Current Debt Terms
Ten-year floating rate debt at 265 basis points over 1-Month LIBOR with five years of interest-only payments.
The property had 41 years remaining on a ground lease and required extensive capital. Thus, the property did not meet the investment criteria of larger, national, institutional players who would normally bid on this asset. Moreover, because of its size, only the largest regional players could realistically participate in the sales process. RADCO was not the highest bidder, yet was awarded the deal because of our reputation for closing.
$9.5 million capital improvements plan focused on improving the property’s amenities, exteriors, and common areas, as well as upgrading the units to provide current and prospective residents the quality finish levels the submarket demanded.
At the end of December 2016, revenue had increased 40% and in-place rents had increased 44% following the acquisition.