Passco Closes on Luxury Ponte Vedra Apartment

POINT VEDRA, FL—Passco Cos., a privately held California-based commercial real estate company, has acquired The Reserve at Nocatee, a 244-unit luxury multifamily community in Ponte Vedra, Florida, for $54.9 million.

Passco officials tell GlobeSt.com that the deal closed on March 17. The seller was not disclosed. The firm says it plans on remaining active in Florida and hopes to target additional projects in St. Johns County in the future.

The Reserve at Nocatee is the first multifamily community with a Ponte Vedra address to be built since 1988. This acquisition brings the firm’s current Florida portfolio to a total of 3,650 units, according to Colin Gillis, VP of acquisitions, East at Passco Cos.

“When sourcing acquisitions, we have an extensive list of factors we evaluate, including ongoing and projected employment and population growth, school system quality, educational attainment within the area, housing values, and household incomes,” says Gillis. “This asset, ideally located at the heart of the booming master-planned Nocatee community in Ponte Vedra, the second fastest growing suburb in America, exceeds these criteria points on all counts.”

Gillis notes that Ponte Vedra is located 25 miles southeast of Jacksonville just over the Duval County line in St. John’s County, which has some of the highest financial barriers to entry in the entire state of Florida. Developers have often spent upwards of $40,000 per unit prior to completing site work due to high utility impact and school concurrency fees, which is keeping the future St. Johns County multifamily pipeline relatively limited, further driving the value of this rare acquisition opportunity.

“Ponte Vedra is in unincorporated St. Johns County, which is not only one of the most affluent areas in the state, but among the top 10 fastest growing counties in the country,” Gillis said.