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Wednesday, May 11, 2022

Aggressive

Out of state investment firm becomes absentee landlord to local apartment building.  You won't believe what happens next

Passco Companies, of Irvine, California, said it bought the 330-unit complex and its 500-space parking lot — which is now known as Canal 1535 — primarily because of its proximity to the burgeoning biomedical district in that part of the city.

"We found it to be a great market for job growth and migration with all the education and healthcare employers moving in," said Stacy Stemens, a senior vice president at Passco. "That's who's renting there and the rents are aggressive."

Units in the nine-story building average just over 900 square feet and rents have shot up amid a nationwide shortage of rental properties.

Stemens said that as leases turn over, rents that were about $1,500 to $3,500 a month are now averaging between $2,500 and $5,500 for the one- and two-bedroom units. In the New Orleans area, rents have increased by 8% in the six months ending in April, contributing to what fair-housing advocates say is an escalating affordable-housing crisis.

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