Radco Acquires 1,400 Units in Suburban Indianapolis
A major private capital player, the company financed the acquisition using its private capital platform, as well as debt furnished by BBVA Compass.
The Radco Cos. has completed its first four acquisitions of 2018 with the closing of a portfolio of properties in the northwest suburbs of Indianapolis, near Meridian Hills and Williams Creek. The 1,426-unit, Class C and B-minus portfolio has been reorganized into three properties renamed Ashford Georgetown, Ashford Meridian Hills and Creekside at Meridian Hills.
With vintages from 1968 to 1972, the portfolio spans 147.1 acres and consists of 96 two- and three-story buildings. Averaging 944 square feet, the garden-style apartments offer a range of one-, two- and three-bedroom floorplans. Common amenities include swimming pools, clubhouses, playgrounds, laundry centers and sport courts.
Radco financed the acquisition using its private capital platform, as well as debt furnished by BBVA Compass. Since 2011, the company has raised approximately $650 million in private capital to fund its acquisitions, making it one of the largest private capital companies of its type in the nation. Including this latest deal, Radco has acquired 78 properties since 2011.
The buyer plans to spend more than $27 million, or about $19,150 per unit, on capital improvements to renovate the portfolio. Improvements will include significant building repairs; new roofs, siding and window replacements; upgraded landscaping; HVAC repairs; major lighting upgrades; new amenities; and unit renovations.
“Ashford Georgetown, Ashford Meridian Hills and Creekside at Meridian Hills were undermanaged and physically untouched communities that had never implemented a true value-added or mark-to-market strategy,” said Norman Radow, founder & CEO of Radco.