Real estate turnaround specialist The RADCO Companies has completed seven closings in the last two weeks. This increases its portfolio to 3,000 units, with more properties under contract and expected to close soon.
The RADCO Companies, the nation’s leading real estate turnaround specialist, has now returned in earnest as one of the foremost investors in the Atlanta multifamily market. In the past two weeks, RADCO has completed seven closings, increasing its portfolio to 3,000 units, with more properties under contract and expected to close soon. The announcement was made by Norman Radow, President and CEO of The RADCO Companies.
The latest properties include the 132-unit Audubon Town & Country in Fairburn, GA; Audubon Brook, a 94-unit property in Conyers, GA; the 98-unit Audubon Way, which is located next to the Gwinnett County Medical Center in Lawrenceville, GA; adjoining apartment complexes Bella Villas (which consists of 63 townhomes) and Wyntree (a 164-unit traditional apartment-style community) both in Doraville, GA; the 104-unit Meadowbrook Manor in Lilburn, GA; and Park Lake, a 328-unit community in Norcross; GA. The Pavilion at Decatur, which consists of 144 units near Emory University in Decatur, GA, should close shortly. The transactions were financed through bridge debt from several lenders and $15.2 million in equity raised over the past 30 days – all from private sources.
“There is liquidity in multifamily, and the fundamentals make value-add multifamily the perfect fit for us today,” said Mr. Radow. “Our reputation has allowed us to raise equity privately, without resorting to institutional equity. Hence, we have maximum flexibility to buy when and where we believe we can do the most good, and provide excellent returns to those who entrust us with their hard earned capital.”
In the past year alone, RADCO has raised and deployed nearly $32 million of equity. In addition, the firm has closed an impressive 16 purchases in 15 months. Mr. Radow noted, “This strategy is a natural extension of our already powerful turnaround infrastructure.”
One of RADCO’s investment strategies involves the acquisition of underperforming multifamily properties, especially those managed by borrowers with little or no remaining economic interest in the properties or access to additional capital. “The Audubon and Plaster Road portfolios meet our market to market strategy,” said Mr. Radow. “We believe we are acquiring these five properties at a low basis and have good capital improvement, marketing and management plans to restore each to be competitive within their respective markets.”
While RADCO looks for opportunistic multifamily acquisitions, which often include distressed, underperforming properties that require significant capital expenditures and a substantial repositioning effort, “We have been fortunate enough to find opportunities that are a value on day one, with minimum capital required, strong existing cash flow and additional upside potential. Meadowbrook Manor and Park Lake represent those opportunities,” said Mr. Radow. Meadowbrook Manor, which closed on December 7, 2012, sits on over 16 acres, is an all-brick, 1983 construction in a quad configuration located near Indian Trail and I-85. Park Lake, which RADCO acquired on December 11, 2012, is institutionally owned, 96% occupied and located on a major thoroughfare in Atlanta’s coveted Northern arc. “Both properties are stable assets, but they also have mark to market and value-add opportunities,” said Radow.
“The soon-to-be-acquired Pavilion apartment complex in Decatur is compelling because of its location, story and our already proven value-add business plan,” said Mr. Radow. “Located adjacent from a future county park, the renovation of Pavilion will further transform the immediate neighborhood.”
The RADCO Companies is a national real estate development company with extensive experience managing and repositioning well over $4 billion of distressed real estate. The firm, which was founded in 1994, is based in Atlanta and also maintains an office in Los Angeles. Its trademarked mission is “Building Better Living”.
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