Passco buys Bradenton apartments for $75M

Fueled by potential future yield and a desire to beef up its Florida portfolio, California-based Passco Cos. LLC has invested $75 million to acquire the ParkCrest Landings apartments, in Bradenton.

Colin Gillis, Passco's vice president of acquisitions, says the company was drawn to the 400-unit complex, which was completed in 2015, because of its “irreplaceable” location and “unheard of” amenities.

The 17-building, garden-style complex, at 5725 First Ave. E., sits on nearly 70 acres and is adjacent to a nature preserve. Amenities include a swimming pool, children's splash park, multiple clubhouses, a dual fitness center, an on-site movie theater, a 1.5-mile walking trail, volleyball and tennis courts and a kayak launch.

“This is the most over-amenitized project I've seen in my entire career,” says Gillis. “It's full of extremely unique features.”

In addition, 75% of all the units in ParkCrest, which was developed by Tampa-based CKT Development, have views of either the water or woods, Gillis says.

From an investment perspective, ParkCrest also made sense, he adds.

“We're yield-driven investors, and we like to buy in secondary markets where we can generate greater economic returns for our investors,” Gillis says. “And this was a chance to put out a lot of equity at once.”

Passco acquired ParkCrest at a 5.5% to 6% capitalization rate, a yield somewhat better than similar investments in other cities might generate, he says.

ParkCrest's occupancy is 90%, and rents average about $1,375 per month.

The complex becomes Passco's fourth multifamily investment in Florida, joining communities in Orlando, St. Petersburg and Pensacola. In all, the company now owns roughly 1,200 units in Florida — but Gillis says Passco would like to augment that figure.

“We're looking all over the state, from Jacksonville to Sarasota and on down to Naples,” he says.

In all, Passco owns more than $3 billion worth of real estate in 16 states.