Crossroads - S2-E2
Continuity mistake: When Joey finds Dawson at Pacey's Pier Party, it is raining heavily. Both Dawson and Joey get soaked and their hair is very wet as they reunite and kiss. At this point, it suddenly stops raining and does not rain again the rest of the time at the pier. But later, when Jen and Abby are talking behind them, both times Dawson and Joey are shown from the rear their hair is noticeably dry, wavy and styled. Later, when Dawson and Joey are talking again before she goes home, their hair is once again very wet and combed flat against their heads. Also, neither Jen or Abby's hair appeared wet at all during the party.
Answer: It's the same apartment Joey had in NYC. Comparing it to the beginning of the Finale; you can tell it's exactly the same location, furnishings, Plasma TV etc. Apparently Chris was only living with her at HER apartment, and now Pacey has taken his place at the end. I guess this implies Pacey successfully started his own restaurant business in NYC as he had dreamed, to be with Joey.