Passco Cos., based in Irvine, California, has acquired two luxury multifamily communities in Louisiana—the 330-unit Canal 1535 in downtown New Orleans and the 272-unit Sawgrass Point in Gonzales, a suburb of Baton Rouge—bringing its holdings in the state to 1,690 units. According to the company, both assets closed at contract pricing despite a volatile capital markets environment.
“Based on our long-standing relationships and deep experience in multifamily throughout market cycles, our team has continued to successfully identify and secure top assets in growing business and cultural hubs throughout the country,” said Colin Gillis, senior vice president of acquisitions.
The Class A Canal 1535 is the company’s first asset in New Orleans.
“This community is a one-of-a-kind property in an irreplaceable location, situated within a market that rarely sees apartment trade activity,” said Gillis. “We were able to take advantage of a truly once-in-a-generation opportunity to acquire a property of this caliber for a basis far below today’s replacement cost.”
The community, which will be managed by Greystar, offers one- and two-bedroom units with panoramic city views, quartz countertops, espresso kitchen cabinetry, GE stainless steel appliances, built-in microwaves, tiled backsplashes, undermount sinks, in-unit washers and dryers, smart home locks with keyless entry, Nest thermostats, USB ports, garden tubs, walk-in showers with frameless glass doors, and walk-in closets.
Residents also have access to garage parking, a clubhouse with a lounge, a resort-style heated swimming pool, a state-of-the-art fitness center, a business center with PC and Mac computers, a private conference room, a community kitchen and courtyard entertainment area, a covered putting green, a covered outdoor dog park and grooming station, bike storage, package lockers, rentable storage rooms, valet dry cleaning services, a furnished guest suite, and trash chutes on each floor.
According to Gillis, the Passco team identified an opportunity to obtain a Green Globes certification, which helped it secure competitive financing terms. Passco and the seller were represented by Cushman & Wakefield’s Mike Kemether and Larry G. Schedler & Associates’ Larry Schedler, Cheryl Short, and Christian Schedler.
Courtesy Passco Cos.
Sawgrass Point in Gonzales, Louisiana, has a wealth of amenities, including a resort-style swimming pool.
The Class AA Sawgrass Point brings Passco’s portfolio in the Baton Rouge metro to three multifamily communities with over 800 units.
“We’ve identified Greater Baton Rouge as a market with solid fundamentals that is poised for significant long-term growth,” explained Gillis. “This asset is situated within one of the best submarkets, Ascension Parish, which has the highest per capita income in Louisiana and ranks No. 1 in the state for population growth. Further, we will continue to benefit from amassing economies of scale in the market, with all three of our Baton Rouge assets managed by Arlington Properties.”
The community, which has maintained an occupancy of 97% and higher since lease-up, offers a mix of one-, two-, and three-bedroom floor plans. Units feature quartz countertops, stainless steel appliance packages, walk-in showers and soaking tubs, kitchen islands, balconies, walk-in closets, faux wood blinds, and garages with select townhomes.
Amenities include a car wash station, 24/7 package lockers, a resort-style swimming pool, a fitness center and yoga room, group workout classes with fitness on demand, an outdoor kitchen pavilion, a dog park, a dog washing salon, a playground, a gift-wrapping room, an on-site coffee bar, and a business center.
“This is an exceptionally crafted community that is well aligned with our strategy to acquire multifamily properties in secondary and tertiary markets that capture the lifestyle-oriented, renter-by-choice demographics,” added Gillis. “The developer had the foresight to incorporate several next-generation amenities, as well as build the asset to the highest National Green Building Standard.”
Passco and the seller were represented by Stirling Investment Advisors’ Chad Rigby and Saban Sellers and Walker & Dunlop’s Telly Fathaly.
