RADCO Sells 7 Properties for $316M
The firm sold the apartment communities in four separate deals, all closing on the same day.
The RADCO Cos. has sold several properties in its portfolio in the South for a total of $315.5 million. In four separate transactions that closed on the same day, the multifamily investment firm sold seven apartment communities in two states with a total of 1,941 units combined.
RADCO CEO Norman Radow called the seven properties “successes” for the company in prepared remarks. Since it’s founding, the firm’s business strategy has involved investing in and redeveloping communities across the Southeast and Midwest. RADCO has a current portfolio of approximately 16,600 units across the U.S.
Six of the properties sold are located in Georgia while one property is in North Carolina. RADCO sold the 264-unit Magnolia Terrace community in Charlotte, N.C. to Stonebridge Investments for $40.7 million. The property’s units were renovated and resident amenities include a pool, sundeck, fitness center, dog park and playground.
The other deals closed by RADCO include:
- The 302-unit apartment community Winterset at East Cobb in Marietta, Ga. The property sold for $52.8 million to Advenir Real Estate.
- Three communities in Kennesaw, Ga., sold to Greystar for a total of $138.7 million. The properties include the 255-unit Ashford Ridenour, the 296-unit Bridges of Kennesaw, and the 240-unit The Landing at Acworth.
- Two Atlanta-area communities sold to Lion Real Estate Group for $83.2 million. The properties include Ashford 6860, a 260-unit property in Norcross, Ga., and 2800 at Sweetwater, a 324-unit property in Lawrenceville, Ga.
Earlier this summer, RADCO sold a 297-unit apartment community in Atlanta, Ashford 2788, to real estate firm Quintus for $49.5 million. RADCO previously acquired the property in 2014 and undertook a significant capital improvement program to upgrade the Class B community.
In early 2019, Radow told Multi-Housing News that the influx of Class B purchases had “drastically” changed the way his firm did business in the multifamily industry.
“Simply put, more capital is being raised than there are Class B deals to invest in, which results in the compression of cap rates despite LIBOR and Treasury rates increasing,” said Radow.