Passco Companies, a privately-held California-based real estate company that specializes in the investment, acquisition, development, and management of commercial properties throughout the U.S., has acquired The Lively at Carolina Forest, a 305-unit, Class A+ multifamily community in Myrtle Beach, South Carolina for $48.2 million.
The addition of this institutional-quality asset to Passco’s portfolio is well-aligned with the firm’s proven strategy to acquire best-in-class multifamily communities in markets demonstrating long-term high-growth fundamentals, according to Colin Gillis, Vice President of Acquisitions, Southeast at Passco.
“Myrtle Beach has shifted over the past several years from a location primarily supporting tourists and seasonal residents to one supporting an influx of full-time residents, significantly driving demand for multifamily housing,” explains Gillis, noting that within the past year, the city was ranked #1 for Future Job Growth by FORBES and the Myrtle Beach MSA was ranked #2 for largest percentage population growth by the U.S. Census Bureau.
According to Gillis, many Baby Boomers are retiring to the traditionally resort town and have a much higher propensity to rent than previously anticipated.
“We’re finding that many of these new residents are retirees, largely from the Northeast, who are downsizing and seeking warmer climates while remaining closer to their family and friends back home than they would be in Florida,” says Gillis. “This significant growth in the senior population is also driving the region’s healthcare industry at numbers projected to be more than twice the national rate over the next decade, creating a need for multifamily housing to support the workforce as well.”
Among Myrtle Beach’s largest employers are the Conway Medical Center and Grand Strand Medical Center. Additionally, the McLeod Seacoast Carolina Forest healthcare campus is currently undergoing a 43-acre, $20 million expansion that will include medical offices, an emergency center, and physical therapy and rehabilitation services, notes Gillis.
“The Lively at Carolina Forest presented the chance to acquire in the early stages of a population and job boom in a city that has not been traditionally overbuilt, and where existing multifamily is seeing elevated occupancy and strong rent growth,” continues Gillis. “Further, this exceptional asset, which underwent a rapid, concession-free lease-up, brings something entirely new to the market. The community is positioned for long-term success due to its quality and superb amenities.”
The first-of-its-kind asset is located within the rapidly-expanding Carolina Forest master planned community, which provides residents with quiet suburban living and walkable amenities, in addition to offering easy access to nearby employment, retail, entertainment options. The submarket also boasts the city’s top-ranked schools, confirms Gillis.
The Lively’s units include a variety of studio, one-, two-, and three-bedroom floorplans with nine- and ten-foot ceilings and feature quartz or granite countertops, Vinyl plank wood or polished concrete flooring, stainless steel appliances, washer/dryer, and walk-in closets.
The community, which was constructed in 2017, also features in-demand amenities including a stand-alone community “beach house” backing up to a several-acre water feature, community gardens, a fire pit gathering area, gas grilling stations, fitness center with kids’ room, car care station, dog park, dog washing station, package concierge service, a saltwater pool, and is the first multifamily community in the market to feature elevators, notes Gillis.
The Lively at Carolina Forest is located at 107 Village Center Boulevard in Myrtle Beach, South Carolina.
The property was acquired from Orange Capital Advisors / CF Evans. Marc Robinson, Jordan McCarley and Tai Cohen, from Cushman & Wakefield represented both the buyer and the seller in this transaction.
Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.
About Passco Companies, LLC
Celebrating our 20th Anniversary in 2018, Passco Companies, LLC is a nationally recognized market leader in the acquisition, development, and management of multifamily and commercial properties throughout the U.S. Passco offers a full set of real estate services including asset and property management, leasing, as well as property development and construction. Headquartered in Irvine, California, Passco currently has $2.5 billion assets under management and is involved with over 50 properties in 17 states. Passco is actively growing its portfolio in primary and secondary markets throughout the nation.