A Georgia real estate developer has the Tar Heel State on its mind.
Atlanta-based The RADCO Cos. bought a a 264-unit, B-class community in University City, N.C., from Coheritage Oak Pointe LLC for $24 million.
The property, renamed Magnolia Terrace, is RADCO’s first community in North Carolina and will be managed by RADCO Residential.
RADCO plans to spend at least $3.2 million on capital improvements to modernize and upgrade the community, according to a company statement.
“Charlotte’s rapid-fire economic growth and strong governance have made it one of the most attractive regions in the country for job growth,” RADCO founder and CEO Norman Radow said in a statement.
RADCO’s multimillion-dollar investment will include interior upgrades, exterior improvements and common-area amenity expansion.
On June 22, Atlanta Business Chronicle reported RADCO bought The Pointe at Sugarloaf Apartments for $31.7 million and planned to spend upwards of $4 million on capital improvements to modernize the 35.5-acre property in Gwinnett County.
Radow said Gwinnett invests in major infrastructure improvements that support higher end developments.
Ricky Jones, a director in Franklin Street Real Estate Services’ Atlanta office, said as the cap rates in Atlanta’s core markets become more and more compressed many investors are moving back to the suburbs in search of yield.
“Like Cobb county and the 75 corridor, Gwinnett and the 85 corridor are seeing tremendous growth and activity,” Jones said. “The Gwinnett market is still quite affordable, often producing more attractive yields than other suburbs, and has much more room to grow.”
RADCO will finance the acquisition and planned renovation using private capital and financing from BBVA Compass.
The property will be renamed 2800 at Sweetwater and will be managed by RADCO Residential.
RADCO’s multifamily portfolio includes more than 15,000 units in Georgia, North Carolina, South Carolina, Illinois, Indiana, Oklahoma, Colorado, Texas and Florida.