CHARLESTON, SC – The RADCO Companies (RADCO), one of the nation’s leading opportunistic real estate developers, completed its fifth and sixth acquisitions of 2018 with the closing of the West Ashley Portfolio in Charleston, South Carolina. The two properties within the 300-unit, Class B portfolio have been renamed Ashford Riverview and Ashford Palmetto Square.

RADCO plans to spend over $5 million, or approximately $17,400 a unit, on capital improvements to reset the portfolio’s economic clock. With vintages spanning from 1965 to 1969, the portfolio consists of eight two- and three-tale buildings situated across two communities located less than a mile apart.

Averaging 807 square feet, the spacious garden-style apartments offer a range of one, two, and three-bedroom floor plans. The community amenities include swimming pools, leasing centers, landscaped courtyards, a community garden, dog parks, a fitness center, business center, laundry facilities, BBQ & picnic areas, elevators, and fire pits.

“Ashford Riverview and Ashford Palmetto Square are in the highly desirable West Ashley submarket of Charleston, offering a fantastic deal of opportunity and value to its residents.” said Norman Radow, founder and Chief Executive Officer of The RADCO Companies. “We are going to transform these communities with a right value-added strategy to enhance our residents’ living experience.”

Capital improvements will include significant building repairs, upgraded landscaping, HVAC repairs, major lighting upgrades, amenity upgrades, and unit renovations. These improvements, along with new management by RADCO Residential, the Company’s proprietary management platform, will transform the properties’ look and living experience.

The portfolio is located in the heart of West Ashley, one of Charleston’s fastest growing submarkets. The communities are just minutes from Downtown Charleston and offer residents convenient access to West Ashley shopping centers.

RADCO financed the acquisition using its unique private capital platform, as well as debt furnished by SunTrust Bank. Since August 2011, the Company has raised approximately $650 million in private capital to fund its acquisitions, making it one of the largest private capital companies of its type in the nation. With this latest deal, RADCO has bought 80 properties since 2011.

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TAMPA, FL – Balfour Beatty Communities, a national residential real estate investment and management company responsible for the ownership and operation of more than $6 billion in multifamily assets, announced that it has expanded its Florida portfolio with the buy of Providence at Zephyr Ridge located in the quick-growing Tampa submarket of Zephyrhills, FL. The Company bought the property as part of a joint venture with Houston-based real estate firm, Apex One Investment Partners.

The community—which will be rebranded as Preserve at Zephyr Ridge—is comprised of 13 residential buildings that span more than 12 acres located at 35940 Inspiration Drive. A variety of retail, entertainment and restaurant options are easily accessible in the Zephyrhills area, in addition to major healthcare providers including the Florida Hospital System.

The property is comprised of 208-units in a variety of one, two, and three-bedroom floor plans averaging 1,023 square feet. Apartment features that are offered include large walk-in closets, modern fixtures, master suites and fully-equipped kitchens. Several community amenities including a sparkling pool with outdoor kitchen and screened-in lanai, playground, fitness center and clubhouse with business center.

“This acquisition falls directly in-line with Balfour Beatty Communities’ strategy of acquiring high-quality assets in growing submarkets where we can add value through operational improvements and a targeted renovation plot,” said Michael Price, vice president of residential transactions for Balfour Beatty Communities. “We are excited to expand our Florida footprint into the Tampa market and look forward to delivering the world-class property management services and exceptional living experience that has become our hallmark.”

Balfour Beatty Communities will self-perform property management services and invest in a series of capital improvements at the property, including interior, exterior and amenity upgrades.

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IRVINE, CA – CoreVest, the leading lender to residential real estate investors, announced the closing of a $6-million mortgage loan secured by a pool of 55 single-family rental homes.  The properties, located in and around Kansas City, Missouri, are owned by Golden Pacific Capital’s GPC Fund I.  This transaction is one of the inaugural loans being originated as part of the Freddie Mac Multifamily pilot program for Single-Family Rental (SFR). 

GPC identifies homes that are unlikely to be bought by potential homeowners due to the extensive renovation work required.  After updating the properties, GPC rents them to people in the community.  “We look for homes where we can add value,” said Ian Fisher, co-founder of GPC. “Often times, we invest as much as 20% of the buy price of the home on the rehab.”  

“Golden Pacific Capital is currently managing over 250 homes in Kansas City,” added Hubert Hultgren, co-founder. “We provide residents affordable places to live with fantastic access to jobs and schools.”  In this transaction, 82 percent of the units are affordable for families earning at or below 80 percent of the area’s adjusted median income.  

CoreVest sees participation in the Freddie Mac pilot as a natural extension of its core business. “We financed GPC with traditional blanket SFR term and bridge loan products to help them buy and rehabilitate properties, and now, we’re expanding the relationship as part of the Freddie pilot program,” commented Beth O’Brien, CEO of CoreVest.  “It’s exciting to watch a client grow, especially when they are putting freshly rehabbed assets back into the housing stock.”

With Freddie Mac entering the space on a pilot basis, it is expected that liquidity in the affordable market will increase and help drive greater availability of workforce housing.  “We were excited to be the first partner for Freddie Mac in the SFR pilot with our wrapped securitization last November,” said Christopher Hoeffel, CoreVest CFO.  “Loans such as GPC now allow our borrowers to participate directly in the Freddie program.”

“We are pleased to fund another transaction under our affordable single-family rental pilot, which is designed to increase the availability of affordable rental housing in communities across the country,” said Andrew Tush, senior production manager of Targeted Affordable Housing Structured Transactions at Freddie Mac Multifamily. “The overwhelming majority of the homes in this transaction will remain affordable to working families, and we thank our strong partners at CoreVest for delivering this vital housing. We continue to learn from these pilot transactions using our unique position in the market to drive financing towards greater affordability in the single-family rental market.”

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