RADCO Cos. Sells Atlanta Community
During the firm's six years of ownership, Ashford 2788 underwent a full capital improvement program.
Real estate developer The RADCO Cos. has sold its Atlanta apartment property Ashford 2788 to Quintus for approximately $49.5 million. A Cushman & Wakefield team of Robert Stickel, Mike Kemether, Travis Presnell and Alex Brown represented the seller in the transaction.
The 297-unit apartment property in Atlanta’s Upper Westside enclave was previously acquired by RADCO in 2014. The company undertook a substantial capital improvement program intended to upgrade the Class-B community. That effort entailed the addition of a new clubhouse, fitness center and dog park. Also included in the program were exterior and interior renovations of the distinctive townhome-style residences of Ashford 2788.
What made this the right time to sell the asset? “We had a five-year hold strategy,” Norman Radow, CEO of The RADCO Cos., told Multi-Housing News. “However, the property performed so well, and our investment helped spur development throughout the neighborhood, literally transforming it, that we held it 18 additional months. Rents had nearly doubled as a result of our efforts, and they were still growing. However, at the end of the day, it was time for a new business plan and new capital.”
Benefiting from the comparatively recent additions of millions of square feet in office and retail space, Atlanta’s Upper Westside neighborhood is a swiftly-growing job and nightlife destination. An enviable location within the district puts Ashford 2788 immediately adjacent to a number of successful dining spots and popular outdoor recreational opportunities.
But the sale itself was not without headwinds for RADCO, Radow recalled.
“We had a ton of challenges,” he reported. “It was the first sale anywhere where the contract negotiations began the day the pandemic was announced. Then, we were under a severe lockdown order and no one could even tour or inspect the property. We spent many a day working with the buyer to create fair and thoughtful protocols to advance the sale, ensuring the buyer would not be penalized if the pandemic created obstacles outside of our control. This transaction required an incredible amount of creativity, cooperation and patience between the buyer, Capital One, Freddie Mac and RADCO.”
Last month, RADCO sold the 372-unit Mabry Manor in Tampa, Fla.