BOSTON-In a joint venture, Atlanta-based Radco Cos. and ArCapita acquired Longwood Towers from New York City-based TIAA-CREF for $110 million, or $397,111 a unit. The property was marketed as a condo conversion opportunity, and Norman Radow, Radco's president, tells GlobeSt.com, "that's under consideration." He confirms that an average unit price of $700,000, "would represent fair value."

The 10-story Gothic-style, T-shape buildings with an aggregate of 277 units were built during the 1920s and extensively renovated in 1993. The 4.2-acre complex is located at 20 Chapel St. in Brookline. According to a GlobeSt.com report, TIAA-CREF acquired the complex for an estimated $80 million in December 2002.

A team of CB Richard Ellis brokers marketed the property for TIAA-CREF this time around. Simon Butler, SVP, Biria St. John and Chris Sower in the local CBRE office, headed the effort and were joined by Jay Massirman and Robert Given principals in CBRE's Miami-based South Florida multifamily housing group. Radco was represented in house.

David Douvadjian of the local office of Meredith & Grew served as mortgage broker for $131 million in financing, which was provided by the New York City-based regional office of Fremont Investment & Loan. Patrick Crandall, Fremont's VP and regional manager, tells, GlobeSt.com, "it was a complicated lending structure, because ArCapita, Radco's equity partner, is the US entity of a Bahrain-based company. The deal had to be structured to conform with Islamic law, which is very different from ours." The loan has a three-year term and "floats over Libor at a spread of 3.25%," he says.

Radow says LJ Melody acquired an additional $22 million in equity capital from ArCapita. "Our overall capital purse is $153 million," he says. He plans a renovation budget of $30 million, with special emphasis on the common areas, which include a 7,000-sf, two-story lobby. "This property has something no other has--space, oodles and oodles of common-area space. Our plans for amenities are only limited by our imagination, not by space," he says.

This is Radco's second Boston project. In July 2003 it rescued the then-troubled 19-story, 61-unit Tremont Towers on Boston Common from foreclosure and turned it into the Grandview luxury condominium. "We continue to seek opportunities to polish rough stones into the finest of gems," Radow says, calling Longwood Towers a "signature property, with provenance, wonderful architecture and history."

Longwood Towers has a storied past. John F. Kennedy announced his acceptance of the nomination for president in its grand ballroom. And, during prohibition, Radow says, "the secret downstairs speakeasy was frequented by Babe Ruth," which he plans to fittingly turn into a wine cellar.