Passco Cos. Expands FL Portfolio With $64M Buy
The company purchased a 300-unit luxury community in the Crestview-Fort Walton Beach-Destin MSA, their second multifamily asset acquisition in the area in recent months.
Passco Cos. has acquired Legacy on the Bay, a 300-unit luxury community in Destin, Fla. Carter-Haston Real Estate Services sold the asset for $63.5 million. Walker & Dunlop represented the seller in this transaction, while KeyBank Real Estate Capital arranged acquisition financing on behalf of the buyer. According to Yardi Matrix data, the property last changed hands in 2012, when it traded for $35.8 million.
This is Passco Cos.’ second multifamily asset acquisition in Destin in recent months, following the purchase of a 288-unit community in November, located nearly 3 miles west of Legacy on the Bay. Located at 251 Vinings Way Blvd. near highways 98 and 331, the community is less than 1 mile from beaches and 2 miles from Destin Commons, a mall and lifestyle center offering residents shopping, dining and entertainment.
Legacy on the Bay is close to major employers such as Fort Walton Beach Medical Center, Northwest Florida State College and BAE Systems. Other employment opportunities come from tourism, as the Emerald Coast attracts nearly 4.5 million visitors each year. Colin Gillis, vice president of acquisitions for Passco, said the company is interested in the Crestview-Fort Walton Beach-Destin MSA due to its economic expansion potential, as it continues to have the lowest unemployment rate in the state. Passco’s current Florida portfolio adds up to 12 properties.
Built in 1999, the community consists of 12 three-story buildings sitting on a 16-acre site, per Yardi Matrix data. The unit mix features one- to four-bedroom apartments, with floorplans ranging from 784 to 1,456 square feet. All units have screened balconies and patios, stainless steel appliances, custom cabinetry, walk-in closets, ceramic-tiled foyers and air conditioning. Community amenities include a swimming pool, fitness center, tennis and basketball court, clubhouse, business center, community playground and dog park.
The new owner intends to implement value-add upgrades at the property, including minor renovations to refresh and modernize interiors and the addition of in-unit washers and dryers. The property was 97.7 percent occupied as of May.
Brian Moulder and Dhaval Patel of Walker & Dunlop negotiated the deal on behalf of the seller. Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group secured acquisition financing for the buyer.