Deal Marks the Ninth Closing in Three Months for the Nation's Leading Real Estate Turnaround Specialist
GENEVA, Ill., March 4, 2013 /PRNewswire/ — Extending its strategy of acquiring underperforming, well-located multifamily assets with additional value-add potential, The RADCO Companies closed its ninth multifamily purchase in the past three months. The announcement was made by Norman Radow, President and CEO of The RADCO Companies, a national real estate company based in Atlanta, GA. The $27.85-million Brittany Court transaction brings the company's total units under ownership to 3,175.
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Brittany Court was developed in 1989 and is comprised of 226-units located in Geneva, Illinois, an affluent suburb of Chicago. The property, which is being rebranded Ashford at Geneva, is 95 percent occupied, has extensive frontage with excellent visibility and two entrances on Route 38 – a major thoroughfare with a daily traffic count of 26,000 cars.
Ashford at Geneva is immediately adjacent and has direct access to a large park, with an extensive playground, open spaces, jogging trails and picnic areas. The property is also less than two miles from Geneva's downtown shopping and business hub. In addition, Ashford is convenient to the METRA rail line into Chicago and is nearby office jobs in the I-88 corridor. The average annual household income in Geneva is around $100,000 per year and median home prices approach $350,000. RADCO's plan is to significantly upgrade the amenities and unit interiors and thus modernize an already impressive physical plant.
"RADCO continually looks to identify and acquire opportunistic multifamily properties," said Mr. Radow. "Oftentimes, these include distressed, underperforming properties requiring significant capital expenditures and a substantial repositioning effort. However, Ashford at Geneva represents an immediate value opportunity, strong existing cash flow and additional upside potential."
The investment also signifies RADCO's strong commitment to the Chicago market, where the company previously completed the high-end residential towers, Prairie House at Central Station and Residences at Riverbend, two partially and unfinished luxury residential projects that RADCO advantageously repositioned and completed. RADCO also maintained a Chicago office for five years and is intimately familiar with the local market.
RADCO, which also is in contract to acquire an additional Chicago suburban apartment community, has already raised $38 million in private equity to fuel its acquisition platform. "We continue to raise equity," said Mr. Radow, "and expect about $20 million more in the coming few months." NXT supplied a bridge loan to complete the Ashford at Geneva acquisition.
The RADCO Companies is a national real estate development company with extensive experience managing and repositioning well over $4 billion of distressed real estate. The firm, which was founded in 1994, is based in Atlanta and also maintains an office in Los Angeles. Its trademarked mission is "Building Better Living."
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