RADCO Sells Ashford Oaks, Ashford Town & Country in Atlanta
- Mar 23, 2016
Atlanta–Real estate acquisition and development company The RADCO Cos. sold two Class B multifamily properties totaling 392 units, located south of Atlanta in Union City and Fairburn, Ga. The communities, Ashford Oaks and Ashford Town & Country, were purchased by an Atlanta investment company in a $23.4 million deal that was brokered by Berkadia.
RADCO purchased the 260-unit Ashford Oaks in December 2011 for $7 million from GE Capital – REO and the 132-unit Ashford Town & Country in November 2012 for $2.11 million from Praedium Group. The assets were among the first properties RADCO acquired after implementing its B-class value-add strategy in 2011. With this combined sale, RADCO registered more than $14 million in profit.
The two-story, 33.98-acre Ashford Oaks community is comprised of spacious two-, three-, and four-bedroom apartment homes and townhomes ranging in size from 1,016 to 1,445 square feet. Community amenities include a swimming pool, stand-alone rental office, outside storage and 95 parking spaces. As of February 2016, the occupancy rate of the property was 97.7 percent and the average rent $839, according to data collected by Yardi Matrix.
Situated on 7.44 acres, the two-story, 15-building Ashford Town & Country community offers two-bedroom townhome-style floor plans with amenities such as vaulted ceilings and above-standard ceiling heights. The community also features 200 parking spaces, a swimming pool and stand-alone rental office. According to Yardi Matrix, a 1,210-square-foot apartment is $850 per month.
After the acquisitions in 2011 and 2012, RADCO refurbished the property interiors and exteriors, and raised rents to properly reflect their improved condition. RADCO invested significantly in a wide variety of property improvements and enhancements, including building exterior renovations, windows, roofs, extensive lighting upgrades, security enhancements and life safety investments. Interior unit upgrades and community amenity additions were also made, and as a result, occupancy and rent levels increased at both communities. Since April 2015, the properties have been managed by RADCO Residential, the property management branch of RADCO.
“I take pride in what we did at Ashford Oaks and Town & Country,” said Norman Radow, founder and CEO of RADCO in a prepared statement. “We did exceptionally well financially, but we did so by giving back to the community – restoring housing stock and creating a safe and nurturing environment for our residents and surrounding communities.”
The original business plans for Ashford Oaks and Ashford Town & Country were intended for a three to four-year hold, but the opportunity to sell came at the ideal time in the properties’ cycles.
Atlanta-based RADCO continues to expand in the South, with acquisitions such as Lakes of Palm Harbor, a 292-unit Class B property purchased for $33.5 million at the end of 2015 in Palm Harbor, Fla., as well as three property acquisitions in 2016, with two more scheduled to close in June.
Photos courtesy of Yardi Matrix