ATLANTA, Aug. 8, 2012 /PRNewswire/ -- The RADCO Companies, the nation's leading real estate turnaround specialist, has acquired a three-property, 402-unit apartment portfolio in Georgia.
The properties include the 112-unit Ashford Place Apartments in Griffin, GA; Briar Creek Apartments, a 160-unit complex in Conyers, GA; and the 130-unit Sierra Place Apartments in Atlanta, GA. The properties were purchased for $13.7 million. RADCO had been asset manager for the portfolio on behalf of an equity fund for five years. The transaction included the acquisition of the equity and a restructure of the existing debt.
"As commercial mortgages mature, the value of the underlying collateral is being tested. We are on the front lines of this process, and have the talent it takes to make underperforming and undervalued deals work," said RADCO CEO Norman Radow. "We had a plan in place to manage the turnaround and thus create immediate value for each of these assets."
This plan includes nearly $1 million in capital improvements over the next six to 12 months, which will consist of enhanced and expanded amenities such as safety improvements, unit upgrades and the installation of utility efficiency devices.
Occupancy rates at all three apartment complexes are stable, with Sierra Place and Ashford Place averaging 95 percent and 94 percent tenancy, respectively. Briar Creek has 10 to 15 down units, which RADCO will restore and market.
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.
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SOURCE The RADCO Companies