Passco Cos. has acquired two luxury multifamily communities with 552 units in Baton Rouge, Louisiana, marking its entrance into the state’s capital. This brings the California-based commercial real estate company’s year-to-date acquisition volume to $792 million.
The 276-unit Tapestry Long Farm was purchased from the property’s developer, Birmingham, Alabama-based Arlington Properties, and the 276-unit Sweetwater Apartment Homes was acquired in an off-market transaction from the property’s developer, Hammond, Louisiana-based Stoa Group. Arlington Properties will manage both communities.
“These acquisitions exemplify Passco’s long-term strategy of identifying exceptional assets in up-and-coming markets where value creation is still possible,” said Passco president Larry Sullivan. “Baton Rouge is an often overlooked investment market with solid fundamentals poised for substantial long-term growth. Drive by health care, education, and government, the city’s employment is steadily growing, supporting a strong population of renters. The Port of Greater Baton Rouge in conjunction with strong chemical and industrial sectors add to a well-rounded and diversified local economy.”
According to Passco, multifamily demand in the region also is being bolstered by limited supply, with Baton Rouge recently reporting a decrease in properties available for rent since the start of the COVID-19 pandemic.
“Each of these acquisitions is in a high barrier-to-entry pocket based on the localized dynamics of Baton Rouge’s development climate,” said Colin Gillis, vice president of acquisitions. “The majority of existing multifamily product in this market has been developed to only address basic housing needs; however, these properties are built to national luxury design standards seen in most primary markets, reflecting an elevated offering for more discerning renters.”
Steve Hogben Photography
Tapestry Long Farm is located within the Long Farm Village master plan in Baton Rouge, Louisiana.
Tapestry Long Farm is a Class A community in the Long Farm Village master plan. Built in 2017, it is less than 6 miles from the city’s most active medical campus and in close proximity to the region’s major employers. It features a mix of one-, two-, and three-bedroom floor plans with luxurious interior finishes and high-end amenities, such as a fitness center, a business center, an auto center, a pet park and grooming station, a sports pub, a swimming pool, and a yoga and spin studio.
“This property’s location is irreplaceable. Backed by a well-known and respected master plan developer, Long Farm Village is only 40% built out, giving Passco an opportunity to enter into this developing location at an early stage,” noted Gillis. “This 235-acre mixed-use development comprises high-end single-family residential, as well as retail, office, and entertainment/recreation options that will drive multifamily demand from the region’s strong demographic of workers.”
Passco and the seller were represented by Cushman & Wakefield’s Mike Kemether and Larry Schedler.
Sweetwater Apartments is a newly delivered and recently stabilized Class A property in Addis, a western suburb of Baton Rouge. The community is in close proximity to Louisiana State University, the 3,000-employee Dow Chemical plant as well as other employers, and downtown Baton Rouge. Luxury floor plans include stainless-steel appliances, faux wood blinds, full-sized washers and dryers, and pendant lighting, among other high-end finishes. Amenities include a walking trail, a resort-style pool, a car wash and vacuum station, a game room, a dog park, and a resident coffee bar.
“This is the only luxury multifamily property on the west side of the Mississippi River, giving Passco an opportunity to differentiate from local competition,” said Gillis. “The surrounding neighborhood boasts the most in-demand school system in the region, and residents have easy access to major employers in both West and East Baton Rouge whole enjoying the quiet lifestyle this area provides.”
Passco and the seller were represented by Jeffery Glassover and Matthew Raitz of Glassover & Raitz.
