Analysis of Investments



Passco Almeria is an investment into a Class A multifamily apartment complex located in Chandler, Arizona. The property has a total of 389 units and was built in 2015. The property is part of a master planned community that will feature a golf course, retail, and leisurely amenities.

Investment Highlights

  • Yr. 1 Cash-on-Cash 5.00%
  • Initial Occupancy 91.77%
  • Est. Time Horizon None YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 4.51%
  • Investor Purchase Price $90,125,000
  • Total Offering Size $42,875,000

Loan Information

The loan totals $47,250,000 and is from KeyBank National Association under the Fannie Mae DUS program. The loan is for a term of 10 years with the first 5 years being interest only. When amortization begins in year 6 it is based on a 30 year amortization. The interest rate is fixed at a rate of 3.44%.

  • Yr. 1 DSCR 2.41
  • Loan-to-Offering 52.43%
  • Hold Period DSCR 2.27

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.

Key Positives

  • Passco is using conservative underwriting assumptions as far as NOI growth at the property. They are projecting their NOI to only increase 1% above the trailing 3 months that were achieved at the property.

  • The property is in a prime location. The master planned community is only 10 minutes from downtown Chandler. They have a golf course, retail center, commercial and industrial centers, a manmade lake, and high end single family housing as part of the community. 

Key Risks to Consider

  • The Phoenix-Chandler area has the ability to be further developed and a competitive property can be built in close proximity to the subject property. This could hurt occupancy and rental rates in the area.

  • The cap rate to investors is very low (4.51%), especially for the Phoenix area.

Investment Sponsor Information


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."