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| Ocean Walk Apartments, Monroe County, Key West, FL |
KEY WEST, FL – 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 Ocean Walk Apartments, a 297-unit multifamily community in the
Monroe County of Key West, Florida for $101.5 million, the largest single-asset
transaction in the firm’s history.
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| Colin Gillis |
This is an extremely rare
find as this property is one of only three professionally-managed multifamily
communities in Key West, representing nearly half of the multifamily supply on
the entire island, according to Passco’s Vice President of Acquisitions for the
Southeast, Colin Gillis.
“Key West is without a doubt one of
the highest barriers to entry markets in the entire country with relatively no
remaining development sites, extremely limited competition and a
highly-mandated growth ordinance,” adds Gillis.
Gillis explains that there
are only two other competing apartment communities on the island, both of which
have demonstrated consistently above-average occupancy rates and explosive
year-over-year rent growth.
Located on the Atlantic
side of the island, Ocean Walk is located in close proximity to the beach, a
diverse variety of restaurants, retail, entertainment hubs in downtown and the
Key West International Airport.
The property features a variety of amenities,
including a clubhouse, swimming pool with an expansive sundeck, tennis courts,
and basketball court, among others.
“This is an asset that will
continue to perform over time and one that we plan to hold long-term,” explains
Gillis. “Our strategic approach is to continue a series of capital improvements
to upgrade the property, further positioning it for long-term growth.”
During prior ownership,
the seller extensively upgraded the majority of the unit interiors with granite
countertops, stainless steel appliances, and new cabinetry and flooring, in
addition to completing considerable exterior improvements. Passco plans to renovate and update the
remaining 10% of the 297 units that were not updated during prior ownership.
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| Hampton Beebe |
Gillis notes that Passco
has been extremely active in the Florida market, acquiring more than eight
properties in Florida in the last two years.
In addition, Passco has
also remained extremely active in multiple markets across the U.S. and
currently has acquired four additional properties thus far in 2017, totaling
more than $350 million, with several more that are planned to close over the
next few months.
“Ocean Walk, along with
the additional assets in our acquisition pipeline, is putting us on track to
reach our $1 billion goal in commercial real estate assets this year,” says
Gillis. “We recently surpassed $2 billion in assets under management, and we
plan to continue this momentum, growing our portfolio with high-quality,
well-located assets across the country.”
Hampton Beebe,
Executive Managing Director at ARA Newmark, the broker involved in the deal
adds, “Ocean Walk is truly a one-of-a-kind asset that will continue to benefit
from the market’s demand drivers. The Key West market has experienced strong
population gains, record rent growth, and is greatly under supplied. This,
coupled with the recent renovations completed at the property, provides
exceptional value potential for Passco.”
The apartment community is
located at 3900 South Roosevelt Boulevard in Key West, Florida. Hampton Beebe
with ARA Newmark represented the seller, a partnership between Mast Capital and
Rockpoint Group, and the buyer, Passco Companies.
Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage
Group arranged acquisition financing for Passco Companies through Fannie Mae.
BGC Partners is led by
Chairman and Chief Executive Officer Howard
W. Lutnick.
For more information on this news release, please
contact:
Lauren Burgos/ Lexi
Astfalk
Brower, Miller & Cole
(949) 955-7940
