ATLANTA—RADCO Companies just added two more Atlanta-area multifamily properties to its portfolio. The company snapped up Andover at East Cobb and Crossings at McDonough—554 multifamily units in all—for $53.4 million.

GlobeSt.com caught up with RADCO CEO Norman Radow to get the inside scoop on these transactions and how the neighborhoods came into play in this exclusive interview. RADCO's portfolio now includes 44 multifamily assets with another 1,301 units under contract to close in September and October.

GlobeSt.com: What was the appeal of these multifamily properties?

Radow: These properties were particularly appealing due to their immediate mark-to-market opportunities because we saw at the potential to increase rents after upgrading them to modern standards. They are both underperforming similar assets in their respective submarkets, which shows room for immediate improvement in terms of both rent and occupancy growth, in addition to being well-located in areas with strong economic drivers and excellent growth potential.

GlobeSt.com: What were you seeing in the marketplace that made this the right time to buy?

Radow: The nation has seen an influx of capital, including a large amount of foreign investment, into strong class B and C multifamily assets with value-added potential. Atlanta has been one of the main targets of this strategy. Both properties already have steady cash flow and attractive returns, so we are pleased to add them to our multifamily portfolio, which includes about 7,500 units in the metro Atlanta area, and further capitalize on this strategy in the coming months.

GlobeSt.com: How does this transaction fit in with the company philosophy?

Radow: We seek well-located assets with the potential to raise rents and deliver higher returns through excellent management, higher quality units and modernized amenities. In addition to their immediate mark-to-market opportunities, Winterset at East Cobb and Crossings at McDonough are two properties with value-added potential based on their strong locations. They have good bones and have been managed well during their lives, so RADCO will further capitalize on this enormous opportunity.

GlobeSt.com: Do you have any plans to renovate or make any immediate changes?

Radow: Yes, both properties were immediately rebranded the minute we closed. We will be investing about $4 million at Winterset at East Cobb and $2.5 million at Crossings at McDonough to upgrade units, revitalize their amenity packages, and complete exterior improvements. These improvements will add value to both assets, as well as make them more competitive in their respective markets.

GlobeSt.com: How did their location and surrounding neighborhood play into its appeal?

Radow: Both properties are in locations with tremendous current job creation: Winterset at East Cobb is near the Braves new development site, which is attracting corporate relocations, such as Synovous and Cox Communications, new civic development (Roxy Theatre), stadium construction jobs and all of the jobs needed to operate a $1 billion mixed-use development.  In addition, Cobb County and the City of Marietta have invested and will continue to invest in the Delk Road corridor, making significant infrastructure improvements and beautification projects. Crossings at McDonough benefits from its location in between the Port of Savannah and Hartsfield Jackson International Airport.  The City of McDonough has become a warehousing distribution hub for goods imported and exported out of the port.