A Weekend in the Country - S3-E12
Audio problem: During the scene where the group (including Mr Fricke) are all having breakfast together, Pacey says 'this is for you, Mr Fricke' and hands the B&B critic a plate. A few moments later, when Joey is in the kitchen area talking to Bessie (away from the group in the dining area), the exact same dialogue can be heard from Pacey as background noise to Joey and Bessie's conversation. The laughter and general chatter is also the same, showing that the entire audio was lifted from the breakfast table scene and placed over the kitchen conversation scene.
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.