ATLANTA-RADCO is returning to its real estate investment roots with the acquisition of two multifamily properties. RADCO is best known as a real estate turn around consultant, but the company is turning its attention to making investments of its own.

RADCO snapped up Somerpoint, a 144-unit development on Austell Road in Cobb County just north of Atlanta. An underperforming boutique property, Somerpoint has been in receivership since December 2010 on behalf of a special servicer. RADCO also bought Flynt Ridge, a 77 two-bedroom townhome asset, in Griffin, 30 minutes south of Atlanta's airport. RADCO plans to increase occupancy and rents through hands-on asset management, upgrades and repositioning the properties.

"Since 2006, we have focused exclusively on putting our development and operating expertise to work for clients who were struggling to build value in challenging markets and we have built out a perfect machine to manage every aspect of a troubled asset's lifecycle—whether completing construction, settling or prosecuting litigation, selling residences or the properties themselves," Norman Radow, CEO of the RADCO Cos., said in a statement. "With these two acquisitions, we have the opportunity to become our own client, bringing properties under the RADCO umbrella of services for comprehensive turnaround and building value."

Radow has noticed a clear market trend: more lender-owned assets and note are coming available for sale—and that’s creating more opportunities for buyers with cash on hand and expertise. Radow says his firm has unique access to the REO and note sales market. With these two multifamily deals, he continues, RADCO knew the lenders, the market, and the properties. The firm has a plan in place to manage the turnaround and value enhancement for them.

Derrick Bloom, Jones Lang LaSalle managing director, tells GlobeSt.com he’s seeing traction in the REO, special service and lender-controlled sales, especially in the class B and class C multifamily space. As he sees it, these sales are offering good opportunities for buyers to acquire quality assets, repair any capital structure or physical issues at the property, and ultimately have a performing asset at an attractive basis.

"Financing for these deals can be tricky and buyers and sellers pricing expectations are narrowing somewhat," Bloom says. "But overall class B and C properties of have  seen strong demand from capital seeking risk adjusted returns that can’t be achieved in the class A space."