Passco Increases Florida Portfolio with $63M Multifamily Buy

DESTIN, FL—Following up its December purchase of the Sea Glass Apartments here, Passco Companies has acquired the 300-unit Legacy on the Bay multifamily community for $63.45 million.

Legacy on the Bay, located at 251 Vinings Way Blvd. near U.S. Highway 98 and U.S. Highway 331, is near major employers including Fort Walton Beach Medical Center, Northwest Florida State College and BAE Systems.

Passco acquired Legacy at the Bay from Carter-Haston Real Estate Services, a Nashville-based private fund and property management firm. Brian Moulder and Dhaval Patel of Walker & Dunlop represented the seller in the transaction. Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.

Passco’s current portfolio in Florida now totals 12 properties.

Irvine, CA-based Passco explains that there has been a large influx of jobs in the leisure and hospitality industry driven by tourism to the ‘Emerald Coast,’ known for its white sand beaches and emerald green waters, which attracts approximately 4.5 million visitors each 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, VP 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.”

The new owner plans to implement value-add upgrades at the property, including minor renovations to refresh and modernize interiors and the addition of in-unit washer/dryers. Gillis also notes that the property features the largest floor plans in the submarket, including a rare four-bedroom option.

The property is located near a number of shopping, dining, and entertainment options, including a Whole Foods Market, Bass Pro Shops, Belk, H&M, Chipotle, and 14-screen AMC Theatre at Destin Commons.

“Legacy on the Bay presents a unique, high-yield investment opportunity due to its location less than a mile from some of the most desirable beaches in the country, and two miles from the thriving Destin Commons, a premier lifestyle center offering residents shopping, dining, and entertainment,” says Walker & Dunlop’s Moulder. “This will remain a strong overall investment as it matures. It was a pleasure to work with Passco’s dependable team once again on this transaction.”

Legacy’s units include screened balconies and patios, stainless steel appliances, deep kitchen sinks with upgraded spray hoses, custom cabinetry, refrigerators, dishwashers, built-in shelving, walk-in closets, ceramic-tiled foyers, security alarms, air conditioning and ceiling fans with brush nickel accents.

Community amenities include a resort-inspired swimming pool, a 24-hour fitness center, a tennis and basketball court, a clubhouse, a business center, laundry facilities, garage and carport parking options, a community playground and a dog park.