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Asheville Exchange

PASSCO

Investment Highlights

Overview

The offering will purchase a Class A multifamily complex in Asheville, North Carolina. Developed in 2018, the 312-unit property has high-quality amenities. The Sponsor has plans to improve property management to organically increase rents. 

  • Year 1 Cash Flow 5.00%
  • Initial Occupancy 94.87%
  • Est. Time Horizon None
  • Yr 1. Cap Rate to Investors 5.36%
  • Investor Purchase Price $65,029,000
  • Total Offering Size $28,325,000

Loan Information

The loan is on a ten-year term (fiver-years are Interest-Only) on a thirty-year amortization schedule. Prepayment of the loan can be paid in full at any time, with these conditions: - If paid in the first nine-years and six-months: a penalty of the yield maintenance premium - If paid after nine-years and six-months, but before nine-years and ten-months: a penalty of 1% of the loan's outstanding principal. - If paid after nine-years and nine-months: no penalty for prepayment.

  • Yr. 1 DSCR 1.89
  • Loan-to-Value 56.44%
  • Hold Period DSCR 1.78

Key Benefits

Asheville’s already strong demographic outlook is increasing faster the national average for population and income.

The Sponsor has provided conservative estimates likely to be outperformed: A low projection of 87.646% for economic occupancy while the surrounding market occupancy is at 95%, and a reduction in Effective Gross Rent for year’s one and two.

Key Risks

Low investor capitalization rate of 5.36% for investors in a Class A property

About PASSCO

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."