Irvine, Calif.-based Passco Cos. LLC has paid $51.4 million for The Overlook, a 452-unit apartment community in Antioch.
The complex at 727 Bell Road is the real estate investment firm’s second purchase in that South Nashville area in less than two years. Passco also owns the nearby Cambridge at Hickory Hollow, The Lexington Apartments in Bellevue and Legends at Wolfchase near Memphis among four properties overall statewide with 1,710 apartment units.
“This is the reality of finding a property with good bones, located in a great market, which will give us the ability to drive value both in the short-term and in the long-term,” Colin Gillis, Passco’s vice president of acquisitions for the Southeast, said about its latest acquisition here.
The Overlook is currently 95 percent occupied. Amenities include a fitness center, two pools with cabanas and landscaped grounds.
Passco plans minimal interior upgrades to The Overlook and sees potential for increased value given the current below-market rents. Gillis cites plans by Community Health Systems to bring 1,600 health care-related jobs to a shared services center that the hospital chain plans in Antioch among positive developments in that area.
Passco is pursuing opportunities to acquire more apartments in the Nashville area, he said.
Russ Oldham, a senior vice president with real estate firm CBRE in Nashville, represented both buyer Passco and The Overlook’s seller Olympus Properties in the transaction. Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing for Passco through Fannie Mae.