PASSCO COS. LLC
The CEO and founder of Passco Cos., Bill Passo, entered the real estate investment industry with the purchase of a single multifamily property in 1976. Passo
was a true game-changer who was the first to present to the IRS the concept of the
tenant-in-common investment structure. Under his leadership, along with a team
of experts, Passco’s current multifamily portfolio includes approximately 40 properties and 13,000 units nationwide.
While the company was founded 20 years ago with the niche investment
strategy of acquiring retail properties in California, in 2005—sensing the
market climate and recognizing that an economic slump was approaching—
it shifted its focus to multifamily. This redirection not only preserved its
profitability, but it also greatly expanded its national presence and established Passco as a top name in the sector.
Passco’s team has continued to follow that same smart, strategic, and realistic approach to investment in the years since this shift,
remaining highly-focused on the multifamily sector and seeing opportunities where others did not, further driving the strength of
its portfolio. For example, multifamily investors have recently been overwhelmingly chasing yield to secondary and tertiary suburban markets, while this has been Passco’s primary investment strategy for the better part of a decade.
Several years ago, Passco’s experienced team realized that the suburbs were slowly but surely attracting Millennials, and this
would only continue to increase. Knowing that many members of this demographic would not necessarily be able to buy a home in
the near future, but still desired a high quality of living and amenities, the firm began to target best-in-class assets in submarkets
boasting exceptional school systems and experiencing strong population and job growth. The company has also strategically
enacted a 10-year-hold strategy for most of these properties. Its success, in addition to the fact that many investors have followed
suit, solidifies Passco’s place as a true pioneer.
Recently, the firm has been particularly bullish on the Southeast, acquiring approximately $1 billion in multifamily product, totaling
more than 5000 units, in the region within just the last three years. The innovative and constantly-evolving company does not limit
itself. By staying on the pulse of the industry, the company ensures that it does not miss a prime opportunity just because it is outside
of Passco’s niche. For example, the firm is also pursuing value-add multifamily investments and standout opportunities in core markets. And with a total market value already in excess of $2 billion and growing, endless opportunities abound.
POST BROTHERS APARTMENTS
Brothers Matthew and Michael Pestronk are co-founders of Post Brothers
Apartments, a Philadelphia-based developer of luxury rental communities
throughout the Northeast. Their venture established in 2006 and since then they
have built an impressive portfolio valued well in excess of $2 billion.
The momentum created by the Post Brothers’ landmark projects has also fueled
the development of thriving neighborhoods around these residential communities. Presidential City for instance, the 1,000-unit rental community that underwent
a $200 million renovation under Post Brothers, was Philadelphia’s largest residential adaptive reuse project. Its impact on the neighborhood surrounding the
Philadelphia City Avenue corridor—long known as a stretch of office parks—is
evident in the influx of new restaurants, coffee shops and entertainment venues.
Presidential City is typical of the Post Brothers’ approach: revitalizing existing,
outdated assets through massive-scale adaptive reuse construction to produce cash-positive projects. Not that they take a formulaic approach to development. Instead
innovative, creative design tactics unique to each project are used to build a project
that resonates with residents.
Post Brothers also incorporates a variety of sustainable and green features into
their developments. The Goldtex building in Philadelphia, an ultra-lux community sprung from the redevelopment of a former shoe factory in the Center City
loft district, was the city’s first LEED Gold certified residential high-rise. In general
all residences within the company’s portfolio feature Energy Star appliances, 100%
LED light bulbs, new high-efficiency heating and cooling systems, ceiling fans in
every bedroom and living room, double-pane thermal insulated windows, and
heavy insulation. Post Brothers has also used green wind power since 2011.
To handle its operations and execute on its projects, Post Brothers has
structured corporate responsibilities along the following lines. Michael Pestronk is CEO, heading all property development and
operational activities at Post Brothers, while Matthew Pestronk oversees all equity and debt financing, as well as identifying, structuring and executing acquisition opportunities, as president. Property management VP Yvette Stewart-Glimp oversees more than 35
employees across 1,100 units. And development VP Sarina Rose specializes in complex project planning, contractor negotiations
and all aspects of project management for the company.
William O. Passo Larry Sullivan
Matthew Pestronk Michael Pestronk
Sarina Rose Yvette Stewart-Glimp