe property through crowdfunding, as well as through the broker-dealer community.

Bill Passo
“This is a strong, value-add investment opportunity in a market that is in a proven recovery,” explained Passo. 

“The Tempe submarket posted positive absorption and a low 3.7 percent vacancy in the first quarter of 2014, and a 3.5 percent rental growth is forecasted by the end of the year.”

In addition, Tempe’s market fundamentals are rebounding rapidly according to Passo, who noted that the state of Arizona is on track to rank first in the nation in future job growth, projecting a three percent rise annually over the next five years.

“This projected job growth will drive deep demand for quality housing, which will bolster the profitability of this investment over our hold period,” he explained.

The Passco InSite partnership plans to hold the property for three years.  Under this ownership, value-add improvements will be implemented, which will drive rent growth for the asset, according to Passo. 

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

Corynne Randel / Jenn Quader
Brower, Miller & Cole
(949) 955-7940
     

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