Passco Invests $102M in Key West
- Aug 25, 2017
Passco Cos. acquired Ocean Walk Apartments in the Monroe County of Key West, Fla., for $101.5 million. This purchase marks the company’s largest single-asset transaction. The property is one of three professionally managed multifamily communities in the area, representing nearly half of the island’s multifamily supply.
Located on the Atlantic side of the island at 3900 South Roosevelt Blvd., the 297-unit pet-friendly community comprises one-, two- and three-bedroom floorplans ranging from 500 to 1,075 square feet. Interior features include plank flooring, stainless steel appliances and upgraded cabinetry and finishes. Residents have access to amenities such as community gas grills, picnic areas, a tennis court, laundry facility, basketball court, beach jogging path and swimming pool with a sundeck.
Under Supplied and In Demand
The previous owners, a partnership between Mast Capital and Rockpoint Group, updated a large majority of the unit interiors. Passco has plans to renovate and upgrade the remaining 10 percent of the units that were not yet touched.
“The acquisition of Ocean Walk aligns perfectly with our firms strategy to acquire quality assets in irreplaceable locations. Key West is arguably the highest supply-constrained rental market in the United States with extremely high barriers to entry,” Colin Gilis, vice president of acquisitions for the Southeast at Passco Cos., told Multi-Housing News. “Highly mandated residential growth programs have restricted multifamily development in Key West and very limited competition fosters a very favorable rental environment for apartment owners. There are only three professionally owned multifamily communities on the island, including Ocean Walk. Our strategy is to hold this asset long-term and further position it for continued, stabilized growth.”
ARA Newmark’s Executive Director Hampton Beebe represented both the seller and the buyer. The company also represented Passco when it sold The Village at Lionsgate, a 360-unit community in the Kansas City submarket of Overland Park, Kan. Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing for Ocean Walk through Fannie Mae on behalf of Passco. The community offers easy access to Key West International Airport, the beach, restaurants, retail and entertainment downtown.
Images courtesy of Passco Cos.