January 6, 2017

Newly-Built Luxury Apartment Complex Sells for $50M

By Anjali Fluker, Orlando Business Journal

A newly-built luxury apartment complex — the first of its kind built on Florida’s Space Coast in eight years— has a new owner.

Irvine, Calif.-based Passco Cos. spent $50.25 million, or about $178,191 per unit, to buy the Marisol at Viera Class A apartment community at 2439 Casona Lane in the 22,000-acre Viera community. The property, developed by Atlanta-based Pollack Shores Real Estate Group, is adjacent the 600,000-square-foot Avenues Viera lifestyle center, a premier shopping and dining destination in the region.

The property reached a 96 percent occupancy in seven months, often getting more than a company-high of 40 leases in a month, according to a news release.

“This demonstrates remarkable pent-up demand in the area for a luxury multifamily product,” said Colin Gillis, vice president of southeast acquisitions at Passco, in a prepared statement. “The property leased up with no concessions at an average rental rate of $1,400 [per month], which far exceeds the rental rates many of the new Class A suburban apartment developments in the greater Orlando area, just 45 minutes west of Melbourne.”

This is Passco’s first acquisition on the Space Coast, which features several large employers including Harris Corp. (NYSE: HRS), Northrop Grumman Corp. (NYSE: NOC), Health First Inc. and Brevard County Schools.

But the Marisol at Viera isn’t the company’s first Central Florida purchase. The company in April bought The Ivy Residences at Health Village for a record price, as previously reported by Orlando Business Journal.

The Viera complex adds to Passco’s Class A portfolio in the Orlando area.

“Marisol at Viera is the best located and most luxurious multifamily property in the entire Melbourne [metropolitan statistical area],” Gillis said in the statement. “The influx of well-paying jobs has given a tremendous boost to the already strong rental market and has created a very impressive demographic profile at the property, with average resident incomes exceeding $100,000. Home values and schools in Viera are also exceptional, which will assist in maintaining long-term value.”

Read the full article here.