Passco Cos. has acquired a new multifamily community in Gainesville, Georgia, from the developer, Mesa Capital Partners, for $65 million. The Mill at New Holland, completed in 2020, features 284 units and a wealth of amenities.
The privately held California-based commercial real estate company identified the opportunity to preempt the marketing process through close relationships with the brokers and seller to secure the high-performing asset, which reached stabilized occupancy in nine months and was 75% leased before amenities were available.
“The momentum of The Mill at New Holland is incredibly strong and unmatched by almost anything we’ve seen previously,” says Colin Gillis, vice president of acquisitions at Passco. “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.”
According to Gills, the MSA consists of about 200,000 residents, and the market is underserved when it comes to luxury apartments. The city continues to see steady population growth and has been consistently ranked as one of the top 10 performing small cities by the Milken Institute. It also is a medical and education hub in northeast Georgia.
“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,” says 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.”
The community includes studio, one-, two-, and three-bedroom units with granite countertops, stainless steel appliances, designer ceramic tile backsplashes, 42-inch cabinets, wood plank flooring, 9-foot ceilings, and in-unit washers and dryers. Amenities include a 24-hour fitness and yoga/cross-training studio with on-demand kiosks featuring Peloton bikes, a resort-style pool, an outdoor grilling station and TV area, an outdoor fire pit, a cybercafe, a community study and conference room, a clubroom with billiards and an entertainment kitchen, a concierge package room, a dog park, a pet spa, and a ride-share waiting area.
This transaction marks Passco’s fifth multifamily property acquisition within five months, bringing its total units added since September to 1,831.
CBRE Southeast Multifamily’s Paul Berry and Shea Campbell represented the seller in the transaction. Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco.