Irvine, Calif.-based Passco Companies LLC has purchased The Arlington at Eastern Shore for nearly $42.975 million.
The 300-unit multifamily development in Spanish Fort was acquired using Fannie Mae financing, Gary Goodman, Passco’s senior vice president of acquisitions, said in a prepared statement.
“With increasing population and job growth anticipated in the region, this property is poised for ongoing strong performance, and we are pleased to be able to provide such a concrete asset to our investors,” Goodman said, noting the property has maintained an average occupancy rate of 96.5 percent during the past two years.
The deal was facilitated by Rock Apartment Advisors, a Birmingham-based multifamily brokerage team, whose managing director, Bo Flurry, called The Arlington at Eastern Shore “a premier asset in the market, as it offers the best combination of location and quality in the Mobile MSA.”
Moreover, Goodman said he sees continued growth in the area.
“The coastal location of the greater Mobile metro area has always made this region prosperous. Based on this location, as well as the strength of Baldwin County, which continues to demonstrate a growing job market, top rated schools, and strong population growth, the region is extremely attractive for property investment,” Goodman said.
Specifically, Goodman pointed to Mobile’s third-place ranking on Forbes magazine’s 2014 “industrial boomtowns” list for mid-sized cities.
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In addition to population growth, Goodman pointed to the Port of Mobile’ssubstantial investments in recent years in anticipation of increased traffic due to the widened Panama Canal; Airbus’ soon-to-enter-production $600 million A320 family aircraft final assembly line, the planemaker’s first on U.S. soil; and shipbuilder Austal USA’s 10-ship contract with the U.S. Navy, requiring aworkforce of more than 4,000.
“This tremendous job growth in the region will continue to fuel renter demand for years to come,” Goodman said, adding, “Further, there are no new multifamily projects currently being developed in the area, which will result in stellar occupancy rates and the potential for strong future yields for our investors.”
Located at 10558 Eastern Shore Blvd., The Arlington at Eastern Shore was built in 2009.
Goodman confirmed planned improvements for the rental units include the installation of wood-like flooring in each of the 132 ground-floor units, as well as the addition of a dog park and new exterior paint.
With a portfolio that includes retail, multifamily, office and industrial properties nationwide, Passco is currently involved with 60 properties in 18 states and has in its 15-year history acquired, managed and/or developed properties totaling more than $3 billion.