Passco Companies, a privately-held California-based real estate company that specializes in the investment, acquisition, development and management of commercial properties throughout the U.S., has announced that it has acquired a Class A, institutional grade, trophy multifamily asset in Sarasota, Florida for $77.5 million.
Passco will rebrand the luxury community, currently named Springs at Bee Ridge, as Longitude 82o. This acquisition brings the firm’s multifamily portfolio in the state of Florida to nine properties totaling more than 2,700 units.
“We were attracted to Sarasota due to its incredibly strong economic growth and growing demand for quality multifamily housing in the region,” says Colin Gillis, Vice President of Acquisitions, Southeast at Passco. “The pent-up demand for luxury product in this submarket was demonstrated by the rapid lease-up at the 360-unit apartment community, which was fully-leased within one year.”
Gillis notes that this high occupancy and the fact that there are virtually no comparable properties in the area, with most nearby communities having been constructed in the early 1990s, positions the property for strong future rent growth.
“Passco recognized that the demand for high-quality multifamily housing will continue to grow as Sarasota shows strong demographics, including annual average household incomes over $100,000 onsite at the property,” Gillis says. “The Bradenton-Sarasota-North Port MSA has also added over 25,000 jobs over the past two years and boasts one of the lowest unemployment rates in the entire state of Florida.”
According to Gillis, further driving the appeal of the location is Sarasota’s exceptional school system. The property is in close proximity to Ashton Elementary School and Sarasota Middle School. The community is also conveniently located within ten minutes of several first-class retail destinations, including The Mall at University Town Center.
“In addition to being one of the only new communities in the area, this property offers some of the most competitive amenities in Sarasota,” Gillis explains. “Further, this is the second asset we have purchased from the developer, Continental Properties, the other being Longitude 81o in Estero (Ft. Myers), FL so we were familiar with the product type and its strengths.”
Community amenities include a resort-style salt water swimming pool with an expansive sun deck and poolside kitchen with grills and a fire pit, 24-hour state-of-the art fitness center, a resident clubhouse and lounge, a conference room, coffee bar and catering kitchen, two leash-free dog parks, pet grooming station, car wash area, and controlled-access gated entry.
The property features a diverse unit mix, which includes studios and one-, two- and three-bedroom units. Each unit has private ground floor entry, stainless steel appliances, granite countertops, and nine-foot ceilings.
The property is located at 5900 Wilkinson Road in Sarasota, Florida with direct access to Interstate Highway 75, providing convenient access throughout the region and to the Tampa area and Southwest Florida.
Jamie May of JBM® Institutional Multifamily Advisors represented the seller and Passco as the buyer in this transaction. Since August 2016, Passco has worked with JBM to purchase four multifamily properties totaling over 1,250 units with an approximate value of over $250 million, according to May.
“Working with both Gary and Colin at Passco has been a very positive experience on each and every occasion. Their aggressiveness and vigorous approach is much appreciated and timely,” says May. “Most importantly, they have never re-traded a deal during or prior to closing. We expect to be working with Passco both on the buy and sell side many times in the future.”
Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.
About Passco Companies, LLC
Celebrating our 20th Anniversary in 2018, Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multifamily and commercial properties throughout the U.S.
Passco offers a full set of real estate services including asset and property management, leasing, as well as property development and construction.
Headquartered in Irvine, California, Passco currently has $2.5 billion assets under management and is involved with over 50 properties in 17 states. Passco is actively growing its portfolio in primary and secondary markets throughout the nation.