Passco Marisol is an investment into a 282 unit Class A garden style multifamily apartment complex located in Viera, Florida. The property was built in 2016 and is located about 50 miles Southeast of Orlando.
- Year 1 Cash Flow 5.50%
- Initial Occupancy 92.55%
- Est. Time Horizon None
- Yr 1. Cap Rate to Investors 5.30%
- Investor Purchase Price $57,687,000
- Total Offering Size $25,025,000
The loan totals $32,662,000 and is from KeyBank National Association under the Fannie Mae DUS program. The loan is for a total of 10 years with the first 5 years being interest only. When amortization begins it is on a 30 year schedule. The interest rate is fixed at 4.40%.
- Yr. 1 DSCR 2.02
- Loan-to-Value 56.62%
- Hold Period DSCR 1.92
Marisol is the newest property in the local market. There is one other property that is in development and it is located about 1 mile north of the subject. The subject was able to reach 95% occupancy in about 7 months.
The sponsor has used conservative underwriting assumptions with rent growing at about 2.5% each year.
The area has decent population and income numbers. In the 5-mile radius, there are over 60,000 people and this number is projected to grow at 1.43% each year for the next 5 years.
The new development that is occurring in the area may affect occupancy at the property and cause competition that will lower rental rates.
The local population is dependent on government and tourism. Should there be a market downturn that affects travel or cause government to decrease spending it may affect the revenues that are earned in the area.
According to the sponsor's website: "Since 1998, Passco Companies, LLC has operated throughout all market conditions and cycles. The company has acquired over $4 billion in multifamily and commercial real estate in the United States. Since its inception, Passco Companies has become a recognized provider of investment opportunities in real estate projects.
Passco Companies is directed by a team of dedicated senior real estate professionals whose experience in the business averages 34 years, and who, collectively, have acquired over $30 billion in investment real estate projects."