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 a luxury Class A, trophy multifamily asset in Chesterfield, Missouri, from Watermark Residential for $98 million. The firm will rebrand the 345-unit community, previously named Watermark at Chesterfield Village, as The PARQ at Chesterfield.
According to Keanan Gomez, Director of Acquisitions at Passco, the purchase is well aligned with the firm’s strategy to acquire best-in-class apartment communities in suburban markets throughout the country that have demonstrated strong demographic trends.
“The PARQ at Chesterfield is the first new multifamily community built in the submarket in more than 30 years, and the property’s success during lease-up demonstrates the pent-up demand for luxury rental units in the market,” explains Gomez, noting that the community reached stabilized occupancy in less than 14 months and performed well during the pandemic. “We quickly recognized the opportunity to acquire a superb asset in a market that is experiencing significant growth in white-collar employment, including more than 7,000 jobs within a 5-mile radius of the property.”
Gomez also points to Chesterfield’s high quality-of-life scores, including an overall grade of A+ from Niche, as driving interest from potential residents. The location offers access to exceptional school districts, premier parks, nationally ranked hospitals, and world-class employers, such as Pfizer, RGA, Centene, Bunge, and Bayer.
“In addition to strong existing fundamentals, Chesterfield is well positioned for continued growth,” confirms Gomez. “The city is seeing a trend of major commercial development, including Wildhorse Village, a mixed-use project that will feature approximately 1 million square feet of office and 100,000 square feet of retail, located within a mile of The PARQ. With the flight to the suburbs accelerated this past year, we anticipate strong midwestern cities like Chesterfield will do very well and continue to attract residents looking for additional space and a lower cost of living.”
Gomez also explains that the exceptional quality of The PARQ at Chesterfield adds to its appeal: “Watermark Residential has constructed a phenomenal asset that does not miss a beat, meeting and exceeding today’s design and amenity expectations for luxury, Class A communities.”
The asset’s community amenities include a resort-style swimming pool, 24-hour state-of-the-art fitness center, a Starbucks coffee bar, private open-air courtyards, an outdoor firepit area, custom grilling stations, focus rooms, corporate suites, 24-hour package pick-up, and monthly resident activities. The pet-friendly community also features a dog wash on site.
The PARQ at Chesterfield offers a range of one-, two-, and three-bedroom units that feature nine- or eleven-foot ceilings, full size washers and dryers, garden tubs, a modern gourmet bar kitchen, granite countertops, a private patio or balcony, and a walk-in closet, with wood-look flooring in select units.
“We secured this rare opportunity through an excellent working relationship with Watermark Residential and Andrea Kendrick, Ken Aston, and Bobby Mills of Berkadia,” says Gomez. “Additionally, we were able to act quickly and strategically, completing a 21-day due diligence process and a smooth and fast transaction for all parties.”
The PARQ at Chesterfield is located at 16300 Lydia Hill Drive in Chesterfield, Missouri. Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.