Passco pays $53.3M for West Melbourne rental complex

California-based Passco Companies bought a 336-unit rental apartment property in West Melbourne for $53.3 million, or about $157,000 per unit.

Privately held Passco cited population and employment growth in Florida’s Space Coast region as motives for its purchase of The Haven at West Melbourne, the company’s second property acquisition in the region in the last six months.

“The Space Coast is home to America’s space and aeronautical industries and is quickly becoming the top destination for STEM [science, technology, engineering and math] jobs in all of Florida,” Colin Gillis, vice president of acquisitions in the Southeast for Passco. “For example, top employers such as Harris Corporation, Northrop Grumman, and Lockheed Martin are all located within seven miles of the property.”

The Haven, located at 4550 Explorer Drive in West Melbourne, has a 95 percent occupancy rate. The property’s amenities include a resort-inspired swimming pool and sun deck, business center, sand volleyball court, children’s park and yoga center.

Passco plans to improve the property by remodeling its clubhouse, building abanas and an outdoor kitchen, enhancing the fitness center with new equipment, upgrading the landscaping, and installing new toilets and shower heads that consume less water.

Jay Ballard and Ken Delvillar of Cushman & Wakefield’s Orlando Capital Markets Multifamily Advisory Group represented the seller, Flournoy Companies.

Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing for Passco through Fannie Mae.