Passco Cos. recently announced the purchase of Legacy on the Bay, a 300-unit luxury apartment community in Destin, Fla. Passco bought the property from Carter-Haston Real Estate Services, a private fund and property management firm based in Nashville for $63.45 million. Brian Moulder and Dhaval Patel of Walker & Dunlop represented the seller. Destin is in Florida’s panhandle and is part of what’s known as the Emerald Coast, a desirable real estate market flying below the radar that attracts 4.5 million visitors a year.
“We’ve enthusiastically targeted the Crestview-Fort Walton Beach-Destin MSA for its strong track record and future economic expansion potential, as it continues to post the lowest unemployment rate in the state of Florida,” says Colin Gillis, vice president of acquisitions for Passco. “Additionally, this market continues to have extremely high physical, political, and financial barriers to entry. There is only one multifamily asset in the pipeline in the entire MSA, despite significant in-migration and a population growth rate of more than twice the national average.”
Courtesy Passco Cos.
Swimming pool at Legacy on the Bay
Gillis points to Moody’s Analytics placing the area in the top 10th percentile nationally for projected job growth over the next five years as a good reason for snapping up Legacy on the Bay, which is the company’s second recent acquisition in the panhandle. In December 2018, the firm bought Sea Glass Apartments, a Class A property. Both acquisitions are close to major employers, including Fort Walton Beach Medical Center, Northwest Florida State College, and BAE Systems.
Legacy on the Bay offers value-add opportunity in the form of plans to install in-unit laundry and freshen up the interiors. The units already include stainless steel appliances, deep kitchen sinks, custom cabinetry, built-in shelving, walk-in closets, tiled foyers, security alarms, screened balconies, and patios.
The property also has something that most competitors don’t—four-bedroom floor plans. “Legacy’s spacious one-, two-, three-, and four-bedroom floor plans are well-suited to its location, which offers tranquil living surrounded by lush greenery,” says Gillis. “Further, the larger floor plans are appealing to families who are drawn to the Okaloosa County School District, one of the top five districts in the state.”
Community amenities include a swimming pool, a 24-hour fitness center, a clubhouse, a business center, garage parking, a playground, a dog park, and tennis and basketball courts. Passco now owns 12 multifamily properties in Florida.