Done Deals: PASSCO Bolsters Houston-Area Portfolio with Acquisition of 330-Unit Multifamily Asset in Spring, TX

Wednesday, April 24, 2019

PASSCO Bolsters Houston-Area Portfolio with Acquisition of 330-Unit Multifamily Asset in Spring, TX

The Grayson Apartments, 4115 Louetta Road, Spring, TX

Spring, TX (April 24, 2019) — Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., has acquired The Grayson, a 330-unit, Class A apartment community in the northern Houston submarket of Spring, Texas.

The acquisition is a strong addition to the firm’s portfolio, well-aligned with Passco’s strategy to identify top-tier multifamily assets in high-growth markets, according to Jake Niles, Director of Acquisitions – West at Passco Companies.

Jake Niles

“Long considered the ‘Energy Capital of the World,’ the greater Houston area has also experienced a significant influx of jobs in recent years, achieving the highest rate of employment growth among the country’s top 12 MSAs last year at more than twice the national average,” explains Niles.

“Major employers including Amazon, Texas Medical Center, and Daikin Industries having recently undergone or are currently in the midst of expansions bringing thousands of jobs, driving further growth, and increasing the area’s appeal.”

The Grayson is located within close proximity to Interstate 45 and State Highway 99, providing residents with convenient access to downtown Houston, as well as throughout the greater metropolitan area and northern submarkets.

The location also positions the community within the Klein Independent School District, a distinct advantage over otherwise comparable nearby properties, notes Niles.

“In addition to being situated within an expanding economy, this community comes with significant curb appeal as one of just a handful of newly constructed multifamily properties in an affluent area with a limited development pipeline,” continues Niles.

Josh Goldfarb

“The Grayson’s best-in-class design and amenities meet and exceed the expectations of today’s residents. The asset also presents the opportunity for additional upside based on significant rent growth in popular neighborhoods further north.”

Niles notes that due to Passco’s deep broker and seller relationships, the firm was able to acquire this remarkable asset at below replacement cost in a seamless transaction.

“The Grayson benefits from ideal positioning within a burgeoning Houston submarket and an immediate area with increasingly affluent demographics. It was an absolute pleasure to work with the Passco team on the prime opportunity to add this exceptionally designed asset, with stellar growth projections, to their portfolio.

All parties came together to facilitate a smooth and satisfying transaction,” says Josh Goldfarb, Vice Chair, Southeast Multifamily Advisory Group for Cushman & Wakefield.

John Carr

The Grayson’s open-concept one-, two-, and three-bedroom units include stainless steel appliances, island kitchens with recessed LED lighting, granite kitchen countertops with undermount sinks, full-size washer/dryers, modern cabinets and fixtures, garden tubs, glass showers, and wood-style plank flooring.

Competitive features of the gated and secured community include a fitness center with cardio, resistance training, and free weights, spacious dog park, jogging trail, fully equipped resident lounge and kitchen, cyber café, a resort-style swimming pool, outdoor courtyard kitchen with grilling stations and a fireplace, and premium reserved parking spaces.

Goldfarb and John Carr of Cushman & Wakefield’s Southeast Multifamily Advisory Group represented Passco as the buyer and Bridgeview Louetta LLC as the seller in this transaction.

Chris Black

The Grayson, constructed in 2016, is located at 4115 Louetta Road in Spring, Texas.

Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.

About Passco Companies, LLC

Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multi-family and commercial properties throughout the U.S.

Passco offers a full set of real estate services including asset and property management, leasing, as well as property development and construction.

Caleb Marten

Headquartered in Irvine, California, Passco currently has $2.8 billion assets under management across the country and is actively growing its portfolio in primary and secondary markets throughout the United States.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners.

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners.

Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services.