Radco Enters Texas With Portfolio Buy
The Radco Cos entered Texas with a portfolio grab, acquiring three multifamily properties totaling 916 units, two in Houston and one in San Antonio. Locally, it now owns Country Place (122 units in the Energy Corridor) and Saddle Ridge (458 units in the Northshore/Wood Forest submarket). Founder/CEO Norm Radow tells us all three properties were foreclosed on in 2011 by Fannie Mae, which was the seller. They’re well-located with good bones and modern features, but are underperforming, which gives him a compelling execution opportunity. Radco will invest $12.2M (or about $13,300 per unit) into upgrading the portfolio.
Radco is rebranding the properties under its new “City” brand—Country Place is now City Terrace, and Saddle Ridge is now City Crossing. Norm says it’ll also have to re-underwrite the existing resident base because lease audits showed a lack of documentation in the properties. PCCP and Oklahoma Fidelity Bank provided debt for the acquisitions. Norm tells us he’s targeting the Southeast and Midwest for more value-add acquisitions; Texas, Oklahoma and Colorado especially fit his pro-growth and low-tax state criteria.
