Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., has acquired The Mill at New Holland, a new, best-in-class multifamily property located in Gainesville, Georgia, 40 miles northeast of Atlanta. The 284-unit, highly amenitized community, which was completed in 2020, was purchased from the developer, Mesa Capital Partners, for $65 million.
According to Colin Gillis, Vice President of Acquisitions at Passco, the firm identified the opportunity to preempt the marketing process through close relationships with the brokers and seller in order to secure this extremely high-performing asset.
“The momentum of The Mill at New Holland is incredibly strong and unmatched by almost anything we’ve seen previously,” explains Gillis, noting that the property reached stabilized occupancy in 9 months and was 75 percent leased before amenities were available. “The community’s rapid lease up, which occurred entirely during the pandemic, demonstrates the significant pent-up demand in the submarket, as several months saw leasing activity nearly exceed 50 per month. While Gainesville is a bedroom community of Atlanta, it enjoys its own identity and distinct economic drivers. The MSA consists of about 200,000 residents and the market is vastly underserved when it comes to the availability of luxury units.”
According to Gillis, Gainesville has experienced steady population increases over the past decade and is well positioned for future growth, with Moody’s giving the city a projected ‘first quintile’ ranking out of the 410 markets tracked for percentage job growth through 2024 – up significantly from the 2019 through 2021 rankings. Further, the Milken Institute consistently places Gainesville on its Top-10 Best-Performing Small U.S. Cities list.
The city is also known as the medical and education hub of Northeast Georgia. Northeast Georgia Medical Center, a sprawling and expanding medical campus that employs more than 8,000 people, is located in close proximity to The Mill at New Holland, and there are three universities in the city with a total of over 17,000 students. The industrial sector in the region is also rapidly growing, Gillis notes.
“Gainesville checks all the major boxes we evaluate when identifying opportunities in high-growth suburban areas, and we’re excited to enter the submarket while expanding our Southeast portfolio with The Mill at New Holland,” explains Gillis. “The property immediately attracted residents with an average household income of nearly $100,000 and has experienced no delinquency issues despite the challenges of the pandemic. In addition to the strength of the submarket as a whole, the asset’s success is also a testament to its exceptional quality and strategic location within walking distance of desirable neighborhood amenities, including over 138,000 square feet of retail anchored by one of the largest Kroger Marketplace stores in the region.”
Downtown Gainesville is just two miles from The Mill at New Holland and is home to several boutique stores, a wide variety of restaurants, and an entertaining and vibrant downtown nightlife.
“With only one nearby multifamily delivery in the near-term pipeline, located 10 miles south of The Mill at New Holland, this asset provides us with immediate and ongoing growth potential,” adds Gillis. “Mesa Capital Partners delivered a fantastic asset in an unmatched suburban location and we are extremely thankful for their team for delivering us a 100 percent leased property at closing.”
The Mill at New Holland’s competitive amenities include a 24-hour fitness and yoga/cross-training studio with fitness on-demand kiosks featuring Peloton bikes; a resort style pool with a sun shelf; an outdoor grilling station and TV area; an outdoor firepit; a cyber café; a community study and conference room; a club room with billiards and entertainment kitchen; a concierge package room; a dog park; a luxury pet spa; and a rideshare waiting area.
The property’s studio, one-, two-, and three-bedroom units feature granite countertops, stainless steel appliances, designer ceramic tile backsplash, 42-inch cabinets, wood plank flooring, 9-foot ceilings, and washer/dryers.
The Mill at New Holland is Passco’s fifth multifamily property acquisition within five months, bringing the firm’s total units added since September to 1,831.
Paul Berry and Shea Campbell of CBRE Southeast Multifamily represented the seller in this transaction.
The community is located at 1000 New Holland Way NE in Gainesville, Georgia. Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.