SANTA ANA, CA-Passco Real Estate Enterprises Inc., a leading sponsor of the tenant in common transactions that have gained immense popularity of late, plans to invest $175 million in equity in the coming year, according to William Winn, Passco’s chief operating officer.

Passco estimates the $175 million in equity will translate to real estate investment with a value of approximately $450 million, based on typical ratios of equity and debt in today’s deals.Passco has already assembled a portfolio of six million sf of commercial properties valued at $675 million. Winn says the company’s prospective new investments will include regional malls, power centers and grocery anchored centers throughout the western and southwestern US, and Hawaii; multi-tenant industrial properties with five or more tenants; and multifamily properties consisting of 100 or more units in the Western and southwestern US.

Passco last year sponsored one of the largest tenant in common transactions ever executed, the $148-million purchase of the Puente Hills Mall in the City of Industry, part of $275 million in 2003 acquisitions for the firm. Although most of the investors in the property were 1031 Exchange buyers seeking replacement properties, as is the case with many if not most TIC deals, the transaction also included a substantial sum from investors who were not seeking a 1031 replacement property.

Passco was established nearly six years ago. Its existing portfolio includes regional malls, grocery-anchored neighborhood centers, power centers and multi-tenant industrial properties.

Among the investment opportunities the firm foresees are mature retail centers in areas that are undergoing demographic change, according to Winn, who says such centers “present the opportunity for a well-capitalized investor to reposition and modernize these properties for a new generation of retailers and customers.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.