The Real Deal Miami

Mast Capital and Rockpoint sell Key West apartments to Passco Cos. for $102M

Irvine, California-based Passco Companies paid $342k per unit

Aerial view of Ocean Walk and Mast Capital’s founder and CEO Camilo Miguel

Mast Captal and Rockpoint Group sold a Key West apartment complex to Passco Companies for $101.5 million, 35 percent more than what they paid in 2014, they told The Real Deal.

The Miami-based investment firm and Boston-based private equity firm sold the 297-unit Ocean Walk Apartments for about $342,000 per unit. ARA Newmark’s Hampton Beebe, Avery Klann and Jon Senn brokered the sale.

Property records show the joint venture paid $75.35 million for the four-building complex in 2014. Ocean Walk, at 3900 South Roosevelt Boulevard, was built in 1989 and sits on more than 17 acres. It’s one of the three institutional-level rental properties in the Keys.

Mast Capital and Rockpoint renovated the units with new cabinets, finishes, stainless steel appliances and plank flooring. Amenities include a swimming pool, basketball court, tennis court and a jogging trail. The joint venture secured a $70 million loan for the complex last year, financing that was partially used to retire about $50 million of debt used to buy the complex three years ago.

Last year, rents at Ocean Walk ranged from $1,775 for a 500-square-foot one-bedroom to $2,825 for a 1,048-square-foot three-bedroom.

The buyer, Passco Companies, is a real estate investment firm based in Irvine, California. In Florida, it owns Azure Luxury Apartments in St. Petersburg and Marisol at Viera in Melbourne, according to Passco’s website.

In April, Mast Capital and Rockpoint sold the West Isle Club Apartments, also in Key West, to Priderock Capital Partners for $56.8 million or $296,000 per apartment. That sale was a 44 percent gain before renovation expenses.