RADCO Closes On $350m Of Multifamily Assets

Press Release
CFO smiling at camera

Jennifer LeClaire
January 14, 2015

Just how aggressive is RADCO Companies pushing into the multifamily market? The answer is in the numbers—and those numbers are in.

RADCO closed on about $350 million of 19 new multifamily assets in 2014. All told, the company now owns more than 10,000 units in 36 multifamily communities in key US markets like Atlanta, Denver, Oklahoma City, Texas, and South Carolina.

“The numbers are in, and 2014 was a significant year for The RADCO Companies,” says Norman Radow, founder and CEO of RADCO. “We aimed to be bullish, and we have surpassed any goals we could have imagined at the year’s start. And we’re not done yet. We have an extensive list of deals in the pipeline that will put us in an even stronger position for 2015.”

RADCO has made several significant multifamily acquisitions in recent weeks. Mission Galleria apartments in Smyrna, GA, is one of them. Mission Galleria has 416 units in a developing area right next to the new site of the $1.1 billion Atlanta Braves ballpark and mixed-use development northwest of Atlanta in Cobb County. RADCO also scooped up Gwinnett Place apartments in a northeast Atlanta suburb called Lawrenceville and Parkside at East Atlanta in the city’s East Atlanta submarket.

“The multifamily market is blossoming in Atlanta, where we now own more than 6,000 units, and we have been thrilled to expand our reach with our most significant acquisition this year in Denver, solidifying our presence in this highly active and attractive market,” says Radow. As he sees it, Denver and Atlanta are two of the most robust multifamily markets in the nation.

RADCO acquired Parc Belmar in metro Denver last June, for $95.33 million and a second Denver multifamily asset last October. In December, RADCO closed on three properties in Oklahoma City totaling 714 units, as well as three communities in Houston and San Antonio, Texas, containing 916 units.

“Finally, our properties in Oklahoma and in South Carolina are extremely well-situated in areas that will experience significant growth in dynamic, residential neighborhoods,” Radow says. “In Texas, it has become apparent that Houston is an incredibly strong market. We are excited to see what 2015 will bring for the firm.”

So far, RADCO has raised $215 million in private equity to fund its acquisitions. The Atlanta-based firm is raising additional private equity to continue its acquisitions in 2015.

“Multifamily continues to be compelling as there are several identified long-term drivers increasing the rental population and creating demand for apartment renting, which also makes this sector stable for the foreseeable future,” Kevin Finkel, vice president of Resource Real Estate. “New apartment supply in some urban submarkets may quell class A apartment rent growth a bit, but we do believe that there will be enough absorption for the new supply. The workforce renters continue to be the rental class most in need of product, and we expect renovated class B apartment targeting the workforce to continue to experience relatively high rent growth.”