ATLANTA, GA - The RADCO Companies, the nation's leading real estate turnaround consultant, operator and asset manager, is returning to its roots in real estate investment for its own account with the acquisition of two multifamily properties in Atlanta, GA.
"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 The RADCO Companies. "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 noted that more lender owned assets and notes are being offered for sale and are now creating opportunities for buyers with ready cash and expertise. "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," Mr. 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."
The first asset, Somerpoint, is an attractive 144-unit development on Austell Road in Cobb County just north of Atlanta. Somerpoint is a boutique property that is underperforming the market and has been in receivership since December 2010 on behalf of a special servicer.
The second asset, Flynt Ridge, is comprised of 77 two-bedroom townhome units that were built in 1986 and 1989. The property is located in Griffin, GA, 30 minutes south of Atlanta's airport. In a scenario similar to Somerpoint, RADCO plans to increase occupancy and rents through hands-on asset management, upgrades and repositioning the development.
The transactions are being acquired through a closed fund RADCO raised in less than 10 days. It was oversubscribed and RADCO will utilize private markets and institutionalize equity funds to acquire additional assets. Bank of North Georgia, a part of Synovus, supplied the financing. Both assets meet the fund's criteria: they are bank assets; offered at a significant discount to the note amount; have great turnaround potential; and are located in areas where RADCO forecasts market improvement. "We look forward to putting our considerable toolbox to work at these turnarounds," Radow said.