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Passco/Greystone Joint Venture Acquires $124 Million Tennessee Property for DST Offering

Passco/Greystone Joint Venture Acquire $124 Million Tennessee Property for DST Offering. Alternative investments, commercial real estate, Delaware statutory trust, DST, multifamily, Passco, Passco Companies, real estate
Passco/Greystone Joint Venture Acquire $124 Million Tennessee Property for DST Offering. Alternative investments, commercial real estate, Delaware statutory trust, DST, multifamily, Passco, Passco Companies, real estate

Passco Companies LLC, a sponsor of Delaware statutory trust offerings and other alternative investments, in conjunction with its joint venture partner, Greystone, a national commercial real estate finance and investment company, has acquired One Riverwalk, a 303-unit luxury apartment community completed in 2019 located at 151 E. Blount Ave. in Knoxville, Tennessee.

The 97% occupied community was purchased for $124.1 million, according to county records and reported by the local ABC-TV news affiliate. The property was acquired on behalf of Passco One Riverwalk DST, a Reg. D 506(c) private placement offering launched earlier this month that seeks to raise up to $74.7 million from accredited investors.

The purchase was subject to the assumption of a 10-year, $64.29 million Freddie Mac loan bearing a 3.12% fixed rate with over three years interest-only periods remaining.

Passco was reportedly attracted to the opportunity to expand their holdings in the Knoxville market and has “experienced tremendous success from their performance of their other two multifamily assets in the market, Tapestry Turkey Creek and Trustwell Living of West Knoxville.”

“One Riverwalk has exhibited phenomenal performance metrics since reaching stabilization in 2020 which underscores how special the asset and location are,” said Colin Gillis, senior vice president of acquisitions at Passco. “Apartment fundamentals within the Knoxville MSA are some of the strongest in the country and have remained consistently robust in a time where there has been significant softness across the rental sector nationally.”

The waterfront property sits upon 3.35 acres and is comprised of two five-story residential buildings offering a mix of studio, one- and two-bedroom units averaging 884 square feet. Each unit is “modern” with quartz countertops, faux wood flooring, tile backsplash, stainless steel appliances, full lighting packages and views of the Tennessee River.

Headquartered in Irvine, California, Passco Companies is a full-service real estate company that acquires, develops, and manages multifamily and commercial properties throughout the U.S. Passco currently has $3.9 billion assets under management.

For more Passco Companies news, please visit their directory page.