Exclusive: Apartments in Pasco County sell for $76 million
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Nov 9, 2020

A newly built, garden-style apartment property in East Pasco County has sold to a California buyer for $76 million.

Irvine, California-based Passco Cos. says it has purchased Tapestry Cypress Creek in Land O'Lakes. The developer, Birmingham, Alabama-based Arlington Properties, has built Tapestry-branded apartments across the Southeast over the last decade. Tapestry Cypress Creek wrapped up construction in 2019, according to county property records.

With 341 units, the sale price breaks down to $224,046 per apartment. The property is adjacent to the 2 million-square-foot Cypress Creek Town Center, a mixed-use development that includes shops and restaurants.

Passco owns 11 properties in Florida; in 2019, it sold off Provenza at St. Petersburg, which is in the city's Carillon area, for more than $70 million.

Arlington will continue to manage the property. Passco says it has a long-standing relationship with Arlington; the firm manages 1,100 of the units in Passco's portfolio.

“Passco has long been focused on identifying well-located, high-performing multifamily assets in the greater Tampa area, a geographically diverse region where we’ve experienced immense success,” Colin Gillis, vice president of acquisitions, said in a statement. “We’re delighted to complete our first acquisition in Pasco County, a high-growth submarket located within a 20-minute drive of downtown Tampa.”

Gillis also said that Passco believes "that continued migration to the area and significant barriers to entry, due to Pasco County’s wetlands and high development impact fees, will continue to drive rental demand.”

Newmark Group’s Vice Chairman Patrick Dufour, Directors Ryan Crowley and Andrew Visnick, and Associate Pibu Aulakh represented the seller in this transaction.

Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing.

"Rather than a broad marketing campaign, we targeted a strong set of buyers to approach on a direct basis on behalf of the seller," Dufour said in a statement. "Passco owns several similar assets within the region and has an existing relationship with the seller. It was a very smooth, quick closing for all parties.”