 |
| 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
