Passco Finds a Jewel in Houston Suburbs
- Aug 26, 2019
Attracted by Greater Houston’s expanding employment and growing population, Passco Cos. purchased Boterra Bay Apartments located in Baytown, Texas, from a joint venture involving The Boterra Group and Edison Capital Holdings. Newmark Knight Frank represented the seller in the deal, while KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of the buyer.
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“We were fortunate that completing this transaction was a smooth and straightforward process,” Jake Niles, Passco Cos.’ director of acquisitions – West, told Multi-Housing News.
The transaction marks Passco Cos.’ second acquisition in the Houston MSA since mid-April, when the company purchased The Grayson, a 330-unit community in Spring, Texas. Now, Passco Cos.’ is set to rebrand the 384-unit Class A+ property in Baytown as Sapphire Bay Apartments.
According to Niles, a challenge came up with financing the deal, as the treasury market moved substantially and spreads were on the rise. “Our team strategically and creatively moved to lock in our rate early on, in order to help mitigate any potential shortfalls,” Niles noted.
Located at 99 W. Cedar Bayou Lynchburg Road, the three-story garden-style apartment community features one-, two- and three-bedroom apartment homes.
Residences offer stainless steel appliances, single-basin kitchen sinks with goose-neck faucets, gray plank style wood flooring, ceiling fans with overhead lighting and large walk-in closets. Leading the roster of amenities is a large lounge pool with in-water tanning deck and private poolside cabanas.
Due to its large petrochemical hub, Houston’s Baytown submarket benefits from a vibrant job base. More than $12.5 billion in recently completed or ongoing ExxonMobil and Covestro company expansions promise to bring in more than 650 new jobs. Along with those new employment positions will come many new area residents.
Additional employment growth is forecast for Baytown’s hospitality and health care sectors over the next five years. In addition, a $100 million redevelopment of the San Jacinto Mall into the 1 million-square-foot open-air San Jacinto Marketplace will enhance Baytown’s standing as an attractive live-work-play community.
More than 1,300 new residential units are planned for Baytown in the next five years. But less than 340 are now under construction, suggesting resident demand for Sapphire Bay Apartments should remain robust.