ATLANTA, GA - The RADCO Companies, one of the nation's leading real estate opportunistic investment specialists, has purchased two multifamily communities in metro Atlanta totaling 553 units from Fannie Mae. The 439-unit Keeneland Farms and 114-unit Brown Ridge were acquired for an aggregate purchase price of $33.2 million. The announcement was made by the company's founder and CEO, Norman J. Radow.
Following the acquisition of these two properties, RADCO's portfolio now includes 26 communities containing 7,133 multifamily units in six cities in the Southeast and the Midwest. RADCO financed the purchase through a mixture of bridge debt provided by Freddie Mac and Hamilton State Bank, in addition to its own privately funded equity. To date, RADCO has raised about $150 million of private equity to fund its acquisitions.
Keeneland Farms was originally developed in 1972 on 44.4 acres in Smyrna, Ga. Brown Ridge, which is situated on 16 acres in Newnan, Ga., was built in three phases from 1976 to 1988. The apartment complex is located one mile from the heart of downtown Newnan. Both properties include one- to three-bedroom apartments, as well as townhomes.
RADCO plans to invest $5.8 million to renovate and improve these properties. The firm will first rebrand Keeneland Farms and Brown Ridge as Ashford Woods and Ashford at Brown Ridge, respectively, to coincide with the company's brand identity and its new ownership. The majority of RADCO's capital improvement plan will focus on upgrading unit interiors at the properties. The firm will also replace aging infrastructure, renovate Keeneland Farms and Brown Ridge's exteriors, and expand their amenity packages, which includes adding a pool to Brown Ridge. "Fannie Mae has done a good job stabilizing these two communities," said Radow. "It expects us to take these well-located properties to the next level with a substantial infusion of capital and superior execution. And that's exactly what we are going to do. We are very excited about the better living we can bring to our residents and the value we can create for our investors."
So far this year, RADCO has purchased nine properties including 2,264 units and requiring a capital investment of about $220 million. Just last week, RADCO acquired Country Club and Cobblestone, two apartment communities totaling 316 units in Anderson, S.C. The company currently has another property under contract in Denver that should close this fall and has plans to pursue additional opportunities across the Southeast and Midwest.