Passco Cos. has acquired a Class A, 288-unit apartment community in Destin, Fla. for $63.3 million from Atlanta-based Catalyst Development Partners.
Located at 4320 Commons Drive W. in Destin, Sea Glass Apartments offers a mix of studios, one-, two- and three-bedroom floor plans. The community features best-in-class amenities including a resort-style swimming pool with pool chiller, fitness studio, grand clubroom with billiards and media center, breakfast bar, indoor-outdoor bar area, package concierge and business center.
Barriers to entry
Completed in 2017, the five-building community is situated within the Crestview-Fort Walton Beach-Destin MSA, a market with growing demand for luxury multifamily apartments.
“The property leased up at a record pace, reaching 100 percent occupancy in less than seven months with no concessions,” said Colin Gillis, vice president of acquisitions for Passco, in prepared remarks. “Effective rents at the property are extremely impressive, and in many cases, they exceed rent levels for similar luxury assets in the more well-known Florida markets like Tampa and Orlando. Additionally, the barriers-to-entry in the market are very strong on all fronts – physical, political and financial.”
Destin has witnessed strong, consistent year-over-year job growth. It has also recorded the highest non-farm payroll job growth in the state of Florida.
“This influx of new jobs is driven largely by the leisure and hospitality increases in the market, expansions in medical and education sectors serving the explosive population growth, and large increases in defense spending, benefiting the three military bases in the area, including Eglin AFB, one of the largest military installations in the world,” Gillis said, adding that, collectively, the military facilities employ a nearly 100,000 people. In addition to that, large technology and defense contractors such as Boeing, BAE Systems, Lockheed Martin and L3 Technologies have expanded in the region.
Sea Glass Apartments is situated in the Okaloosa County School District, with the second highest ranking in Florida. It is also within steps of primary retail destinations and directly across from Henderson Beach State Park.
The JLL Florida Capital Markets team of Matt Wilcox, Jubeen Vaghefi and Denny St. Romain brokered the transaction.
In October, Passco expanded its Southeast portfolio by acquiring the 312-unit Asheville Exchange rental community in Asheville, N.C.
Image courtesy of Passco Cos.