Analysis of Investments

Marisol

PASSCO

Passco Marisol is an investment into a 282 unit Class A garden style multifamily apartment complex located in Viera, Florida. The property was built in 2016 and is located about 50 miles Southeast of Orlando.

Investment Highlights

  • Yr. 1 Cash-on-Cash 5.50%
  • Initial Occupancy 92.55%
  • Est. Time Horizon None YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 5.30%
  • Investor Purchase Price $57,687,000
  • Total Offering Size $25,025,000

Loan Information

The loan totals $32,662,000 and is from KeyBank National Association under the Fannie Mae DUS program. The loan is for a total of 10 years with the first 5 years being interest only. When amortization begins it is on a 30 year schedule. The interest rate is fixed at 4.40%.

  • Yr. 1 DSCR 2.02
  • Loan-to-Offering 56.62%
  • Hold Period DSCR 1.92

Tenant Information & Lease Terms

Leases are signed on an individual basis at multifamily properties. The property manager will negotiate terms on a case by case basis. Leases are generally signed on a 12 month basis; however, this may differ for each tenant. At this property the tenant is responsible for water, gas, electricity, and trash service.

Key Positives

  • Marisol is the newest property in the local market. There is one other property that is in development and it is located about 1 mile north of the subject. The subject was able to reach 95% occupancy in about 7 months.

  • The sponsor has used conservative underwriting assumptions with rent growing at about 2.5% each year.

  • The area has decent population and income numbers. In the 5-mile radius, there are over 60,000 people and this number is projected to grow at 1.43% each year for the next 5 years.

Key Risks to Consider

  • The new development that is occurring in the area may affect occupancy at the property and cause competition that will lower rental rates.

  • The local population is dependent on government and tourism. Should there be a market downturn that affects travel or cause government to decrease spending it may affect the revenues that are earned in the area.

Investment Sponsor Information

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."

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