RADCO Expands in Georgia with $54M Buy
The firm acquired a 232-unit luxury community in Atlanta's Loring Heights neighborhood.
Radius West Midtown. Image courtesy of The RADCO Cos.
The RADCO Cos. notched its third acquisition of 2019 with the purchase of a 232-unit luxury community in Atlanta, Ga., for $54.2 million. The seller was Newport Development, according to data from Yardi Matrix.
The acquisition was financed with private capital debt provided by PGIM, according to RADCO. The deal follows the company’s previous acquisition of a 167-unit community in Stockbridge, Ga., in June and the purchase of a 189-unit community in Tampa Bay earlier this month.
Formerly known as 464 Bishop Apartments and rebranded by RADCO as Radius West Midtown, the Class A community is situated within the West Midtown area of Atlanta, which has become a magnet for tech companies in recent years. The location is also within walking distance of Atlantic Station, a short drive to Georgia Tech University and within 3 miles of Piedmont Park.
Built in 2017, Radius West Midtown sits on three acres and houses a mix of studio, one- and two-bedroom units with an average size of 846 square feet. The five-story property offers amenities including a clubhouse with a media and business center, saltwater swimming pool, fitness center, pet spa, 24/7 package concierge system and a rooftop lounge.
Southeast game plan
Norman Radow, CEO of RADCO, told Multi-Housing News that while opportunistic acquisitions are hard to find in today’s multifamily market, his firm wouldn’t rule out another buy in 2019.
“In fact, we are adding more firepower to our acquisitions team,” said Radow. “Still, opportunistic situations are challenging to find today. We want to acquire more Bishops, but the jury is still out whether we can achieve that this late into 2019. However, I am sure we will see more acquisitions activity in 2020.”
RADCO’s leader said his firm will continue to target the Southeast market, an area where the firm has made several acquisitions in recent years. The strong population growth and need for housing have continued to attract the company’s interest.
“Whether it’s in Atlanta, which will add 50,000 to 100,000 people per year over the next thirty years, or Tampa and Orlando, which are also growing quickly, housing is falling behind that growth,” said Radow. “Southeast states offer low taxes, cheaper labor as they are right-to-work states, and sincerely want to help businesses grow in their states.”
