Why RADCO Is Betting on Class C Multifamily

Renamed Greenwood at Ashley River, the multifamily asset adds 280 class C-plus units to RADCO’s portfolio.

ATLANTA— RADCO just inked its ninth acquisition of the year. The opportunistic real estate developer snapped up the Reserve at Ashley River a multifamily complex in Charleston, SC for $12.5 million. Renamed Greenwood at Ashley River, the multifamily asset adds 280 class C-plus units to RADCO’s portfolio. RADCO Residential will manage the multifamily complex, which is the company’s 61th buy sine 2011, its sixth in South Carolina and its first in the Charleston Market. “Charleston’s strong economic fundamentals have made it one of the most attractive regions in the country for real estate investment,” Norman Radow , founder and CEO of RADCO, tells GlobeSt.com. “We are especially encouraged by the continued investment in the adjacent Dreamliner manufacturing plant, as Boeing’s impact on the area has the potential to parallel the ‘BMW effect’ on economic growth previously witnessed in Upstate South Carolina.” Greenwood at Ashley River is located in the North Charleston submarket , an area undergoing a commercial and residential transformation. The property is within five miles of both Interstate 526 and Interstate 26, which offers residents access to the major employment, retail , and lifestyle centers in the area. Still an up-and-coming location, North Charleston is seeing an influx of companies relocating in the area, which has transformational repercussions for the submarket and Greenwood at Ashley River. As Radow noted, the combined presence of the Boeing Dreamliner plant immediately next door, the Charleston International Airport down the street, and the nearby Bosch Charleston plant account for over 10,000 jobs in the immediate area and key factors driving RADCO’s investment in the class C multifamily community. The new Mercedes plant is also under construction in the submarket. “Greenwood at Ashley River’s prime location within this rapidly transforming neighborhood, coupled with its substantial property management and value-add opportunities, gives us an ideal entry point into a burgeoning marketplace,” Radow says. “I cannot wait for RADCO to turn this property into a true community.” Built in 1974, Greenwood at Ashley River has 35 two-story buildings on 20.5 acres. Averaging 939 square feet, the property offers a combination of two- and three-bedroom units that each feature a private, open air balcony. Multifamily community amenities include a leasing center, pool, playground, and open greenspace that could be used to house new features. RADCO plans to spend at least $3.4 million on the first phase of capital improvements to modernize and upgrade the multifamily community. RADCO financed the acquisition using a first mortgage loan from KeyBank and private equity. Since August 2011, the company has raised over $452 million in private capital to fund its acquisition. Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What’s driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.