Passco Cos. Acquires $78M Multifamily Asset

BLUFFTON, SC – GlobeSt.com exclusively reports that the privately-held commercial real estate company, Passco Cos. has acquired a 330-unit, class A multifamily in Bluffton, SC for $78 million.

The California-based company purchased the asset, One Hampton Lake, from Southeastern Co. in an off-market transaction.

Passco Cos., whom holds an established relationship with the seller, directly sourced the asset and competed the transaction with Southeastern Co.

“We were fortunate to be able to acquire One Hampton Lake from Southeastern Company, after previously purchasing Grand Oaks at Crane Creek in Augusta, Georgia, from the firm last year,” states Colin Gillis, Passco Cos. VP of acquisitions. “Our familiarity and strong relationship with the seller were crucial to us being selected to work on this deal and being able to complete transaction from start-to-finish within 45 days, despite limitations resulting from the pandemic and social distancing orders. We are optimistic that we will see more opportunities going forward to acquire exceptional assets in secondary and tertiary suburban markets that have proven resilient through this time.”

Situated on 35 acres of land at 11 Parklands Dr., One Hampton Lake offers one-, two- and three-bedroom floorplans. The residential community’s units feature quartz countertops, stainless steel appliances, washers and dryers, ground floor screened-in private patios and second and third floor screened-in balconies. 75% of the property’s units offer views of Hampton Lake.

On-site amenities at the garden-style community include a resort-style infinity pool, a boardwalk deck, kayak launch and storage, a pet park and wash station, a state-of-the-art fitness center, a screened-in lounge with a fireplace, an outdoor kitchen, picnic tables and grilling areas.

Originally built in 2018, the apartment community completed a Phase II expansion this year.

The community has maintained high occupancy and leasing momentum throughout the pandemic; with tenants averaging a household income of $115,000.

“While these past several months have involved unprecedented considerations, interruptions and increased scrutiny when sourcing new acquisitions, we’ve continued to seek out opportunities to add top-of-the-market multifamily assets in irreplaceable locations to our portfolio,” says Gillis. “One Hampton Lake, which sits on a large, picturesque, lake within a highly affluent neighborhood, exemplifies this strategy. The quality of the property is unmatched and the site cannot be replicated.”

Greystar will continue to serve as the community’s property manager.

KeyBank Real Estate Capital’s Commercial Mortgage Group’s Chris Black and Caleb Marten arranged the acquisition financing on behalf of Passco Cos.

Through the recent acquisition, Passco Cos. aims to capitalize on the city’s growing population and influx in retirees. The region experiences

“Bluffton is located between Interstate 95 and Hilton Head Island and is also within convenient commuting distance of both Beaufort and Savannah, GA,” says Gillis. “The Hilton Head-Bluffton-Beaufort MSA’s economic growth has easily outperformed the nation in recent years and is well positioned to continue in this direction. The region benefits from multiple economic drivers, including booming tourism and healthcare industries, the Port of Savannah, Parris Island and other major area employers including Gulfstream and Wayfair.”