Passco Parkcrest is an investment into a Class A multifamily apartment complex located in Bradenton, Florida. Bradenton is about 40 miles south of Tampa. The property consists of a total of 400 units and was built in 2015.
- Year 1 Cash Flow 5.50%
- Initial Occupancy 88.50%
- Est. Time Horizon None
- Yr 1. Cap Rate to Investors 4.94%
- Investor Purchase Price $85,200,000
- Total Offering Size $36,450,000
The total loan is for $48,750,000 and is from Fannie Mae. The term is for a total of 10 years with the first 5 years being interest only. When amortization begins it will be based on a 30 year schedule. The interest rate is fixed at a rate of 3.55%.
- Yr. 1 DSCR 2.34
- Loan-to-Value 57.22%
- Hold Period DSCR 2.11
Due to the property being recently built, there is less likelihood that the property will need capital expenditures to maintain the property.
The population growth in the local area is very favorable with positive growth anticipated in the 1,3, and 5 mile radius. This growth is projected to outpace the national average and is expected to be 2.42% in the 1 mile radius.
The Bradenton economy is reliant upon tourism and leisurely activity which makes it highly cyclical. Should there be a downturn in the economy and travel spending decreases in the area the subject property may be affected unfavorably.
The cap rate to investors is low (4.94%).
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."