Passco Extends in ATL with $69M Acquisition
The increasing job and population growth in Gwinnett County is what drove Passco Cos. to make the investment, with existing assets like Merritt at Sugarloaf presenting strong value-add opportunities.
By Tudor Scolca
Merritt at Sugarloaf, 2951 Satellite Blvd. N.W.
Passco Cos. has acquired a Class A, 424-unit community in Duluth, Ga., from an affiliate of Roseview Group. The property traded for $68.9 million, with a CBRE handling the transaction of behalf of the seller.
KeyBank Real Estate Capital’s Commercial Mortgage Group provided acquisition financing for Passco Cos. The two companies collaborated before, most recently with the acquisition of a luxury community in Montgomery, Ala.
Merritt at Sugarloaf totals 452,084 square feet of rentable space. The asset consists of 172 one-bedroom, 228 two-bedroom and 24 three-bedroom units, which range in size from 884 to 1,458 square feet. The asset is situated in Gwinnett County, at 2951 Satellite Blvd. N.W. Community amenities include a cyber café, fitness and yoga room, two swimming pools, tennis courts, playground, a fire pit with grilling and picnic areas and a lake.
The community is minutes away from Interstate 85, which provides access around the Atlanta metro. The Gwinnett Place Mall is near Merritt at Sugarloaf, and offers multiple shopping and dining options. Other nearby destinations include the Georgia Trail at Sugarloaf and Northwood Country Club golf courses, several movie theaters and entertainment venues at Gwinnett Place.
Gwinnett’s growth
Vice President of Acquisitions at Passco, Colin Gillis, stated that population and job growth is expected to continue in Gwinnett County, with more than 150,000 jobs to be added over the next 15 years.
“While the significant migration to Duluth and Gwinnett County has led to construction of single-family housing, new multifamily starts are very well-regulated by the county, in comparison to Atlanta’s urban core. Existing product like Merritt at Sugarloaf is in high demand, making the community a solid long-term investment. Merritt presents a strong value-add opportunity, with 117 of the 424 units presenting a built-in $70 premium with light-to-moderate upgrades,” said Gillis in a prepared statement.
Image courtesy of Passco Cos.
