Real Estate Manager Acquires Two Multifamily Properties
Radco Cos., a real estate asset manager and consultant, has acquired multiple bank-owned multifamily developments in its hometown Atlanta.
Bank of North Georgia supplied the financing for the transactions, which were obtained through a closed fund that was oversubscribed and raised in less than 10 days. The company will utilize private markets and institutionalize equity funds to obtain additional assets.
The assets were offered to Radco at a significant discount to the note amount and the company said that the properties have great turnaround potential because they are located in areas that have market improvement.
The first asset, Somerpoint, is a 144-unit development that has been in receivership since December 2010 on behalf of a special servicer. This property is located in northern Atlanta.
Flynt Ridge is the second asset acquired by Radco Companies located in southern Atlanta. Radco plans to increase occupancy and rents through hands-on asset management, upgrades and repositioning the development of the 77 two-bedroom townhome units.
“Since 2006, we have focused exclusively on putting our development and operating expertise to work for clients who were struggling to build value in challenging markets and we have built-out a perfect machine to manage every aspect of a troubled asset's lifecycle—whether completing construction, settling or prosecuting litigation, selling residences or the properties themselves,” said Norman Radow, CEO of Radco. “With these two acquisitions, we have the opportunity to become our own client, bringing properties under the Radco umbrella of services for comprehensive turnaround and building value.”
Radow said more lender-owned assets and notes are being offered for sale, creating opportunities for buyers with cash.
“We are on the front lines of this process, and have a unique access to the REO and note sales and the talent it takes to make the deals work,” Radow said. “In the case of these two deals, we know the lenders, the market, the properties and we have a ready plan in place to manage the turnaround and value enhancement for each of them.”