California investor Passco acquires third Triangle apartment complex

04/07/2014 3:21 PM

04/07/2014 3:22 PM

A California investor has acquired its third apartment community in the Triangle within the past nine months.

Irvine-based Passco Companies paid $37.3 million for Carrington at Brier Creek, a 270-unit complex that was built in 2004. The seller was The Conner Group, an Ohio-based company that acquired the community in October 2007 for $34.9 million.

Passco’s other recent acquisitions include Encore at the Park in Durham, a 280-unit complex that the company bought for $28 million in July 2013; and Wakefield Glen Apartments, a 246-unit community in Raleigh that Passco acquired for $31 million from The Conner Group.

Apartment investors continue to pour money into the Triangle even as the market braces for a wave of new units to come on the market.

The Triangle apartment occupancy rate was 93.9 percent in the first quarter, down a percentage point from the same period a year ago, and the lowest the rate has been since the first quarter of 2011, according to MPF Research.

The cooling in the market has been widespread. Three quarters ago, occupancy rates were above 95 percent in eight of the 11 Triangle submarkets that MPF tracks. As of the first quarter, only one submarket – Southwest Durham near Research Triangle Park – could make that claim with an occupancy rate of 95.2 percent.

Staff writer David Bracken

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