TODAY’S DEALS: RADCO Acquires 982-Unit Apartment in Atlanta
Atlanta—The RADCO Companies has completed its 22nd apartment acquisition in less than two years with the purchase of The Park at Briarcliff. The 982-unit community was rebranded as Ashford Druid Hills and carried a $39.6 million price tag.
“We are intimately familiar with the Atlanta marketplace and have invested a significant amount of capital into the community,” says Norman Radow, founder and CEO of The RADCO Companies. “In fact, this marks our 17th deal in the Atlanta metropolitan area, our sixth deal in the I-85 Corridor and our third transaction in Dekalb County, which is enjoying an improving job market and has seen rental rates soar 8.6 percent for apartments like those around Druid Hill.”
The community is comprised of 48 brick buildings with 982 one-, two- and three-bedroom units. Amenities include two swimming pools, a fitness center and two tennis courts. RADCO plans to invest an additional $10 million to renovate and improve the asset.
“The story behind this property is unique,” Radow adds. “DeKalb County had originally issued development bonds that were credit enhanced by Fannie Mae. In 2007, the property was foreclosed on by Dekalb County after the borrower defaulted on the bonds, which led Fannie to subsequently foreclose on DeKalb County in May of 2010. The government actually foreclosed on the government! That is why The Park at Briarcliff is the quintessential distressed property. That, coupled with its A plus location, makes this acquisition a huge opportunity for us.”
Trade Street Residential buys Charlotte asset for $34M
Charlotte, N.C.—Southeastern owner and operator Trade Street Residential has added a newly constructed, 208-unit, Class A, TOD property to its portfolio with the acquisition of Fountains Southend. The Charlotte, N.C., property carried a $34 million sales price and closed on September 24.
“We are excited to complete the acquisition of a second luxury apartment community during the month of September,” says Michael Baumann, CEO and chairman of Trade Street Residential. “The addition of the attractive and newly constructed Fountains Southend apartment community further reduces the average age of our portfolio and expands our presence in the North Carolina market.”
Fountains Spearhead has an amenity package that includes a swimming pool and hot tub, fitness center, pet spa, rooftop clubroom and a sky terrace. It was completed in August 2013 and is currently 96 percent leased. The TOD component comes from the asset’s location adjacent to the New Bern station on Charlotte’s new light rail transit system.
Johnson Capital arranges $2.86M acquisition loan
Phoenix—Johnson Capital, a national real estate capital advisory firm, announces that Neal Churney, CCIM and Dave Susank in Johnson Capital’s Phoenix office, have arranged a $2.86 million acquisition loan for a multifamily property in Phoenix.
The property, called Bella Verde, contains 181units and was built in 1978 on four acres located at 3030 N. 35th Avenue in Phoenix.
The acquisition debt was funded by a local bank and provides the client a fixed rate of 3.85 percent with a 30-year amortization schedule. The loan to value ratio is 65 percent.
Commenting on the challenges of this transaction, Churney said, “This financing assisted the client to acquire the asset and implement their investment strategy with a long-term permanent loan with a low financing cost.”